By Stanley Carvalho and Nadia Saleem
DUBAI, Nov 6 (Reuters) - After sizzling with record jetlinerpurchases from Gulf airlines in recent years, next week's DubaiAirshow will be dominated by the presence of arms manufacturersas Gulf states weigh their security needs in a regionincreasingly on edge.
The Middle East's top aviation event won't be devoid of thecommercial swagger which dominated past shows, but regionalconflict, low oil prices and a trade dispute with U.S. airlinesmean the Nov 8-12 event is likely to be a more low-key affair.
"The focus will be on military for the reason that thesecurity environment in the region is deteriorating further,"said Mustafa Alani, director of defence & security at the GulfResearch Centre (GRC), a thinktank.
Security in the Gulf and wider Middle East is at its mostuncertain in years, with the region's conflicts sending hundredsof thousands of homeless into Europe and Islamic State expandingits anti-Shi'ite sectarian campaign of bombings from Iraq andSyria into the Gulf Arab states, Yemen, Libya and Egypt.
The region is the largest market driver in the industry withbillions of dollars spent annually on military equipment. Thefighting in Syria and Yemen may bolster demand for defencehardware, though few deals will be signed at the show itself.
A recent deal between Iran and world powers over thecountry's nuclear activities has rattled states on the otherside of the Gulf, while last week's Russian airliner crash inEgypt has increased the focus on security concerns.
"This will mostly be a military show," said RichardAboulafia, vice president of analysis at Virginia-based TealGroup, adding the focus would be on the UAE's fighter needs witha heavy Rafale and Eurofighter presence.
The UAE has been in on-off talks for 60 fighters withFrance's Dassault Aviation for Rafales and Britain'sBAE Systems for Eurofighter Typhoons.
DRONE DISPLAY
Regional arms buyers are also looking for surveillance andpatrol aircraft since militaries in the region are relativelyunder-equipped, relative to their requirement, Aboulafia said.
"Unmanned Aerial Vehicles or UAVs could be part of thatsolution too. So expect a heavy presence from people promotingthese," Aboulafia added.
In a first for any international show, according toorganizers, UAVs -- more commonly known as drones -- will betaking part in the flying display.
Key exhibitors include Lockheed Martin, Raytheon, Boeing and Dassault with new exhibitorsincluding Oshkosh of the U.S. and Turkey's Roketsan,maker of rockets and missiles including air defence systems.
The value of air power is not diminishing in the region asevidenced in Syria and Yemen and so investments will be in thatdirection -- fighters, helicopters, air transporters, drones,air refuelling, reconnaissance etc, said GRC's Alani.
Over 1,100 exhibitors are participating at the biennialshow, which will see 160-plus aircraft on display includingCanada's CSeries jetliner, looking for a much-needed sales boostas its manufacturer Bombardier addresses cash woes.
The Gulf's three big carriers announced orders with Boeingand Airbus for over 400 jets at the last Dubai Air Show in 2013.
But the expansion plans of Dubai's Emirates, Abu Dhabi'sEtihad Airways and Qatar Airways could slow as low oil pricescurtail investments and trade, according to some analysts.
Boeing has played down expectations of large new orders, butthere might be some big announcements.
"Never say never; there might be some surprises. You haveone of the fastest-growing airlines in the world here," an AbuDhabi government source said, declining to be more specific. (Additional reporting by Tim Hepher, William Maclean AndreaShalal and Katie Paul; Editing by Keith Weir)