Aerospace, space and defence

We help aerospace, space and defence clients overcome complex challenges and launch the solutions of the future.

The aerospace, space and defence industries in the Middle East are experiencing a rapid transformation as countries in the GCC diversify their economies and seek the socio-economic and commercial benefits that the sectors offer. But industry stakeholders must navigate multiple hurdles: the COVID-19 pandemic, geopolitical power shifts, new competitors and evolving technologies.

Keeping pace demands flexibility, speed and focused investment. To develop a winning strategy, authorities, investors and manufacturers must equip local workforces, enhance productivity, embrace technological innovation and join a supply chain of global players.

 

Why Strategy&

Strategy& combines deep industry experience with a practical, analytical approach to assist aerospace, space and defence clients solve even the most daunting challenges. We put our comprehensive, integrated capabilities to work helping clients achieve their goals, from effective policymaking to organization and technological transformation.

Whether advising governments in refining their regulatory system or developing restructuring plans, operational excellence programs or R&D strategies for corporate clients, our hands-on team helps aerospace, space and defence stakeholders create a smarter, cleaner and more integrated future for the Middle East — and beyond.

 

How we can help

Regulatory frameworks and policymaking

We help governments and agencies define defence policies and regulatory frameworks that support localization, promote technological innovation, optimize logistics and procurement.

Regulatory frameworks and policymaking
Sector and corporate strategy

We develop sector strategies to guide governments, corporations and sovereign wealth funds in the creation and management of manufacturing and service hubs that advance national industry and employment goals.

Aerospace and corporate strategy icon by Strategy&
Technology innovation

We create technological innovation strategies to help governments and corporations to diversify products and capabilities and increase regional capacity for economic growth.

Aerospace Strategy - Technology & Innovation
Transformation and restructuring programs

We help equipment manufacturers design and implement extensive transformation programs that enable them to optimize their product portfolios, improve productivity and build quality products.

Aerospace Strategy - Restructuring & Transformation
Operational excellence and organizational design

We design and implement operational excellence programs that enable armed forces and industry firms to improve efficiency and increase the reliability and sustainability of supply chains.

Aerospace Strategy - Operational Excellence

Building the space, aerospace and defence sectors: Stories from our clients

Localization policy for the defence sector

A GCC country wanted to localize its defence spend, consolidating procurement and regulatory functions across all armed forces.

Strategy& helped to assess the supply chain of all major procured assets and to identify the potential for sustainable localization. We identified the defence product subsystems and components that could be localized and developed related business cases. Executive management approved and is now implementing our recommendations.

Defining national policy to localize aerospace and defense spending
Aerospace and aviation strategy for a GCC country

To advance the capabilities of its aerospace and aviation sectors and support localization efforts, a sovereign wealth fund needed to develop its supporting infrastructure and create partnerships with global players. Such a comprehensive strategy required a deep understanding of aerospace and aviation value chains to identify concrete opportunities.

Strategy& conducted a competitive industry analysis and identified potential business opportunities that could provide synergies with existing assets. We identified and detailed projects by business model, capital requirements, economic impact and implementation roadmap.

We recommended initiatives in core sector activities, including final assembly line and commercial and military maintenance, repair and overhaul (MRO). We also identified ways to support these activities by developing educational programs, supporting R&D and enhancing engineering and design capabilities.

The client is now implementing this strategy and quickly evolving into a recognized player in the global aerospace sector.

Crafting aerospace and aviation strategy - Smart City Planning
Modernization of the armed forces logistics

The armed forces of a GCC member state needed to modernize and reorganize logistics to support joint operations and enhance effectiveness and efficiency across all force elements.

Strategy& developed and implemented a joint logistics model that spanned air, land and sea forces as well as multiple material categories, including medical, ordnance, engineering, warehousing, transport and facilities. We championed strategic partnerships between domestic and international defence industry manufacturers and implemented a modern ERP to digitize and automate logistics.

As a result, the client streamlined processes, reduced logistics manpower and improved the availability of platforms, systems and materials during both peace-time and operations.

Modernizing logistics to strengthen armed forces capabilities
Building of a defence national champion

To contribute to its GDP and create quality jobs, a major GCC country aimed to localize 50% of its national defence spend across air, land, naval and electronics segments. In doing so, the national government set up a national champion to capture opportunities in the defence industry.

Strategy& helped to define this comprehensive strategy across all defence segments. We created the operating model, developed national and international merger and acquisition and post-merger integration activities, and identified promising joint ventures with strategic partners.

Defence sector strategy - national champion building
Restructuring and transformation of a defence contractor

A Middle East-based military products manufacturer was challenged with limited demand and operational inefficiencies. Despite recent infrastructure investments, product quality issues remained and assembly lines were underutilized.

Strategy& conducted the necessary studies to developed a transformation plan that established performance targets, informed by detailed analysis of market demand, industry competition and the client’s value chain positioning and areas of strength. Detailed initiatives included restructuring assembly lines, automating certain line segments and introducing new maintenance and quality control programs. An accompanying detailed financial plan enabled the firm to achieve break-even.

Aerospace Strategy - Defence Contractor Transformation
Space agency concept design for a GCC country

As part of its vision for diversifying its economy by expanding into technology industries, one Middle East country recognized the opportunities presented by the space industry. However, regional workforce constraints hampered the sector’s potential.

Strategy& developed and launched a space agency to oversee the funding and creation of the industry’s R&D-intensive technology sector. We worked with the client to establish the agency’s mandate and to identify the priority space programs that could offer the greatest impact. This strategy included a proposed operating model, business and financial plans, and a legal framework to support the enactment of the space agency.

Aerospace Strategy - Space Agency Design
Localization policy for the space industry

A major GCC development aimed to localize innovative industries to diversify the local economy in high-value sectors. The space sector was a natural focus, given its wealth of quality tech jobs and the opportunities inherent in the global space economy.

Strategy& identified ways to localize space manufacturing activities and locate potential regional and global partners. We reviewed the space value chain, assessing regional and global trends, market size and profitability. We then identified the segments that offered the most promising localization options, as well as potential partners in each of those segments. We also helped to develop incentive packages to attract these partners to the country’s innovative industrial zone.

Localizing the space industry - Strategy& aerospace foresight - Regional Innovation Hub

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Contact us

Marwan Bejjani

Marwan Bejjani

Partner, Strategy& Middle East

Per-Ola Karlsson

Per-Ola Karlsson

Senior Executive Advisor, Strategy& Middle East

Camil  Tahan

Camil Tahan

Partner, Strategy& Middle East

Mark Haddad

Mark Haddad

Partner, Strategy& Middle East

Maha Raad

Maha Raad

Partner, Strategy& Middle East

Vivek Madan

Vivek Madan

Partner, Strategy& Middle East

Dr. Andreas Gissler

Dr. Andreas Gissler

Partner, Strategy& Middle East

Elias Karam

Elias Karam

Partner, Strategy& Middle East

Nabil Katicha

Nabil Katicha

Principal, Strategy& Middle East

Haroon Sheikh

Haroon Sheikh

Senior Executive Advisor, Strategy& Middle East

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