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BMI View: Iraqi defence expenditure will increase substantially over our forecast period, amid Baghdad's
efforts to counter terrorism, reduce elevated levels of violence and unrest, and regain control of borders
and airspace. The country's armed forces are in need of a range of equipment - particularly in the ground
and aerospace segments; however, operational expenses will continue to take up a large share of the
overall defence budget, limiting funds available for new procurement. Nevertheless, Baghdad will likely be
able to purchase urgently needed equipment with military aid or flexible payment arrangements offered by
its strategic allies. Iraq remains wholly reliant on foreign suppliers to meet its armed forces' requirements
given the complete lack of a domestic defence industry - a situation which we do not expect to change over
the next decade.
- In August 2016, the US Department of Defense (DoD) approved the delivery of an undisclosed number
of Boeing ScanEagle UAS to Iraq under a USD8.3mn contract.
- In the same month, the Iraqi air force (IqAF) took delivery of another Beechcraft King Air 350 extended
range (ER) aircraft modified with intelligence, surveillance and reconnaissance (ISR) capability. As the
DoD has previously issued a notification of a 24 King Air 350ER aircraft requirement from Iraq, more
deliveries are likely to follow over coming quarters.
- In April 2016, IqAF reportedly received another three Sukhoi Su-25 ground attack aircraft from Russia.
- Also in April 2016, the US DoD announced it would deliver 60 Textron Commando Select armoured
vehicles to Iraq under a USD66mn contract.