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Defence sector: breaking down the barriers to private sector defence investment

24 October 2026 / Author(s): Rita Hunter , Malcolm Parry , Sharon Lewis , Emily Julier
Issue: November 2026 / Categories: Feature

Perceptions about defence investment, both from the public and business, have changed. There are now clear national priorities to direct public and private sector finance to defence and defence-related investments. There have been many conversations about how to apply sustainable finance to the defence industry, but fewer conversations about the existing structural and market barriers to investment in the defence sector. Below we look at the challenges of achieving transparency for defence-related investments and the key barriers to unlocking capital for defence investment, including issues around lending practices and taking security and how they can be addressed and unlocked.

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