Arms industry to help boost exports

Abu Dhabi: The UAE is building its arms manufacturing industry to help boost the country's defence and to export to friendly neighbours.

Last week Burkan Munitions Systems, one of the UAE's largest arms manufacturers, secured a Dh1 bilion loan to fund its expansion that will boost its arms manufacturing capacity significantly.

The company plans to become a more successful enterprise that will secure funds on more commercial terms, rather than seek shareholder support, going forward.

A top Burkan Munitions Systems official told Gulf News it has succeeded in meeting the needs of the UAE's armed forces by supplying various types of ammunition and by maintaining and recycling used munitions. The company will be able to supply orders within agreed deadlines, Saeed Bin Khadim Al Mansouri, General Manager and CEO of Burkan Munitions Systems, told Gulf News in an exclusive interview.

"Burkan Munitions Systems, which owns the first medium and heavy-duty ammunition manufacturing facility in the UAE, is seeking to meet and supply the needs of the national armed forces as well as the GCC countries," Al Mansouri said.

"We are continuing our efforts to acquire modern technology to develop and introduce new types of machines according to the needs of customers," he added.

"The plant, which is the first of its kind in the UAE and the Gulf region, is able to produce, test and assemble various types of ammunition, including aircraft bombs, rockets and ammunition for artillery, infantry and naval forces."

The defence budget of the GCC countries and Jordan combined is expected to be $68 billion (Dh250 billion) next year, according to the latest report by research firm Frost and Sullivan.

Defence spending

This is expected to grow to about $80 billion [Dh300 billion] by 2015. It is expected that the overall defence spending in the Middle East will cross $100 billion by 2015.

The biggest spender in the Middle East is Saudi Arabia. It spent about $41.2 billion on defence last year.

The Middle East defence market constitutes three per cent of the total global defence budget. With oil prices around $90 per barrel, the Gulf states are not expected to slow their defence spending.

Burkan Munitions Systems has been able to set aside an environmentally safe area to dispose of all waste from explosives and ammunition, using the latest techniques. This puts Burkan at the forefront of companies that exercise best practices in the armament industry using the best technology that ensures reduction of waste as well as making it environmentally friendly, he said.

Al Mansouri added, "The UAE's armed forces are a strategic partner as well as the largest customer of Burkan. However, the GCC states are the company's future market. The company recently received funding of Dh1 billion from First Gulf Bank to continue its development to launch new products."

He also explained that the development plan includes the establishment of research laboratories and the testing and commissioning of new products to ensure quality and to match the required specifications for all types of munitions. This will be done in cooperation with specialised international companies.

Modern technology

Al Mansouri pointed out that Burkan Munitions Systems is a joint venture between the Tawazun Holding Corporation and Al Jaber Trading and Rinmital AVI Munitions of Germany.

The company is committed to continuing its research and development efforts to keep pace with modern technologies in the munitions industry. And he pointed out that the scope of work covers a broad spectrum of research, design and development between users and meets the requirements of effective risk management.

Al Mansouri said, "The health, safety and protection of workers during the manufacturing process is one of the first priorities, as it requires a great deal of specialised knowledge and training of crews to ensure security and safety."

The factory also provides employment and training opportunities for UAE nationals in areas of advanced technology such as research and development, chemical and mechanical engineering and marketing, in addition to administration and finance.

It also contributes to supporting the country's economy through the export of technology and products to foreign markets, he said.

Project

Tawazun Holding announced that this large project by Burkan Munitions systems has been able to achieve its objectives successfully by implementing the vision of the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan, and the directions of Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, to establish a national industry to provide the requirements of our armed forces instead of relying on foreign imports.

The project confirms Abu Dhabi 2030 vision. The continuation of development and modernisation of this project in collaboration with the best international companies specialised in order to be able to meet all the needs of our armed forces and to contribute to the national economy and the provision of development requirements and to provide more job opportunities for citizens to implement the Plan of Abu Dhabi 2030.

Tawazun Holding partner with the Burkan Munitions Systems announced that products are currently targeted for the domestic market and will move on during the next stage to provide the requirements of the Gulf and regional markets, as products are highly accurate and efficient with best international standards.

UAE fourth in expensiture

UAE spending on Homeland Security is set to double from $5.5 billion to $10 billion in the next 10 years, according to latest estimates. Also the country ranked fourth worldwide in total arms expenditure at approximately $6.5 billion set in the 2005 to 2009 period.

Homeland security, biometric technology, perimeter security and access control are expected to be amongst the key areas of interest at Intersec trade fair and conference 2011, the trade and networking event for commercial security, homeland security and policing, safety and health, fire and rescue and aviation security in the wider region.

According to organiser Epoc Messe Frankfurt, security and safety concerns are increasingly gaining the attention of government and corporate managements, as awareness grows about the need for greater preparedness to combat and prevent terrorist and criminal threats. As a result, the market for homeland security, surveillance systems and policing gear and equipment in the region is on a strong growth path.

The key drivers of this growth are expected to be biometric security, IT and infrastructure security and border and perimeter protection. The Middle East region is an increasingly significant market for homeland security with heightened awareness on the needs for enhanced safeguards to protect vital infrastructure and installations which are continually developing.

Recent incidents have underlined the importance of CCTV and video surveillance in sensitive areas. As a result, Dubai Police have announced that it will spend a further $130 million plus to enhance CCTV surveillance in blind spots over the next few years.

"While no one can guarantee 100 per cent security, being prepared for any eventuality is vital," Major General Dr. Mohammad Bin Fahad, Director of the Dubai Police Academy, told reporters at a press conference in Dubai. "Events such as Intersec play a key role in underlining the importance of maintaining heightened levels of readiness and contingency."

"The emergency response strategies and experiences of security personnel from other parts of the world can teach us a lot about how to respond to difficult situations," he said. "Learning from these and adapting our response and readiness drills accordingly will empower us with the expertise to meet any challenges," he added.

Intersec 2011, which takes place at the Dubai International Convention and Exhibition Centre from January 16 to 18, reflects the trends and developments in the industry and is a must-attend event for professionals, key influencers, security and government agencies, legislators, suppliers and service providers.