Abu Dhabi
Deals worth Dh9.48 billion were signed on the first day of International Defence Exhibition and Conference (Idex) 2015, the organisers said on Monday.
The UAE army and a number of private companies signed deals to procure new equipment and upgrade their technology. Overall 18 deals were signed on various fronts including buying of new satellites, military vehicles, drone systems, ship building and technical support system.
A number of global companies are displaying their defence equipment in the five-day exhibition which opened on Sunday. Global giants like Raytheon, BAE systems, Boeing are few of the companies that are participating in the event.
Among the biggest deals signed on the first day was with Abu Dhabi-based Al Taif Technical services to procure vehicles for the UAE armed forces. The total value of the deal is Dh2.4 billion.
Abu Dhabi Ship Building won a Dh870 million deal for building two ships. The UAE armed forces signed a contract with the local firm UMEX for supplying drone systems in a contract valued at Dh490 million.
Major General Obaid Al Ketbi, chairman of the organising committee of the Idex said at a press conference that defence industry is growing in the UAE. “We strongly rely and work closely with our friends from all around the world. The defence industry is growing. Idex is giving a platform for local companies to be more professional in the field.”
Emirates Defence Industries Company recently announced the integration of a number of companies from Mubadala and Tawazun. There are also plans to start new projects this year in a joint cooperation with international firms.
When asked about whether falling oil prices has any impact on defence spending Al Ketbi said the UAE works with a clear strategy on defence. “Oil prices might have influenced all around the world but the UAE has its own vision on defence. I don’t think it will have a strong impact on the sector,” he said.
Oil prices have been plunging since last year creating an impact on the revenue of oil producing countries. Though the UAE is unlikely to be affected due to cash reserves, doubts were cast on whether spending on different sectors would continue.
Commenting on fighter jet deal with the UK-based BAE systems, Al Ketbi said talks are still going on. “The status is the same,” he said.
Meanwhile, the total value of deals in the 2013 edition of Idex stood at around Dh14.1 billion.
“The total figure would be clear on the final day of Idex for this year. The event attracted bigger attention from dignitaries from all over the world including heads of armies,” said the event’s organisers.
Paramount Group and Jordan’s state-owned defence company, the King Abdullah II Design and Development Bureau (Kaddb), signed a major contract on Monday for the production of the world’s most advanced armoured combat vehicles, the 6x6 Mbombe infantry combat vehicle, which is specifically designed to meet the demands of modern conflicts around the world.
Chief Executive Officer of King Abdullah II Design and Development Bureau, Major General Omar Al Kaldi said the production of Mbombe in Jordan signals an important milestone in the continuing growth of the defence industrial capability in the Middle East.
“The Mbombe is a world-class product that is optimally suited for the requirements of defence forces in the region. The Mbombe will become the platform for the future 6x6 requirements of the Jordanian Armed Forces,” Al Kaldi said.
The deal gathers significance as the country wages a battle against Daesh militants who unleashed a terror in the region by killing aid workers, journalists and a Jordanian pilot in recent times.
According to Paramount group, defence spending across the Mena region last year grew 12.1 per cent to $120.6 billion (Dh442.6 billion), making it the fastest-growing region in percentage terms in the world.
