How Is Gulf Defense Spending Reshaping the Industry?

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00:00I mean, you've got facilities and shipyards in a number of places around the world, notably France, Germany, the UK.

00:08And just for the benefit of our viewers, really, CMN stands for Construction Mécanique de Normandie,

00:14part of the broader CMN naval group, which is, I read, delivered more than 3,500 vessels

00:21and provided support to 48 different navies around the world over a period of around eight decades.

00:26So you're highly established players.

00:29Just before we start talking about your activities specifically,

00:34we've seen global defense spending increase significantly in the last few years, particularly here in the Gulf.

00:42And I'm assuming that means CMN naval is rather busy.

00:47We're very busy, sir.

00:49I think if you look at global defense spending today, it has surged dramatically.

00:53The last five years has seen global defense spending go from roughly $2 trillion,

00:58to almost $3 trillion today.

01:01And 10% of that is now being absorbed only by GCC states.

01:06If you look at global GDP and share of global GDP going to the fence,

01:11it has also gone from 2% to 2.5%.

01:15And with pressure from mostly the United States, many countries in Europe are now even going higher towards 3%

01:21and maybe the UK eventually 5%.

01:23So these are big tailwinds for the industry.

01:26And they're reshaping both defense landscape,

01:29channeling unprecedented resources towards modernizing and capability building

01:34that navies around the world, including in the Gulf, so badly lead.

01:38So these are big tailwinds for the industry.

01:40So these are big tailwinds for the industry.

01:41So these are big tailwinds for the industry.

01:42So these are big tailwinds for the industry.

01:43So these are big tailwinds for the industry.

01:44So these are big tailwinds for the industry.

01:45So these are big tailwinds for the industry.

01:46So these are big tailwinds for the industry.

01:47So these are big tailwinds for the industry.

01:48So these are big tailwinds for the industry.

01:49So these are big tailwinds for the industry.

01:50So these are big tailwinds for the industry.

01:51So these are big tailwinds for the industry.

01:52So these are big tailwinds for the industry.

01:53So these are big tailwinds for the industry.

01:54So these are big tailwinds for the industry.

01:55So these are big tailwinds for the industry.