The principal focus of this report is the level of arms transfers by major weapons suppliersto nations in the developing world -- where most of the potential for the outbreak of regional militaryconflicts currently exists. The developing world continues to be the primary focus of foreign arms sales activity byconventional weapons suppliers. During the period of this report, 2000-2007, conventional armstransfer agreements (which represent orders for future delivery) to developing nations comprised66.6% of the value of all international arms transfer agreements. The portion of agreements withdeveloping countries constituted 67.7% of all agreements globally from 2004-2007. In 2007, the United States led in arms transfer agreements worldwide , making agreementsvalued at over $24.8 billion (41.5% of all such agreements), up significantly from $16.7 billion in2006. In 2007, the United States ranked first in the value of all arms deliveries worldwide , makingnearly $12.8 billion in such deliveries or 41.3%. General Trends in Arms Transfers to Developing Nations

The value of all arms transfer agreements with developing nations in 2007 was nearly $42.3billion, an increase from the $38.1 billion total in 2006 Chart 1 )( Figure 1 )( Table 1A ). In 2007, thevalue of all arms deliveries to developing nations ($17.2 billion) was lower than the value of 2006deliveries (over $21.4 billion), and the lowest total for the 2000-2007 period ( Charts 7 and8 )( Figure 2 )( Table 2A ). Recently, from 2004-2007, the United States and Russia have dominated the arms marketin the developing world, with both nations either ranking first or second for 3 out of these 4 yearsin the value of arms transfer agreements . From 2004-2007, Russia made nearly $39.3 billion,27.9% of all such agreements, expressed in constant 2007 dollars. During this same period, theUnited States made $34.7 billion in such agreements, 24.6% of all such agreements. Collectively,the United States and Russia made 52.5% of all arms transfer agreements with developing nationsduring this four year period. The United Kingdom, the third leading supplier, from 2004-2007 made$21.3 billion or 15.1% of all such agreements with developing nations during these years. Russia. Saudi Arabia ranked first among all developing world recipients in the value of arms transfer agreements in 2007, concluding $10.6 billion in such agreements. India ranked second inagreements at $5 billion. Pakistan ranked third with $4.2 billion in agreements. Arms Transfer Agreements With Developing Nations by Major Supplier,2000-2007
(billions of constant 2007 dollars)
Source: U.S. Government
 Figure 1. All data are for calendar years given.
This report is prepared annually to provide Congress with official, unclassified, quantitativedata on conventional arms transfers to developing nations by the United States and foreign countriesfor the preceding eight calendar years for use in its policy oversight functions. All agreement anddelivery data in this report for the United States are government-to-government Foreign MilitarySales (FMS) transactions. Similar data are provided on worldwide conventional arms transfers byall suppliers, but the principal focus is the level of arms transfers by major weapons suppliers tonations in the developing world.
Developing nations continue to be the primary focus of foreign arms sales activity byweapons suppliers. During the years 2000-2007, the value of arms transfer agreements withdeveloping nations comprised 66.6% of all such agreements worldwide. More recently, armstransfer agreements with developing nations constituted 67.7% of all such agreements globally from2004-2007, and 70.5% of these agreements in 2007.
The value of all arms transfer agreements with developing nations in 2007 was nearly $42.3billion. This was an increase from $38.1 billion in 2006. In 2007, the value of all arms deliveries to developing nations was $17.2 billion, the lowest total in these deliveries values for the entire2000-2007 period (in constant 2007 dollars).
Recently, from 2004-2007, the United States and Russia have dominated the arms marketin the developing world, with both nations either ranking first or second for 3 out of 4 years in thevalue of arms transfer agreements . From 2004-2007, Russia made nearly $39.3 billion, 27.9% ofall such agreements, expressed in constant 2007 dollars. During this same period, the United Statesmade $34.7 billion in such agreements, 24.6% of all such agreements. Collectively, the UnitedStates and Russia made 52.5% of all arms transfer agreements with developing nations during thisfour-year period.
In 2007, the United States ranked first in arms transfer agreements with developing nationswith $12.2 billion or 28.8% of these agreements. The United Kingdom was second with $9.8 billionor 23.2% of such agreements. Russia was third with $9.7 billion or 23%. In 2007, the United Statesranked first in the value of arms deliveries to developing nations at $7.6 billion, or 44.2% of all suchdeliveries. Russia ranked second at $4.6 billion or 26.7% of such deliveries.
In 2007, Saudi Arabia ranked first in the value of arms transfer agreements among alldeveloping nations weapons purchasers, concluding $10.6 billion in such agreements. India rankedsecond with $5 billion in such agreements. Pakistan ranked third with $4.2 billion.