Abu Dhabi: A number of new projects related to defence and aerospace sectors will be executed in the UAE as the country focuses on diversification of economy and enter into new areas of industry.
A top official from Tawazun Economic Council said at least four defence projects will start operating this year.
“In the pipeline we have about 20 projects and four to five of them will be executed this year. There will be some announcements during International Defence Exhibition and Conference (Idex) next week,” said Matar Ali Al Romaithi, chief officer of Tawazun Industrial Development Unit on the sidelines of Abu Dhabi International Offset Conference on Wednesday.
He said some of the projects will be government owned in a joint venture with international defence contractor or a private sector owned in partnership with an international firm.
“We are talking about big contractors. There are also mid level contractors who are approaching us. One of the big companies said they are ready to create new projects. The UAE defence industry is set to grow in the coming years.”
He did not disclose the value of the projects and said they are still working on it.
“We work closely with the UAE Armed Forces and have joint committees related to technical aspects and business development. We are looking at more innovative ways and technology related industries in defence and aerospace.”
Talking about the offset programme in the country, he said it is benefiting the UAE nationals as well as the business community.
“The UAE nationals are considering entering into industries other than government sector. It is also providing opportunities for businessmen to foray into different sectors. Earlier it was just trading and construction, now they are entering into industrial sectors and advanced industries.”
Currently, the industrial sector’s contribution to the UAE’s GDP is estimated at 10 to 11 per cent. By 2020, this figure will hit 20 per cent, and by 2025 it will reach 25 per cent.
At the beginning of this year, the Emirates Defence Industries Company (Edic) was established as the UAE’s first integrated national defence supplier. Edic is a collaboration between Tawazun and Mubadala designed to create a defence manufacturing powerhouse.
The company this week announced that there will be a second and third phase of integration to bring in more defence related companies under one platform.
Speaking at the conference, Saif Mohammad Al Hajeri, chief executive officer of Offset Programme at Tawazun said the country is now supplying military equipment, systems, components and hi-tech programs which are made in the UAE to other countries and to the leading OEMs.”
“Additionally, the UAE has put in place the needed critical success factors for this, including dedicated regulations, business environment, infrastructure, supply chain, and the right stakeholder involvement.”
He said international defence contractor partners will continue to play a crucial role in the UAE’s growth.
Established in 1992, the Tawazun Economic Council has been instrumental in growing manufacturing based businesses. It has also driven the development and capacity of UAE nationals in innovation, research and development and design.
