Table of 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 11 2. Executive Summary 12 3. Market Attractiveness and Emerging Opportunities 14 3.1. Current Market Scenario 15 3.1.1. Primary threat perception 15 3.1.2. Military doctrine and strategy 16 3.1.3. Military Fleet Size 17 3.1.4. Procurement Programs 21 3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023 23 3.1.6. Social, political, and economic environment and support for defense projects 24 3.1.7. Political and strategic alliances 24 3.2. Defense Market Size - Historical and Forecast 25 3.2.1. Jordanian defense budget, excluding US, aid to post a CAGR of 6.91% over the forecast period 25 3.2.2. Jordanian aggregate defense expenditure - inclusive of US military aid - will post a forecast-period CAGR of 5.60% 27 3.2.3. Hostility among neighboring countries and foreign military aid to drive defense expenditure 30 3.2.4. Jordanian defense expenditure as a percentage of GDP to average 3.9% over the forecast period 31 3.3. Analysis of Defense Budget Allocation 33 3.3.1. Revenue expenditure to continue to take precedence over capital expenditure 33 3.3.2. Financial Aid from the US contributes a major share of the country’s capital expenditure 35 3.3.3. The country’s capital budget allocations else remain low 36 3.3.4. Per capita defense expenditure to grow over the forecast period 38 3.4. Homeland Security Market Size and Forecast 39 3.4.1. Homeland security expenditure to post a forecast-period CAGR of 3.76% 39 3.4.2. Internal conflicts and unauthorized activities in refugee camps will be the key factors driving HLS expenditure 41 3.4.3. Jordan considered at ‘moderate risk’ of terrorism 42 3.4.4. Jordan faces a moderate level of threat from terrorist organizations 43 3.4.5. Jordan has a terrorism index score of 3.8 45 3.5. Benchmarking with Key Global Markets 46 3.5.1. Jordan ranks among the lowest defense spending countries in the world 46 3.5.2. Jordan’s defense spending will remain minimal when compared to regional peer Saudi Arabia 48 3.5.3. Jordan ranks low in terms of defense expenditure as a percentage of GDP 49 3.6. Market Opportunities: Key Trends and Growth Simulators 50 3.6.1. Top 10 defense market sectors by value, 2018-2023 50 3.6.2. Corvettes MRO 51 3.6.3. Survivability modernization 52 3.6.4. Soft body armor 53 4. Defense Procurement Market Dynamics 54 4.1. Import Market Dynamics 56 4.1.1. The majority of Jordan’s military equipment is generated through foreign imports 56 4.1.2. The Netherlands, the US, and Belgium were the dominant suppliers of defense equipment to Jordan 57 4.1.3. Aircraft and missiles dominated Jordan’s defense imports 58 4.2. Export Market Dynamics 59 4.2.1. Defense exports expected to grow over the forecast period 59 4.2.2. Pakistan and the US accounted for the largest shares of Jordan’s total defense exports 60 4.2.3. Defense exports include aircraft and armored vehicles 61 5. Industry Dynamics 62 5.1. Five Forces Analysis 62 5.1.1. Bargaining power of suppliers: high 63 5.1.2. Bargaining power of buyers: low 63 5.1.3. Barrier to entry: medium 63 5.1.4. Intensity of rivalry: low to medium 63 5.1.5. Threat of substitution: low to medium 63 6. Market Entry Strategy 64 6.1. Market Regulation 64 6.1.1. The government allows FDI in the defense industry with stipulations 64 6.1.2. Jordan does not impose any offset obligations 64 6.2. Market Entry Route 65 6.2.1. Budgeting Process 65 6.2.2. Procurement Policy and Process 65 6.2.3. Government-to-government deals are the preferred market entry route for foreign OEMs 65 6.2.4. Joint ventures and technology transfer form attractive entry routes for foreign manufacturers 66 6.3. Key Challenges 67 6.3.1. Small defense budget hinders the entry of foreign companies in Jordan 67 6.3.2. Corruption acts as an obstacle for market entry 67 7. Competitive Landscape and Strategic Insights 68 7.1. Competitive Landscape Overview 68 7.1.1. Jordanian defense industry is dominated by foreign competitors 69 7.2. Key Domestic Companies 70 7.2.1. KADDB: Overview 70 7.2.2. KADDB: products and services 70 7.2.3. KADDB: Recent announcements and strategic initiatives 70 7.2.4. KADDB: Alliances 71 8. Business Environment and Country Risk 72 8.1. Economic Performance 72 8.1.1. GDP per capita 72 8.1.2. Gross domestic product 73 8.1.3. Export of goods and services (LCU Billion) 74 8.1.4. Import of goods and services 75 8.1.5. Gross national disposable income 76 8.1.6. LCU per US$ (period average) 77 8.1.7. Market capitalization of listed companies 78 8.1.8. Market capitalization of listed companies as a percentage of GDP 79 8.1.9. Total government cash surplus/deficit as a percentage of GDP 80 8.1.10. Goods exports as a percentage of GDP 81 8.1.11. Goods Imports as a percentage of GDP 82 8.1.12. Services Imports as a percentage of GDP 83 8.1.13. Services exports as a percentage of GDP 84 8.1.14. Mining, manufacturing, and utilities output 85 9. Appendix 86 9.1. About SDI 86 9.2. Disclaimer 86

List of Tables Table 1: Jordan - Army Strength, 2018 17 Table 2: Jordan - Air Force Strength, 2018 19 Table 3: Jordan - Naval Strength, 2018 20 Table 4: Jordanian - Ongoing Development and Procurement Programs, 2018 21 Table 5: Jordanian - Future Procurement Programs, 2018 21 Table 6: Top Jordanian Defense Procurement Programs by Value (US$ Million) 2018-2023 23 Table 7: Jordan Defense Expenditure (JOD Billion & US$ Billion), 2014-2023 25 Table 8: Total Jordanian Defense Expenditure Including US Aid (US$ Billion ), 2014-2023 27 Table 9: Jordan - GDP Growth vs Defense Expenditure as Percentage of GDP, 2014-2023 31 Table 10: Jordan - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 33 Table 11: Jordan - Capital Expenditure Split by Allocated Capital Expenditure and US Military Aid (US$ Million), 2014-2023 35 Table 12: Jordan - Defense Capital Budget Excluding US Aid (JOD Million / US$ Million), 2014-2023 36 Table 13: Jordanian Per Capita Defense Expenditure (US$), 2014-2023 38 Table 14: Jordan - Homeland Security Expenditure (JOD Billion / US$ Billion / %), 2014-2023 39 Table 15: Terrorism Index, 2018 43 Table 16: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 46 Table 17: Jordan - Top 10 Defense Market Sectors by Value (US$ Million), 2018-2023 50 Table 18: Jordanian Budget Formation Timetable 65 Table 19: Jordan - Top 10 Defense Suppliers by Value (US$ Million), 2018-2023 68 Table 20: Jordan - Competitive Landscape, 2018 69 Table 21: KADDB - Products and Services 70 Table 22: KADDB - Alliances 71List of Figures Figure 1: Jordanian Defense Expenditure (JOD Billion), 2014-2023 26 Figure 2: Jordanian Defense Expenditure (US$ Billion), 2014-2023 26 Figure 3: Defense Expenditure, Excluding US Aid (US$ Billion), 2014-2023 28 Figure 4: US Military Aid to Jordan (US$ Million), 2014-2023 28 Figure 5: Jordan - Defense Budget Excluding US Aid vs Jordanian Defense Expenditure Including US Aid (US$ Billion), 2014-2023 29 Figure 6: Jordan - GDP Growth vs Defense Expenditures as a Percentage of GDP, 2014-2023 32 Figure 7: Jordan - Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 34 Figure 8: Jordan - Capital Expenditure Allocated vs Total Including US Military Aid (US$ Million), 2014-2023 35 Figure 9: Jordan - Allocated Defense Capital Budget (Excluding US Aid) (JOD Million), 2014-2023 37 Figure 10: Jordan - Allocated Defense Capital Budget (Excluding US Aid) (US$ Million), 2014-2023 37 Figure 11: Jordanian Per Capita Defense Expenditure (US$), 2014-2023 38 Figure 12: Jordanian Homeland Security Expenditure (JOD Billion), 2014-2023 40 Figure 13: Jordanian Homeland Security Budget (US$ Billion), 2014-2023 40 Figure 14: Terrorism Heat Map, 2018 42 Figure 15: Terrorism Index, 2018 45 Figure 16: Benchmarking with Key Markets (US$ Billion / %), 2014-2018 vs 2019-2023 47 Figure 17: Benchmarking the World’s Largest Defense Spenders (US$ Billion), 2018 and 2023 48 Figure 18: Benchmarking the Region’s Large Defense Spenders as a Percentage of GDP, 2018 49 Figure 19: Jordan - Corvettes MRO Market Size (US$ Million), 2018-2023 51 Figure 20: Jordan - Survivability Modernization Market Size (US$ Million), 2018-2023 52 Figure 21: Jordan - Soft Body Armor Market Size (US$ Million), 2018-2023 53 Figure 22: Jordan - Defense Procurements in terms of Supplier Relationships, 2018 55 Figure 23: Jordan - Defense Imports, (US$ Million), 2013-2017 56 Figure 24: Jordan - Defense Imports by Country (%), 2013-2017 57 Figure 25: Jordan - Defense Imports by Weapon Category (%), 2013-2017 58 Figure 26: Jordanian Defense Export Trend (US$ Million), 2013-2017 59 Figure 27: Jordan - Defense Exports by Country (%), 2013-2017 60 Figure 28: Jordan - Defense Exports by Weapon Category (%), 2013-2017 61 Figure 29: Industry Dynamics - Porter’s Five Forces Analysis 62 Figure 30: Jordan - GDP per Capita (US$), 2015-2025 72 Figure 31: Jordan - GDP (US$ Billion), 2015-2025 73 Figure 32: Jordan - Exports of Goods and Services (LCU Billion), 2005-2014 74 Figure 33: Jordan - Imports of Goods and Services (LCU Billion), 2005-2014 75 Figure 34: Jordan - Gross National Disposable Income (US$ Billion), 2005-2012 76 Figure 35: Jordan - LCU per US$, 2015-2024 77 Figure 36: Jordan - Market Capitalization of Listed Companies (US$ Billion), 2005-2012 78 Figure 37: Jordan - Market Capitalization of Listed Companies as a Percentage of GDP, 2005-2012 79 Figure 38: Jordan - Total Government Cash Surplus/Deficit as a Percentage of GDP, 2005-2012 80 Figure 39: Jordan - Goods Exports as a Percentage of GDP, 2005-2013 81 Figure 40: Jordan -Goods Imports as a Percentage of GDP, 2005-2013 82 Figure 41: Jordan - Services Imports as a Percentage of GDP, 2005-2013 83 Figure 42: Jordan - Services Exports as a Percentage of GDP, 2005-2013 84 Figure 43: Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 85

KADDB