Defence firms wait for Idex deals to roll in

They came, they held displays and now they will be waiting for the orders to come through. And the early trends are very encouraging indeed, said most exhibitors at Idex 2001 which closed yesterday after five days of frenetic activity.

Nearly Dh740 million worth of deals was officially announced during this year's Idex, including a Dh515 million UAE deal with EADS Casa for four C-295 maritime patrol aircraft. With the defence spending of the Gulf states estimated at $30 billion, the global armaments industry definitely sees prospects over the next five years at the very least.

One reason they suggest for their optimism is the ageing equipment with most of the defence forces in the Middle East, which were mostly bought at the height of the tensions of the Gulf War in 1990 or in the immediate aftermath.

As John Bean, director of the F-16 Block Programme ay Lockheed Martin, said, "We see not so much in military acquisition as much as investments in upgrading and modernisation of military equipment."

Between 1997 and early 1999, weak government revenues on account of lower international oil prices put the brakes on military spending. According to defence industry insiders and analysts here, the Middle East will be hitting the markets to strengthen their naval and aerial forces. In step will be the operational upgrades to the land forces.

Also huge investments will go towards building a "smart" army capable of waging and winning electronic warfare. To attain this status, the regional forces will be looking for integrated, state-of-art, command-and-control systems.

GEC, the organiser, said that some of the biggest countries and companies have already signed up for Idex 2003 which is expected to pull in a greater participation than this year.Some 860 companies from 42 countries took part in Idex 2001 which has become a specialised show which is not only confined to aspects relating to defence but also training and technical aspects which have combined to make it unique.

On the UAE deal, a spokesman said, while the schedule of the delivery is being worked on, the aircraft could come fitted with advanced anti-submarine detection system. "It will be a complete package, but it's up to the people involved with the project to determine what the full system would be," said Staff Brigadier Obeid Al Kutbi, Idex spokesman. "All such details will be announced soon."

EADS Casa edged out Italy's Alenea (with the ATR 42 and ATR 72) and a consortium of Canada's Bombardier and France's Thales (with the Dash 8). In all, ten companies bid for the contract. Another major order annou-nced was for the supply of six, 60-metre long vessels equipped with advanced rocket systems for the UAE Naval Forces.

The contract will be worked on jointly by Abu Dhabi Shipbuild-ing Co and France's Construc-tions Mecaniques d Normandie (CMN) at the Mussafah Indus-trial Area. The latter will also pick up equity in ADSB, though the exact stake is yet to be finalised.

"The vessels are to be delivered by the year end as per the current schedule. The awarding of this contract to ADSB shows our commitment to encouraging the local manufacturing industry," added Al Kuthbi.

In another deal valued at $11 million, the local forces will buy 300 vehicles of different makes from 11 different UAE firms. Other contracts awarded were to Thales for communication systems valued at $4 million, Norway's Kongsberg to develop and modernise the microwave communication equipment for $3 million and UK's Mondiel to import engineering explosives for $1.5 million.

Wam adds: Millions of visitors flock to the UAE every year because it enjoys security and stability, Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Information and Culture, said yesterday.

"More than three million tourists are attracted to the UAE every year because it enjoys stability and security. We will work to attract more selective holiday makers in order to further consolidate the economic boom enjoyed by the UAE,'' he said during a tour of Idex 2001.

Idex has increasingly become attractive to many countries around the world, a fact indicated by the participation of 42 countries, the minister said. Hailing it as unique event, he said Idex has become a specialised show that is not only confined to defence aspects but also acts as a magnet for attracting prominent press people.

On the media participation, Sheikh Abdullah said it has been impressive and significant. "Idex attracts various sectors around the world and certainly media participation has helped to make the event a success and promote the UAE's image,'' he said. The minister added that Idex also provided an opportunity for various cultures to intermingle.