Defense investment faces structural barriers, not capital shortages, Bain & Company and AIA report finds

The US defense industry does not face a shortage of capital, but structural barriers that prevent investment from reaching critical areas, according to a report by Bain & Company and the Aerospace Industries Association.

While focused on the US, the findings offer lessons for Middle Eastern governments and investors seeking to strengthen domestic defense industries, attract long-term private capital and expand their presence in international markets.

“The UAE has built a sovereign defense industrial base faster than any comparable nation in history, and its export trajectory in recent years is one of the most evident proof points globally that the report’s primary recommendation actually works: the UAE designs its programs with export markets in mind from the start, to grow international sales and make them sustainable and economically viable,” said…