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.
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.
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.
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.
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.
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.
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.
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.
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.