Business | General

AMMROC to earn 45% of revenue from Middle East after 2015

Defence-related firms to export products, services to the region in the next three to five years

  • By Deena Kamel Yousef Staff Reporter
  • Published: 18:33 February 17, 2013
  • Gulf News

  • Image Credit: Abdul Rahman/Gulf News
  • The delegates from various countries tour the pavilions during the opening of Idex 2013 at Adnec in Abu Dhabi.
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Abu Dhabi: Mubadala, the Abu Dhabi-based investment and development company, said it aims for its defence-related companies to begin exporting products and services to the region within the next three to five years.

Seven defence-related companies under Mubadala participated at Idex yesterday covering the aviation, maritime and technical services.

“Within three to five years, we will become more independent and export to the region. Then we can say that we achieved significant progress and become solid,” Homaid Abdullah Al Shemmari, Mubadala’s executive director of business development at the Aerospace Unit, told Gulf News.

As part of this plan, the Advanced Military Maintenance Repair and Overhaul Company (AMMROC), part of Mubadala’s defence-related network, should begin to earn 45 per cent of its revenue from the Middle East markets after 2015, he said. It currently provides about 90 per cent of its services to the UAE Armed Forces.

AMMROC is the fastest growing company of the seven defence firms, registering 75 per cent growth year on year in 2012, he said.

Al Taif, which provides life-cycle support for defence systems in the UAE and the Gulf, will also make a greater push into the Gulf market in 2013-2014 as part of the regional growth strategy, he said. The company registered 15 per cent growth year on year in 2012.

Idex is a major platform for Mubadala to promote its defence exports in the regional and international markets, he added.

“We are talking to a lot of local entities and will focus our talks with international companies that can market our services outside the UAE, in Europe and the US,” he said.

Mubadala will announce five deals during Idex, he said, but would not reveal any details.

“Idex to us represents the perfect platform. Every year it gets bigger and has more attention…to have such a world-renowned exhibition in our backyard is the perfect opportunity…it’s the perfect platform to say ‘here’s the local content’,” he said.

The local defence industry depends on a “strategic alignment” with the government that places its orders from them, he said.

Also participating under Mubadala’s defence companies at Idex were Bayanat for mapping and surveying services, Injazat Data Systems, Horizon Flight Academy, Al Yah Satellite Communications Company (Yahsat) and Abu Dhabi Ship Building.

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