The United States was unsurprisingly the source of the lion's share of conventional weapons traded in 2004. Many of the industry's biggest players are based there and they have huge capability in both manufacturing and research and development, which has kept the US at the forefront of arms production and sales since World War II.
Russia has been regarded as lagging behind the US and Western Europe in terms of arms development, but the adoption of more business-like practices has maintained its leading position, according to IISS analysts.
The UK's position high up the league table is in a large part due to BAE Systems' position as a world player, particularly in exports of aircraft like the Harrier and Hawk, but other less obvious products - such as sophisticated radar systems - have played their part too.
Israel has used military equipment sales as a useful subsidy for its own huge military expenditure, while Brazil's arms industry has done well from the provision of lower-tech equipment to some of its South American neighbours and other developing nations.
WHO IS BUYING?
According to the International Institute for Strategic Studies, the two biggest buyers of conventional military equipment outside the developed world are both Middle Eastern countries, a reflection, IISS analysts say, of increasing militarisation in the region and a tendency to invest in the most up-to-date systems.
China too has been heavily investing in its military, but for many countries in the table below - including India, Taiwan, Pakistan and South Korea - regional frictions account in large part for their high military expenditure.
| LEADING ARMS RECIPIENTS (DEVELOPING NATIONS ONLY) |
| Country* | Value of 2004 arms received (US $bn) |
| United Arab Emirates | 3.6 |
| Saudi Arabia | 3.2 |
| China | 2.7 |
| India | 1.7 |
| Egypt | 1.7 |
| Israel | 1.5 |
| Taiwan | 1.1 |
| Pakistan | 0.9 |
| South Korea | 0.8 |
| South Africa | 0.5 |
Source: Defence Analysis Department, International Institute for Strategic Studies/ US Congress
*Includes all countries except US, Russia, European nations, Canada, Japan, Australia, and New Zealand. |
WHO BUYS FROM THE UK?
Britain sells to some 86 countries around the world including Nigeria, Iraq and Pakistan, however its top customer is the USA, followed by Italy and then Middle East countries.
The biggest export is military aircraft and parts followed by guided weapons systems and their parts.
HOW MUCH DOES THE UK SELL?
In 2004, the value of the UK's arms exports was £1.4bn, according to government figures.
However, this figure does not include aerospace training and consultancy, valued at £3.3bn in 2003 by the Ministry of Defence in its most recent UK Defence Statistics report.
