{"id":40052,"date":"2019-11-11T22:09:14","date_gmt":"2019-11-11T22:09:14","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2019\/11\/11\/a-new-future-in-global-arms-sales\/"},"modified":"2026-08-07T23:18:18","modified_gmt":"2026-08-07T23:18:18","slug":"a-new-future-in-global-arms-sales","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/mideast-africa\/2019\/11\/11\/a-new-future-in-global-arms-sales\/","title":{"rendered":"A new future in global arms sales?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The last few years have seen a subtle transition in how the U.S., as the world\u2019s dominant arms exporter, markets to the world.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider what we already know.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In Europe, there\u2019s an expectation to filter more to local firms, whether through co-development or direct buys. There\u2019s also demand for greater access into U.S. programs, and for that access to be on a level playing field.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And then there\u2019s South Korea, now calling for foreign contractors to engage with domestic small and medium-sized enterprises. Financial support for its companies is important, according to the Defense Acquisition Program Administration, but so is guidance that helps identify technologies that will make those domestic companies more marketable. Call it a mentorship of sorts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Look to Middle Eastern countries and we\u2019ve historically seen more financial offsets: expectations to create jobs at home to improve the economy, grow skilled labor and expand infrastructure. That\u2019s the same in northern Africa. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But with oil no longer a reliable source of revenue for the region, the expectations are shifting. The Middle East wants to build a new industry, and with billions of dollars in arms sales at stake for the U.S. and Western allies, the region also knows full well that it holds some powerful cards to play. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s that question that drove the shift in Europe: \u201cWe\u2019re buying from you, so why can\u2019t you buy more from us? And by the way, politically speaking, we\u2019re pretty important.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All this to say that the emerging visions in the United Arab Emirates and Saudi Arabia have some teeth. And it can, therefore, shape how the Pentagon, American defense giants and global allies for that matter handle arms sales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider a couple of the more recent developments.<a href=\"https:\/\/www.defensenews.com\/digital-show-dailies\/dubai-air-show\/2019\/11\/06\/uae-launches-edge-conglomerate-to-address-its-antiquated-military-industry\/\" target=_blank> The UAE launched a government-owned company <\/a>with a combined annual revenue of $5 billion known as Edge, established with a core mandate \u201cto disrupt an antiquated military industry generally stifled by red tape,\u201d according to its CEO. Falling under Edge are now 25 companies that before were quite small in revenue and global market share, but together hold significant buying power: NIMR, AMMROC and Abu Dhabi Ship Building to name a few.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not only do these companies become more formidable players on the global stage, but Edge suddenly carries with it significant negotiation power. Sales to the UAE could bring newfound expectations for partnerships, for stakes in programs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then consider Saudi Arabia, <a href=\"https:\/\/www.defensenews.com\/interviews\/2018\/08\/27\/head-of-saudi-arabias-defense-industry-umbrella-org-talks-vision-2030\/\" target=_blank>which established the Saudi Arabian Military Industries,<\/a> or SAMI, for essentially the same reason. It also modeled the structure off of other countries with established defense industries \u2014 Turkey, South Korea, South Africa and some Western countries, among others. SAMI\u2019s stated goal is to become one of the largest 25 defense companies in the world by 2030 and to have export account for 30 percent of its business. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So what might this mean for how the U.S. works with the Middle East? Major primes have cheered the formation of these holding companies. But make no mistake: Those primes recognize that the holding companies also pose a threat to the status quo. A simple model of just selling systems into the region likely won\u2019t fly, nor will teaming on a particular competition necessarily be enough. Boeing formed a joint venture with SAMI, for example, recognizing the need to commit long term. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also consider what SAMI CEO Andreas Schwer stated to be his asks of the U.S. and allies when I interviewed him last year: \u201cIf there was a wish, we would love to get more access to top-class technologies from all the U.S. partners. There are obviously limitations, which we are suffering from. That\u2019s the one element. So be a little bit more open. And second, export in arms and weapons was driven by FMS [Foreign Military Sales] programs. In our new setup in Saudi Arabia, we will do more and more in direct commercial sales.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s be realistic \u2014 that could change things.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The last few years have seen a subtle transition in how the U.S., as the world\u2019s dominant arms exporter, markets to the world.<\/p>\n","protected":false},"author":7,"featured_media":82688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":47,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,67,11,47,36,17],"tags":[],"coauthors":[2572],"class_list":["post-40052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-editorial","category-global","category-mideast-africa","category-newsletters","category-opinion"],"acf":{"subheadline":"","legacy_arc_id":"J5WR3C6HBNGXHHYVUCSPG2IYQE","arc_canonical_url":"\/global\/mideast-africa\/2019\/11\/11\/a-new-future-in-global-arms-sales\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A new future in global arms sales? - Defense News<\/title>\n<meta name=\"description\" content=\"The last few years have seen a subtle transition in how the U.S., as the world\u2019s dominant arms exporter, markets to the world.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A new future in global arms sales?\" \/>\n<meta property=\"og:description\" content=\"The last few years have seen a subtle transition in how the U.S., as the world\u2019s dominant arms exporter, markets to the world.\" \/>\n<meta property=\"og:url\" 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