"Iran Defence & Security Report 2015" Published

We expect Iran to reach a nuclear deal with the P5+1 powers in 2015, leading to a lifting of sanctions over coming quarters. This will facilitate a return to economic growth; however, progress will slow, and Tehran's military spending will therefore remain modest on a regional comparison in the short-term. That said, demand for defence equipment will be strong, as Iran continues to provide assistance to Shi'a groups across the region; seeks to narrow the gap to rival Saudi Arabia's more technologically advanced military; and invests in weapons systems to protect against a potential US/Israeli attack. Meanwhile, the government remains committed to achieving its goal of military self-sufficiency. Iran has a large number of domestic defence companies, capable of manufacturing products such as small arms, tanks, missiles and military electronics. The lifting of sanctions will eventually enable sector exports, creating trade opportunities for local manufacturers, and allowing these to partner with foreign firms to benefit from technology transfer.

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