Singapore shooting-range builder Starburst to gain from Mideast unrest

Starburst, a Singaporean builder of shooting ranges, expects revenue to rise fivefold as Middle East defence spending surges following the Arab Spring uprisings.

The company was pursuing as many as six contracts to provide firearms training facilities to countries including the United Arab Emirates, chairman Edward Lim said.

Projects in the region might drive sales in five to six years to S$100 million (HK$620 million) from S$21 million last year, he said.

Starburst has been Singapore's best-performing stock since its listing on July 10, soaring 139 per cent by Friday. The Straits Times Index rose 1.5 per cent in that span.

"After the Arab Spring, countries in the Middle East are starting the implementation of compulsory military service," Lim said. "They need to build new shooting ranges to accommodate the increase in military personnel."

No region has seen a faster increase in defence spending than the Middle East, with Saudi Arabia boosting its military and security budget by 21 per cent year on year this year to US$81 billion, according to IHS Jane's. Revolts from late 2010 to 2012 driven by the world's highest youth unemployment rate ousted leaders including Egypt's Hosni Mubarak, Libya's Muammar Gaddafi and Tunisia's Zine el-Abidine Ben Ali.