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The international arms trade, details
of which appear on pages 296–298 of The Military Balance 2001–2002,
fell significantly in 2000, with the value of deliveries falling
to $29.3bn from
$37.2bn in 1999. The Middle East continued to spend more on arms
imports than any other region, accounting for at least 40% of
the world market. Saudi Arabia, the largest Middle Eastern customer,
took deliveries worth $7.3bn; a slight increase over 1999. However,
with no significant new transfer agreements signed in 2001, and
the Saudis' declared intention to concentrate resources on personnel
and training, this figure is unlikely to increase in coming years.
Amongst other developing nations, China received deliveries worth
$1.6bn, Egypt $1.3bn and Taiwan $1.2bn.
The US once again accounted for nearly 50% of global arms deliveries.
Among its major exports in 2000 were 53 F-16 aircraft and 350
armoured combat vehicles. The UK remained the second-largest
exporter, with 17.4% of deliveries, including a batch of 76 Challenger
1 main battle tanks and the final five of 16 Hawk aircraft sold
to Indonesia. Russia reported increased deliveries in 2000. Its
main customers remain China and India and the delivery of destroyers
and submarines made naval equipment Russia's main export.
New orders rose in 2000 for the third year running, with arms
transfer agreements totalling $36.8bn. The US accounted for half
of all new orders, primarily as a result of the signing of a
licensed commercial agreement for the sale of 80 F-16 combat
aircraft worth $6.4bn to the United Arab Emirates and agreements
to upgrade Apache helicopters for both Egypt and Israel. Russia
rose to second in the rankings following a licensed production
agreement with India, valued in excess of $3.5bn, for 140 Su-30MKI
combat aircraft, and a separate agreement for the sale of 310
T-90 main battle tanks. France was the leading European country
in attracting new orders. The sale of six Lafayette class frigates
to Singapore pushed their total sales agreements to $4.1bn.
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