Covid-19 Subdues Growth in Global Arms Industry

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The global defense industry is expected to grow this year but at its lowest rate since 2013, with logistical and economic hurdles disrupting sales, development and manufacturing

Coming after completion of the accords between Israel, the U.A.E. and Bahrain, this year’s gathering held promise in the arms industry as the first IDEX attended by Israeli defense companies, marking a major shift in the region’s defense complexion.

Many companies that succeeded in attending the conference brought with them lessons of the difficulties of the pandemic. One of the few Israeli companies represented at IDEX, small-arms manufacturer Emtan Karmiel Ltd., halted production at its factory for several weeks and faced shipping costs that ballooned from $5 to $20 per kilogram.

An executive at the Edge, an Emirati defense conglomerate, said that some subsidiaries adopted what amounted to a staggered shift schedule in order to continue production while accommodating strict governmental health regulations. China was among countries demonstrating resilience in the pandemic, with its 2021 defense budget marking an increase of 6.8%, to $209.4 billion, in the first year of a new five-year plan.

 

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