Table fo Contents 1. Introduction 7 1.1. What is this Report About? 7 1.2. Definitions 7 1.3. Summary Methodology 9 1.4. About Strategic Defence Intelligence 10 2. Executive Summary 11 3. Market Attractiveness and Emerging Opportunities 13 3.1. Current Market Scenario 14 3.1.1. Military Fleet Size 14 3.1.2. Procurement Programs 16 3.1.2.1. Ongoing procurement programs 16 3.1.2.2. Future procurement programs 17 3.1.2.3. Key Drivers and Challenges 18 3.2. Defense Market Size Historical and Forecast 19 3.2.1. Belgium defense expenditure is expected to increase at a CAGR of 1.15% over the forecast period 19 3.2.2. Equipment procurement plans and joint operations expected to drive defense expenditure over the forecast period 21 3.3. Analysis of Defense Budget Allocation 22 3.3.1. Belgium’s defense expenditure as a percentage of GDP expected to decrease 22 3.3.2. Share of capital expenditure to average 6.2% over the forecast period 24 3.3.3. Capital expenditure expected to increase at a CAGR of 1.72% over 2019-2023 26 3.3.4. Per capita defense expenditure set to decrease over the forecast period 28 3.4. Homeland Security Market Size and Forecast 29 3.4.1. Belgium homeland security expenditure expected to increase at a CAGR of 4.09% over the forecast period 29 3.4.2. Drug trafficking and cyber security are the main homeland security concerns 31 3.4.3. Belgium falls under “high risk” of terrorism category 32 3.4.4. Belgium faces high level of threat from foreign terrorist organizations 33 3.4.5. Belgium has a terrorism index score of 4.7 35 3.5. Benchmarking with Key Global Markets 36 3.5.1. Belgium defense budget expected to increase at a higher rate than other European countries over the forecast period 36 3.5.2. Belgium defense expenditure is low compared to other European nations 38 3.5.3. Belgium allocates a comparatively low share of GDP for defense 39 3.6. Market Opportunities: Key Trends and Growth Stimulators 40 Top 10 Defense market sectors by value (US$ Million) - Projections over the period 2018-2023 40 4. Defense Procurement Market Dynamics 41 4.1. Import Market Dynamics 42 4.1.1. Defense imports are expected to recover over the forecast period 42 4.1.2. Belgium sourced most its arms imports from its neighbors 43 4.1.3. Aircraft, Naval vessels and armored vehicles dominate military hardware imports 44 4.2. Export Market Dynamics 45 4.2.1. Arms exports to increase during the forecast period 45 4.2.2. Belgium arms exports expected to reach new markets over the forecast period 46 4.2.3. Aircraft and ships are the main exported defense products 47 5. Industry Dynamics 48 5.1. Market Regulation 48 5.1.1. Offset policy aids development of domestic defense industry 48 5.1.2. Belgium permits 100% FDI in defense industry 49 5.2. Market Entry Route 50 5.2.1. Budgeting Process 50 5.2.2. Procurement Policy & Process 51 5.2.3. Joint weapons development program, a viable market entry route 52 5.2.4. Subsidiaries provide market entry opportunities 52 5.2.5. Acquisition of domestic companies enables entrance to market 53 6. Competitive Landscape and Strategic Insights 54 6.1. Competitive Landscape Overview 54 7. Business Environment and Country Risk 57 7.1. Economic Performance 57 7.1.1. Gross Domestic per Capita 57 7.1.2. Gross Domestic Product, current US$ 58 7.1.3. Exports of Goods and Services 59 7.1.4. Imports of Goods and Services 60 7.1.5. Gross National Disposable Income 61 7.1.6. Local Currency Unit per US$ 62 7.1.7. Market Capitalization of Listed Companies 63 7.1.8. Market Capitalization of Listed Companies as a % of GDP 64 7.1.9. Government Cash Surplus/Deficit as % of GDP 65 7.1.10. Goods Exports as a % of GDP 66 7.1.11. Goods Imports as a % of GDP 67 7.1.12. Services Imports as a % of GDP 68 7.1.13. Services Exports as a % of GDP 69 7.1.14. Foreign direct investment, net (BoP, current US$ Billion) 70 7.1.15. Net foreign direct investment as % of GDP 71 7.1.16. Mining, Manufacturing, Utilities Output 72 8. Appendix 73 8.1. About SDI 73 8.2. Disclaimer 73

List of Tables Table 1: Belgium Army Strength 14 Table 2: Belgium Navy Strength 14 Table 3: Belgium Air Force Strength 15 Table 4: Belgium Ongoing Procurement Programs 16 Table 5: Belgium Future Procurement Programs 17 Table 6: Belgium Defense Expenditure (EUR Billion & US$ Billion), 2014-2023 19 Table 7: Belgium GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023 22 Table 8: Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 24 Table 9: Belgium Defense Capital Expenditure (EUR Million & US$ Million), 2014-2023 26 Table 10: Belgium Per Capita Defense Expenditure (US$), 2014-2023 28 Table 11: Belgium Homeland Security Expenditure (EUR Billion & US$ Billion), 2014-2023 29 Table 12: Terrorism Index, 2018 33 Table 13: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 36 Table 14: Top 10 Defense Market Sectors of Belgium by Value (US$ Million) - 2018-2023 40 Table 15: Offset Regulations in Belgium 49 Table 16: Belgium Budget Formation Timetable: 50 Table 17: Belgium Participation in International Defense Development Programs 52 Table 18: Competitive Landscape of the Belgium Defense Industry 54List of Figures Figure 1: Belgium Defense Expenditure (EUR Billion), 2014-2023 20 Figure 2: Belgium Defense Expenditure (US$ Billion), 2014-2023 20 Figure 3: Belgium GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2014-2023 23 Figure 4: Belgium Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 25 Figure 5: Belgium Defense Capital Expenditure (EUR Million), 2014-2023 27 Figure 6: Belgium Defense Capital Expenditure (US$ Million), 2014-2023 27 Figure 7: Belgium Per Capita Defense Expenditure (US$), 2014-2023 28 Figure 8: Belgium Homeland Security Budget (EUR Billion),2014-2023 30 Figure 9: Belgium Homeland Security Budget (US$ Billion), 2014-2023 30 Figure 10: Terrorism Heat Map, 2018 32 Figure 11: Terrorism Index, 2018 35 Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 37 Figure 13: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2018 and 2023 38 Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018 39 Figure 15: Belgium Defense Import Trend, 2012-2016 (TIV values in US$ Million) 42 Figure 16: Belgium Defense Imports by Country (%), 2012-2016 43 Figure 17: Belgium Defense Imports by Category (%),2012-2016 44 Figure 18: Belgium Defense Exports Trend (TIV Values in US$ Million), 2012-2016 45 Figure 19: Belgium Defense exports by Country (%), 2012-2016 46 Figure 20: Belgium Defense Exports by Category (%), 2012-2016 47 Figure 21: Belgium GDP per capita, 2015-2025 57 Figure 22: Belgium Gross Domestic Product (current US$ Billion), 2015-2025 58 Figure 23: Belgium Exports of goods and services (current LCU Billion), 2005-2014 59 Figure 24: Belgium Imports of goods and services (current LCU Billion), 2005-2014 60 Figure 25: Belgium gross national disposable income (US$ Billion), 2005-2013 61 Figure 26: Belgium LCU per US$, 2015-2024 62 Figure 27: Belgium Market Capitalization of listed Companies (US$ Billion), 2005-2012 63 Figure 28: Belgium Market Capitalization of listed companies as a % of GDP, 2005-2012 64 Figure 29: Belgium Government cash Surplus/deficit as a % of GDP, 2005-2012 65 Figure 30: Belgium Goods Exports as a % of GDP, 2005-2014 66 Figure 31: Belgium Goods Imports as a % of GDP,2005-2014 67 Figure 32: Belgium Services Imports as a % of GDP, 2005-2014 68 Figure 33: Belgium Services Exports as a % of GDP, 2005-2014 69 Figure 34: Belgium Foreign direct investment, net (BoP, current US$ Billion), 2005-2014 70 Figure 35: Belgium Net foreign direct investment as % of GDP, 2005-2014 71 Figure 36: Belgium Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 72