"A decline in new weapons sales can also be explained, in part, by the
practical need for some purchasing nations to absorb and integrate major
weapons systems they have already purchased into their force structures,"
the report said. "The need to do this may, at the same time, increase the
number of arms contracts related to training and support services, even as
it reduces the number of large and costly orders for new military
equipment."
The report by the Congressional Research Service, released on Monday,
deemed the United States as the leading supplier of weapons to Saudi Arabia
and other developing nations. Russia and Britain trailed the United States
as the
leading arms suppliers to the developing world. The Middle East was said to
have maintained its position as the world's leading arms consumer.
Saudi Arabia was rated No. 3 in global weapons purchases, with $3.2
billion in 2006. In first place was Pakistan, with $5.1 billion in new
contracts, followed by India, with $3.5 billion.
"Saudi Arabia was the leading recipient of arms deliveries among
developing world recipients in 2006, receiving $4.1 billion in such
deliveries," the report said. "For the period from 2003-2006, Saudi Arabia
made $12.4 billion in arms transfer agreements."
CRS cited such major U.S. deals as a $340 million upgrade of the AH-64
Apache attack helicopter for Saudi Arabia and a $134 million deal for
communications terminals. Another U.S. project was for the supply of $106
million worth of the Evolved SeaSparrow ship-to-air missiles to the United
Arab
Emirates.
"The value of arms transfer agreements by the United States with Saudi
Arabia rose notably from the 1999-2002 period to the 2003-2006 period,
rising from $2.7 billion in the earlier period to $4.5 billion in the later
period," the report said. "Saudi Arabia made 36.3 percent of all its arms
transfer agreements with the United States during 2003-2006.
"Meanwhile, arms transfer agreements by the United Arab Emirates with
all suppliers collectively decreased by a significant degree from 1999-2002
to 2003-2006,
falling from $8.8 billion to $3.7 billion," the report added.
Russia has also sought to expand its market in the Middle East. CRS, in
a report authored by Richard Grimmett, said Russia concluded a $700
million deal for TOR-M1 surface-to-air missile systems to Iran in
2005.
"Among the most significant arms transfer deals Russia made in 2006, was
with Algeria," the report said. "This package of agreements included the
sale of 28 Su-30MKA fighter aircraft, 36 Mig-29SMT fighter aircraft, 16
Yak-130 advanced training aircraft; eight battalions of S-300 PMU-2 SAM
systems, a number of Pantsyr-S1 air defense missile systems, and a number of
T-90S main battle tanks. The total cost of all of these weapons and
associated equipment is estimated at $7.5 billion."
The report said the United States signed $10.3 billion worth of weapons
contracts with the developing world in 2006. Russia signed $8.1 billion and
Britain $3.1 billion worth of defense deals.
"Sale of military aircraft and missiles continues to be a significant
portion of Russia's arms exports," the report said. "Yet the absence of
major new research and development efforts in this and other military
equipment areas may jeopardize long-term Russian foreign arms sales
prospects."
