Saab, the Swedish defence and aviation group, has set up an office in Abu Dhabi to tap the growing hardware needs of Gulf countries that are looking for sources outside the United States following the events of September 11, 2001, officials said.

As part of this move, the group's fighter jet Gripen will make its first public appearance in the Middle East at next month's Dubai Air Show.

Peter Miller, president of Saab International Middle East, told Gulf News yesterday, his company was in talks with Gulf governments to supply the latest generation fighter aircraft.

"A lot of the GCC combat fleets are ageing and need either upgrades or expensive maintenance. We are offering a latest combat aircraft at an affordable price.

"We are having close negotiations with the UAE authorities. However, defence contracts take a lot of time to materialise. "We hope to announce some deals at Dubai 2005."

Traditionally, the Gulf governments rely on the the United States for their defence supplies. However, there appears to be some re-thinking in the region.

At the same time, European defence aviation companies are working aggressively to meet the increased hardware needs of Gulf countries since their relationship with the United States has come under some strain.

Miller said the Swedish Government had relaxed its objection to aircraft and defence sale to Middle East countries except to some states such as Iran.

Gripen, which has an annual turnover of $2.24 billion, is yet to secure a sale in the Middle East.

Saab display pilot Owe Wagermark, communications director for Gripen International, said, "We plan to participate in the daily flying display with a single seater, the other will be on the static park with a complement of weapons while the dual seater will be used for special flights."

Gripen is used by the Swedish and Czech air forces and has been ordered by the South African and Hungarian air forces.