GCC countries spread DRS Technologies orders following oil price collapse

Abu Dhabi: Gulf Cooperation Council (GCC) countries, including the UAE, have asked US defence contractor DRS Technologies to change order schedules following last year’s oil price collapse.

“We have had some discussions about stretching programmes rather than buying all at once,” said DRS vice-resident William Guyan at the International Defence Exhibition and Conference in Abu Dhabi on Sunday.

DRS Technologies is owned by Italian conglomerate Finmeccanica.

Last year’s oil plunge that saw oil prices lose almost half their value in the second half is expected to cost big GCC military spending states around $300 billion this year, according to the International Monetary Fund.

Global benchmark Brent crude closed up 0.02 a per cent on Friday at $60.22 a barrel, down on last June’s high of $115.

While Gulf countries are looking to spread out their costs, Guyan said they’re not cancelling orders despite the significant loss in revenue represented by the oil collapse.

“[There is a] high level of threat and crisis in the world … defence buys aren’t luxury buys there necessity buys,” Guyan said.