French exports of military equipment fell by 70 percent from 2022 to 2023
French arms exports fell to €8.2 billion in 2023 after reaching a record high of €27 billion in 2022. The 2022 record was due to an order for 80 Rafale fighter jets from the United Arab Emirates, worth just over €16 billion. "After an exceptional year in 2022 due to the export of the Rafale to the United Arab Emirates, 2023 was a more balanced year," commented Armed Forces Minister Sébastien Lecornu.
In 2023, an order came into effect for 18 Rafales by Indonesia for €2.6 billion, and several contracts worth more than €200 million (Caesar guns for Lithuania, corvettes for Angola and drones for Greece), supported by a stable base of contracts, each worth less than €200 million. This decline comes at a time when global military spending will have saw its biggest increase in a decade by 2023, reaching 2,400 billion dollars due to ongoing conflicts, according to the Stockholm International Peace Research Institute (SIPRI). However, according to the report, the value of orders promises to be much higher for France in 2024 than in 2023, thanks in particular to a contract for four submarines signed between Naval Group and the Netherlands, or the order for 12 Rafales placed by Serbia.
French exports of military equipment amounted to €8.2 billion in 2023
Last year, total French exports of military equipment amounted to €8.2 billion, well below the €11.7 billion figure for 2021, and even more when compared to €27 billion in 2022 (compared to 2022 the sharp decline is nearly 70%). Over the period 2014–23, only 2017 and 2020 were less successful, with orders worth €6.9 billion and €4.9 billion respectively. Among the top ten customers for France's Defense Technological and Industrial Base (DTIB) in 2023, Indonesia tops the list, thanks to the implementation of the aforementioned contract for a second batch of 18 Rafales worth €2.6 billion. Once again, Dassault Aviation's fighter-bomber carries a lot of weight, with this order accounting for around 30% of the total. This latest tranche of 18 Rafales for Indonesia follows the entry into force in September 2022 and August 2023 of the first and second tranches of 6 and 18 Rafales, thus completing the number of aircraft on order for Indonesia under the contract signed in February 2022 for the acquisition of 42 Rafales.
Saudi Arabia with 552 million and India with 488 million come next. Surprisingly, Angola follows these two countries which has ordered three corvettes based on the Combattante BR71 MKII from the CMN shipyard, via the Abu Dhabi Ship Building group. It is a new-generation corvette, 70.30 m long and 11 m wide, with a speed of 30 knots thanks to four diesel engines and four waterjets, it is designed to carry out defense and combat operations in the coastal zone, as well as patrolling, control and intelligence missions. The Combattante incorporates 3D radar, electronic warfare equipment, a cannon and ground-to-ground and ground-to-air missile systems.
Exports and support to Ukraine
Ukraine with €363 million completes the list of French major exports for 2023. "Today, arms deliveries to Ukraine are particularly visible, because they materialise, qualitatively and quantitatively, the effort made by France and its partners to help an attacked state to defend itself according to Article 51 of the United Nations Charter. They are mostly based on the transfer of equipment from our Armed Forces," Ministers Lecornu said in his Report to Parliament on France’s arms exports in March.
So far, France has delivered military equipment worth a total of over 3 billion euros to Ukraine; 2.1 billion euros to the European Peace Facility (EPF), representing military support worth more than 5.135 billion euros between February 24, 2022 and May 1, 2024. This financial effort is accompanied by determined training efforts, with almost 12,000 Ukrainian soldiers already trained by the armies in Poland and France. For example, in the initial phase of the conflict, deliveries of CAESAR guns contributed to a collective effort by the countries supporting Ukraine to halt the offensive and rule out the scenario of a victorious blitzkrieg. Subsequently, the need evolved towards ground-air defense, which was met by deliveries of Mistral, Crotale and Mamba systems with their Aster missiles, to counter missile and drone attacks.
Decline in French arms exports is disappointing
"While 2023 may seem relatively modest in terms of new orders, this does not reflect a fundamental trend: trends in our exports need to be assessed over longer time scales, as the annual balance sheet fluctuates widely, depending on the number and value of major contracts that come into force during the year," explains the French Ministry of the Armed Forces. That said, this decline in French arms exports is disappointing for the country, given that global military spending has reached a record level of 2,443 billion dollars or +6.8% in real terms in 2023. NATO members alone accounted for 55% of this total or 1341 billion dollars. Moreover, in recent years, the priority of the French DTIB has been to increase the level of its orders from European Union member countries.
In 2023 only Greece is among its top ten customers, with an order for Patroller tactical UAVs by Safran, which is designed to carry out intelligence, surveillance and targeting missions. It can be operated for external operations as well as homeland security and maritime surveillance missions. It is equipped with the high-resolution Euroflir 410 EO/IR pod, combined with a COMINT (COMmunication INTelligence) sensor or a Synthetic Aperture Radar (SAR) detecting moving targets. Based on this configuration, Patroller contributes to the protection of troops in the field. It provides data on tactical situations, while also conducting electronic warfare operations.
It has to be said that competition on the European market has intensified. In addition to the United States, which can still expect to win a large number of contracts, judging by the frequency of notices issued by its Defense Security Cooperation Agency (DSCA), France has to contend with Israel (in the field of artillery, air defense, electronics, anti-tank missiles) and South Korea (in the field of MBTs, artillery, munitions, etc.), which is very active in Poland and Romania. However, 2024 looks set to be a better year, with the Netherlands ordering four Black Sword Barracuda submarines, Serbia signing a contract for 12 Rafales and Estonia and Armenia buying CAESARs.
