Dubai: The UAE's new offset policy guidelines have prompted a large number of defence suppliers to signal their long-term commitment to supporting the UAE's plans to develop an industrial manufacturing base by signing new long-term agreements according to the UAE Offset Program Bureau.
The Offset Program Bureau (OPB) was established in 1992 to oversee the offset programme in the UAE. It is mandated to set up joint ventures, as well as to invest in commercial, industrial, financial and educational projects and to create investment funds in the UAE and abroad.
Saif Mohammad Al Hajeri, the CEO of the Offset Program Bureau, said: "Over 70 per cent of defence contractors with offset obligations have transmitted their commitments to the new policy, among them Boeing, Raytheon, EADS, Fincantieri, Nexter, MBDA, Lockheed Martin and Rheinmetall."
In June 2010 the UAE launched an updated set of offset guidelines to support its plans for an industrial base that delivers sustainable economic and social development through industrial partnerships, capacity building, technology and knowledge transfer and creation of jobs for the UAE citizens. A two-year timetable was established to enable defence suppliers to bring their offset commitments over to the new framework.
Gwen Kopsie, Director of International Strategic Partnerships for Boeing Defense, Space and Security, said: "Boeing supports the UAE's new offset policy which sets out to build a strong framework for long-term co-operation with its defence contractors to build a ‘home-grown' industrial base. The new policy provides flexible fulfillment criteria and facilitates the implementation of projects through active engagement by defence contractors at an early stage. We believe we can create strong and sustainable partnerships with UAE companies to deliver the objectives of the offset programme."
The new UAE offset guidelines were developed following extensive research to identify the challenges defence contractors faced in implementing their obligations under the UAE offset programme.
The new policy promotes greater partnership with defence companies, through long-term planning and increased customisation in programming to maximise the fulfillment of offset obligations.
Gérard Griseri, Chief Executive Officer of Nexter, the French arms manufacturer, said: "We have already built a long-term partnership with the UAE Armed Forces. The new offset policy will help us improve this relationship and contribute to the local economy through the transfer of technology and know-how to UAE companies."
The new guidelines tighten the area of focus for programmes to reflect defence contractors' expertise and attract defence-related technologies and know-how. These centre around building capabilities in two areas: the manufacturing of end-user products (such as strategic technical systems, infrastructure systems,
Joost van Gemert, Head of Corporate Offset at Rheinmetall AG of Germany, said: "The main change for us is that we have much more flexibility in the programs that we propose. Offset credit is now given for a range of elements, not just the cash investment or the profit made. Knowledge transfer, training programmes and technology transfer are now recognised as valuable instruments as well. This certainly plays to our strengths."
Matar Ali Al Romaithi, Director of Industrial Development at OPB, said: "The UAE offset policy has become more flexible for defence contractors and easier to implement, allowing greater involvement from an earlier stage in the planning process. The new framework aligns more closely with the UAE's long-term economic vision to achieve growth through a knowledge-driven economy, industrial partnerships, transfer of technology, capacity building, and creation of jobs for UAE nationals. We are confident that our new policy enables our defence partners to develop strong, long term and jointly beneficial partnerships with the UAE."
