Strategy Page explains why some of the most lucrative customers for high-tech weaponry are Arab nations:
Britain has been quite successful selling their new Typhoon fighter to Middle East nations. Two years ago Saudi Arabia bought 72 Typhoons from Britain. That was followed by an order for 12 from Oman and now the UAE (United Arab Emirates) is negotiating the purchase of 60 of these expensive aircraft. This is big money, as the aircraft have a basic price of $65 million each and there are many ways to greatly increase that. For warplanes sold to Arab Gulf states there is an additional bonanza. The biggest additional cost is providing support services and personnel to keep the aircraft operational. The Typhoon manufacturer, BAE Systems, is energetically recruiting qualified maintenance personnel to keep these aircraft flying. This a much larger profit center for Arab customers than for anyone else. Few local Arabs will be recruited for this work and most of these technicians will come from the West. That is very expensive. Why can’t locals be found for these high paying jobs? The reason is simple; there are few Arabs qualified or even interested in such exacting work. This is a common problem in the Middle East.
For example, the unemployment rate in Saudi Arabia is 12 percent and many of those men are unemployed by choice. Not even counted [are] most women, who are barred from most jobs because they are women. Arab men tend to have a very high opinion of themselves, and most jobs available, even to poorly educated young men, do not satisfy. Thus most Saudis prefer a government job, where the work is easy, the pay is good, the title is flattering, and life is boring. Thus 90 percent of employed Saudis work for the government. In the non-government sector of the economy, 90 percent of the jobs are performed by foreigners. These foreigners comprise 27 percent of the Saudi population, mostly to staff all the non-government jobs and actually make the economy work. This means most young Saudi men have few challenges. One might say that many of them are desperate for some test of their worth, but a job in the competitive civilian economy does not do it, nor does the military.
The Saudi employment situation is not unique. The UAE (United Arab Emirates) has foreigners occupying 99 percent of the non-government jobs. The unemployment rate is 23 percent, but only a tenth of those are actually looking for a job. A survey indicated that most of the unemployed are idle by choice. Kuwait is more entrepreneurial, with only 80 percent of the non-government jobs taken by foreigners. The other Gulf Arab states (which have less oil) have a similar situation.
