Giat says UAE tank deal has no outstanding problems

French defence company Giat Industries has said that there are no outstanding issues with the UAE on the contract for Leclerc tanks, and that deliveries are proceeding towards "fulfilment"."There is no drama or fight involved in this deal as is being made out by the media. The contract is proceeding smoothly and clearly," chairman and chief executive Jacques Loppion said. "We have already completed 75 per cent of the deal with over 300 tanks delivered of the 400-plus contracted for. The rest will proceed towards fulfilment within the next two years.

"But there are certain interpretations of the contract that we are still discussing and which should be completed within the coming weeks," he added. Lt. General Sheikh Mohammed bin Zayed Al Nahyan, Chief of Staff of the UAE Armed Forces, was quoted as saying that deliveries were on track and that the Leclerc armoured battalion had performed admirably during its tour of duty in Kosovo.

The UAE and Giat signed the $3.62 billion deal in 1993 and deliveries began in 1995. They were to be completed by 2001. However, a disagreement reportedly arose as to who should pay for upgrades of the tanks. Giat suspended deliveries in January. This month the French defence ministry said talks have resumed and cooperation will get back to normal. Giat said it has no more obligations under the UAE Offsets programme.

Meanwhile Loppion said, "We are also in serious negotiations with Qatar and Saudi Arabia for similar deals. Both countries have traditionally used French-made tanks, which is why we are quite hopeful of succeeding this time too. "As for Jordan we have an order to supply ammunition. There are none, however, for any tanks." Giat is exhibiting at Idex, which runs until Thursday.

"The organising of this event for the fifth time is a reflection of the high status achieved by the UAE in the international arena," said Sultan O.B. Al Suwaidi, director-general of General Exhibitions Corp (GEC). "This is a reflection of the impressive reputation earned by Idex as one of the biggest defence exhibitions in the world. This is in addition to its highly important economic dimension."As the melting pot for the global defence industry in the Middle East, Idex gives decision-makers an opportunity to see the latest defence equipment under one roof.