{"id":38659,"date":"2015-03-01T19:27:55","date_gmt":"2015-03-01T19:27:55","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2015\/03\/01\/uae-contract-awards-favor-joint-ventures\/"},"modified":"2026-08-07T23:02:03","modified_gmt":"2026-08-07T23:02:03","slug":"uae-contract-awards-favor-joint-ventures","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2015\/03\/01\/uae-contract-awards-favor-joint-ventures\/","title":{"rendered":"UAE Contract Awards Favor Joint Ventures"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ABU DHABI \u2014 At this year&#8217;s International Defence Exhibition, United Arab Emirates-based defense companies received the lion&#8217;s share of the contract awards announced by the country&#8217;s armed forces.<\/p>\n\n\n\n<p>Of a total of 33 contracts worth $4.99 billion, Emirates-based companies received 21 worth $3.81 billion, French companies received deals worth $1.03<span class=\"rte rte-comment\">25<\/span> billion, and US companies came in third with $676 million, including a $618 million order for two Boeing C-17s.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many of the contracts went to joint-venture partnerships between UAE and foreign firms. This is no coincidence, said IDEX spokesman Maj. Gen. Obeid al-Kitbi.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;We have a clear strategy to establish strong relationships with specified companies in this field and set up joint ventures with companies to achieve our goals,&#8221; al-Kitbi said. &#8220;Based on the vision set out by the Deputy Supreme Commander Sheikh Mohammed Bin Zayed, our industry is getting stronger and we are investing in the future to have a strong industrial base in the UAE.&#8221;<\/p>\n\n\n\n<p>Abu Dhabi&#8217;s Nimr Automotive this year received a $330 million order for five variants of their AJBAN four-wheel-drive<span class=\"rte rte-comment\">4&#215;4<\/span> vehicles plus upgrades to 500 Nimr vehicles currently in service with UAE armed forces across the country. <\/p>\n\n\n\n<p>Based on South African designs, the Nimr vehicles are an example of a successful joint venture. In 2013, UAE ordered 1,800 vehicles from Nimr, which also notched sales that year to Libya and Lebanon, while deals for <span class=\"rte rte-comment\">and <\/span>manufacturing were made in Algeria and Jordan. <span class=\"rte rte-comment\">[I DON&#8217;T UNDERSTAND THIS SENTENCE. WERE THE TRUCKS SOLD TO LIBYA AND LEBANON MADE IN ALGERIA AND JORDAN? OR SOMETHING ELSE?]<\/span><\/p>\n\n\n\n<p>Another example is Tawazun Dynamics, which makes the Al Tariq air-to-ground precision guided weapon. A partnership between <span class=\"rte rte-comment\">the UAE heavy hitter <\/span>Tawazun and South Africa&#8217;s Denel <span class=\"rte rte-comment\">, the company <\/span>this year received a $416 million contract to supply precision-guided ammunition. <span class=\"rte rte-comment\">to the armed forces. <\/span><span class=\"rte rte-comment\">As well, <\/span>UAE firms Milipol International and the International Golden Group both have partnerships with international companies to provide munitions and howitzers.<\/p>\n\n\n\n<p>Meanwhile, AMMROC, a joint venture between Lockheed, Sikorsky and Emirates Defence Industries Co.,<span class=\"rte rte-comment\">mpany<\/span> has signed deals worth over $620 million this year.<span class=\"rte rte-comment\"> [THIS YEAR?]<\/span><\/p>\n\n\n\n<p>Giving contracts to companies with a foot in the UAE &#8220;provides more opportunities for research-and-development funding that is unburdened by export restrictions and accumulate to become a formula for success,&#8221; said aerospace and defense expert Aleksander Jovovic, with Washington-<span class=\"rte rte-comment\">, D.C.-<\/span>based Avascent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Companies that are hungry for research-and-development funding and have no export restrictions that are ready to export and open up foreign markets are going to be a good partner, but if any of those three points are more difficult it would turn customers like the UAE away,&#8221; Jovovic said. &#8220;When you look at what those guys have, they don&#8217;t normally have a large export base while compared to other countries where it would be a worry to give away intellectual property rights.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The magic formula, he said, is to create with someone else in your industry but not create competition.<\/p>\n\n\n\n<p>Jovovic added that while those with insufficient internal R&amp;D funding, few export restrictions and a keen desire to export <span class=\"rte rte-comment\">due <\/span>typically due to lean domestic markets can prove to be strong partners, the question remains: <span class=\"rte rte-comment\">for the UAE and others is always: <\/span>Do those partners bring the best technology or can those foundations be made best-in-class with additional investment?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;As usual, the likely answer is sometimes yes but often no. Then the question is whether that &#8216;sovereign&#8217; [UAE] control over the technology is important enough to sacrifice some operational to include lack of interoperability with allies or technological capabilities,&#8221; he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Email: <a href=\"mailto:amustafa@defensenews.com\">amustafa@defensenews.com<\/a><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At this year&#8217;s International Defence Exhibition, United Arab Emirates-based defense companies received the lion&#8217;s share of the contract awards announced by the country&#8217;s armed 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