“We owe the gratitude to the founding father of the U.A.E., the late Sheikh Zayed bin Sultan Al Nahyan, for his unwavering efforts to create this federation, unify our Armed Forces and equip them with state-of-the-art technology and training.”– His Highness General Sheikh Mohammed bin Zayed Al Nahyan, on the 35th Anniversary of the Unification of the U.A.E. Armed Forces
Facing growing tensions in the Middle East North Africa (MENA) region, strengthening and equipping its defense and security forces with the newest technology and training remains a fundamental element of the United Arab Emirates’ (U.A.E.) national policy agenda. A country that has made national defense and security a top priority since its founding nearly forty years ago, the U.A.E. boasts some of the most modern weapons systems available on the market, purchased from strategic allies around the globe. In line with its economic development and national security strategies, the U.A.E. is currently seeking to purchase numerous modern warfare and security programs and technologies from the U.S. and other Western allies.
Moreover, the U.A.E.’s Ministry of the Interior, one of the first federal institutions established following the country’s founding on December 2, 1971, has worked continuously to modernize its police force to optimize capabilities and provide the highest levels of safety and security for U.A.E. nationals and expatriates living in the country. The U.A.E.’s Police forces look to the U.S. and other allies to provide equipment and technology to further enhance their operational capabilities and keep the peace domestically.
Since the unification of the U.A.E. Armed Forces on May 5, 1976 under the leadership of His Highness Sheikh Zayed bin Sultan Al Nahyan, the late Founder and President of the U.A.E., the country’s military and national security standards and technology have grown alongside its international presence and influence as a key strategic ally against terrorism and conflict in the Gulf region and around the world.
Following September 11th, the U.A.E. became a leading U.S. counterterrorism partner, expertly contributing to the security and stability of the Gulf and playing a vital role in the global security infrastructure surrounding the global War on Terror.
In 2009, the U.A.E. was the largest foreign market for U.S. defense equipment, according to the U.S. Department of State. Purveyors of some of the world’s newest and best defense and aerospace technology, U.S. companies look to the U.A.E. as a premier customer of their equipment, technology, and training services. Meanwhile, the U.A.E. views many U.S. companies as key providers of defense and aerospace technology and vital commercial partners that align with their national and regional security interests. These trends continue through 2011 as the defense and security relationship between the two countries continues to deepen.
In October of 2010, the National Defense Industrial Association (NDIA) and the U.S.-U.A.E. Business Council led representatives from 50 U.S. defense Original Equipment Manufacturing companies (OEMs), Small and Medium Enterprises (SMEs), and defense contractors on the first-ever trade mission in the defense sector to the U.A.E. to gather more information about the new federal U.A.E. offsets policy, understand the country’s commercial defense needs, and to meet potential local partners on the ground. The delegation attended the 2010 Abu Dhabi International Offsets Conference (ADIOC) and met with key senior defense representatives from the U.A.E. public and private sector. The Business Council will continue to bring American defense companies to the U.A.E. in the coming years, working with key stakeholders from both countries in the defense sector to ensure optimal exposure and understanding is achieved to facilitate future collaboration and commerce, and, to that end, is leading a delegation comprised of U.S. SMEs in September 2011.
The following report aims to provide an overview of the institutional environment in the U.A.E. defense sector; review current U.S.-U.A.E. commercial defense partnerships; offer information about key U.A.E. defense companies and agencies; and highlight opportunities for increased investment and partnership between U.S. and U.A.E. companies.
U.S.-U.A.E. Security Relations
“The U.A.E. is a leader in the Proliferation Security Initiative, which is the global effort to stop dangerous shipments from reaching dangerous destinations.”-The Honorable Ellen Tauscher, Under Secretary of State for Arms Control and Security
The United States and the U.A.E. enjoy a robust and growing security and defense relationship, partnering regularly on regional and global security efforts to preserve peace and stability. From the U.S. perspective, the safety and security of the U.A.E. plays an essential role in U.S. homeland security efforts.
Important elements of the U.S.-U.A.E. security relationship:
• The U.A.E. was the first country from the Middle East to provide support to the United Nations mission in Libya, sending six Mirage and six F-16 fighter jets to support efforts to enforce the U.N. Security Council-mandated No-Fly Zone
• The U.A.E. currently has combat and support troops on the ground in Afghanistan, supporting the ongoing U.S. and NATO mission
• The U.A.E. is a signatory and emerging leader in the Proliferation Security Initiative
• A formal Defense Cooperation Agreement between the countries has been in place since 1994
• The U.A.E. hosts more than 2,000 U.S. military personnel and Jebel Ali Port in Dubai is home to the largest American naval port-of-call outside of the U.S.
• The U.A.E. Armed Forces support the logistics and operations of the U.S. Air Force at Al Dhafra Air Base in Abu Dhabi and the U.S. Navy at Jebel Ali
Important elements of the U.S.-U.A.E. Counterterrorism partnership:
• The U.A.E. was the first Middle Eastern country to join the U.S. Container Security Initiative, allowing U.S. customs officers to inspect U.S.-bound cargo at U.A.E. ports
• The U.S. and the U.A.E. have established joint task forces to combat money laundering, terrorist financing, and nuclear proliferation
• The U.S. and the U.A.E. enjoy significant intelligence cooperation between the armed forces and intelligence agencies of both countries
The Defense & Security Government Agencies
The U.A.E.’s federal defense and security agencies—the Ministry of Defense, the U.A.E. Armed Forces General Headquarters (GHQ), the Special Operations Command, and the Ministry of the Interior–are headquartered in Abu Dhabi. The U.A.E. established the Critical National Infrastructure Authority (CNIA) in 2007 to protect the country’s national infrastructure and to promote economic stability within the emirates. In 1992, the U.A.E. created the Offset Program Bureau (OPB) to regulate the commercial defense and security sector and promote economic diversification and commercial partnerships with key foreign companies. In addition to the federal protection services provided by the Ministry of the Interior, each emirate maintains its own police force.
U.A.E. Armed Forces
The U.A.E’s Armed Forces, comprised of the Air Force and Air Defense, the Navy, and the Land Forces, work closely with the U.S. military and the militaries of other allies to maintain the highest global standards of training and preparedness.
The leadership and senior officials of the U.A.E.’s Armed Forces are mostly U.A.E. nationals. However, lower-level troops mostly hail from surrounding Arab nations and Pakistan. The U.A.E. is working to reduce the number of foreign nationals in its ranks, in accordance with the national Emiratisation initiative.
Key Figures in the U.A.E.’s Defense Leadership:
His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the U.A.E., Ruler of Abu Dhabi, Supreme Commander of the U.A.E. Armed Forces
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the U.A.E., Ruler of Dubai, and the U.A.E. Minister of Defense
His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the U.A.E. Armed Forces
His Highness Sheikh Hazza bin Zayed Al Nahyan, U.A.E. National Security Advisor and Vice Chairman of the Abu Dhabi Executive Council
Lieutenant General Hamad Mohammed Thani Al Rumaithi, Chief of Staff of the U.A.E. Armed Forces
His Excellency Major General Essa Saif Mohammed Al Mazrouei, Deputy Chief of Staff of the U.A.E. Armed Forces and Director of Military Intelligence
Major General Staff Pilot Mohammed bin Suwaidan Saeed Al Qamzi, Commander of the U.A.E. Air Force and Air Defense
Staff Brigadier Ibrahim Salem Al Baloushi, Commander of the U.A.E Naval Forces
U.A.E. Presidential Guard
Senior Leadership:
Major General Michael Hindmarsh, Commander
Background Information
Recently established, the Presidential Guard is expected by the country’s leadership to be the premier fighting unit in the U.A.E. Armed Forces. In accordance with this mandate, the Presidential Guard is currently training with various U.S. military personnel in an effort to build their knowledge of military training best practices. In fact, His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the U.A.E. Armed Forces, specifically asked for U.S. Marine guidance in developing a warrior ethos for this elite unit of U.A.E. Soldiers.
The U.A.E. Special Operations Command (SOC), a unit of the Presidential Guard, is a small but effective force focused on the counter-terrorism mission within the U.A.E. The SOC is well-financed, trained, and equipped and currently has soldiers deployed in Afghanistan, the only Arab personnel undertaking full-scale operations in the country. The SOC is an elite unit of a few thousand troops, utilizing Black Hawk helicopters and Boeing Chinook transport helicopters to carry out their missions.
U.A.E. Ministry of the Interior
Senior Leadership:
His Highness Lieutenant General Sheikh Saif bin Zayed Al Nahyan, Minister of the Interior (January, 11, 2004-present)
Lieutenant General Saif Abdulla Al Shafer, Undersecretary of the Ministry of Interior (December 29, 2004-present)
General Nasser Salem Al Khreibani Al Neimi, Secretary-General of the Ministry of Interior
Background Information
The U.A.E. Ministry of the Interior was established shortly after the unification of the U.A.E. to protect and unify the nation’s security and police infrastructure. In the past four decades, the Ministry has developed the country’s internal security operations and benefitted from the guidance, commercial partnership and support of strategic allies around the world, including the U.S. In addition to its national security and peace-keeping operations, the ministry is home to numerous agencies that protect the rights and lives of U.A.E. citizens and residents.
Critical National Infrastructure Authority (CNIA)
Senior Leadership:
Staff Brigadier Pilot Faris Al Mazrouei, Chairman
Background Information
The Critical National Infrastructure Authority (CNIA) was established by His Highness Sheikh Khalifa bin Zayed Al Nahyan by presidential decree in 2007. The CNIA is the government authority responsible for the protection of the U.A.E.’s infrastructure from potential foreign threats, sabotage, and destruction. The CNIA protects the U.A.E.’s infrastructure in accordance with the U.A.E. Armed Forces and Federal government agencies and provides a safe environment for the development and prosperity of the country’s economy. Branded as the “Guardians of the Nation’s Prosperity,” the CNIA monitors the national infrastructure as well as the safety and security of the emirate of Abu Dhabi’s maritime environment. The CNIA protects land and maritime infrastructure of the U.A.E., including its ports, offshore and onshore petroleum facilities, and its national energy reserves.
Offset Program Bureau (OPB)
Senior Leadership:
His Highness General Sheikh Mohammed bin Zayed Al Nahyan, Chairman
His Excellency Saif Mohamed Al Hajeri, Chief Executive Officer
Matar Al Romaithi, Director General
Background Information
The Offset Program Bureau (OPB) was established in 1992 to oversee the national offset program in the U.A.E. It is mandated to set up joint ventures, as well as to invest in commercial, industrial, financial, and educational projects and to create investment funds in the U.A.E. and abroad. OPB works to bridge the gap between international contractors and the local private sector for the creation of commercially viable, profitable and sustainable joint ventures.
In June of 2010, OPB launched revised federal offset guidelines to support its plans for an industrial base that delivers sustainable economic and social development through industrial partnerships, capacity building, technology and knowledge transfer and creation of jobs for the U.A.E. citizens.
Contact Information
Website: www.offset.ae
Telephone: +971 2 6160000
Address: P.O. Box: 908, Abu Dhabi, U.A.E.
Top U.A.E. Defense Companies (alphabetical order)
For additional information on the companies listed here, please see the full directory at http://www.idp.ae/en/agreements/guide.pdf
Abu Dhabi Aircraft Technologies (ADAT)– (Mubadala & General Electric)
Abu Dhabi Aircraft Technologies (ADAT), a wholly-owned Mubadala affiliate company, is a technical and maintenance services provider to commercial and military aviation industries.
Under an agreement with GE, ADAT has become the world’s first Maintenance Repair and Overhaul (MRO) network provider for GEnx engines covering the Middle East and North Africa. ADAT is also a member of GE’s MRO network for on-wing support services.
GE and its affiliates have also granted ADAT licenses to service certain GE engines and are providing technical support and comprehensive training as part of the agreement.
Abu Dhabi Autonomous Systems Investments Co LLC (ADASI)
Abu Dhabi Autonomous Systems Investments (ADASI) is a manufacturer of unmanned, remotely controlled vehicles, used where human presence is dangerous or uneconomical.
The company is working closely with the U.A.E. Armed Forces, creating complex systems that integrate sensing, navigation, classification, and mission planning capabilities, and is in discussions with international firms concerning future joint ventures and launching products on the international market.
Abu Dhabi Ship Building
Abu Dhabi Ship Building (ADSB) was established in accordance with the vision of H.H. Sheikh Mohammed Bin Zayed to have a world-class facility in Abu Dhabi to support the U.A.E. Navy. ADSB specializes in the construction, repair and refit of naval, military and commercial vessels. The company boasts an impressive portfolio of build and refit projects that are collectively worth at least AED 3 billion.
Advanced Integrated Systems (AIS)
Advanced Integrated Systems, the fastest-growing homeland security company in the world, is the first company to provide fully-integrated turnkey solutions for internal national security on a nationwide scale. Built on a foundation of years of in-house research and development, combined from mergers and acquisitions of security technology companies, the company has won contracts to secure some of the most important energy production facilities, transportation hubs, borders and urban centers around the globe.
Advanced Military Maintenance Repair and Overhaul Centre (AMMROC)- (Mubadala, Sikorsky Aircraft, & Lockheed Martin)
The Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) aims to become a center of excellence for military MRO by providing a broad range of aviation capabilities from first line, second line and depot level MRO services to meet the growing demands of the U.A.E. Armed Forces and regional military forces.
Burkan Munitions Systems
Burkan Munitions Systems LLC is the first ammunition factory in the U.A.E. The company serves the needs of the Armed Forces in the U.A.E and the region and offers ammunitions refurbishment, R&D, and training services, providing job opportunities for U.A.E. nationals in fields requiring advanced expertise, including R&D, investment, and technology.
Caracal
Caracal holds the distinction of being the first national arms manufacturer in the U.A.E. In 2006, Caracal International LLC was incorporated and registered as a company in Abu Dhabi. With that, the foundation of a highly advanced pistol manufacturing industry was established for the first time in the GCC. Caracal was officially launched in February 2007 at the prestigious IDEX 2007 in Abu Dhabi.
Emirates Advanced Investments (EAI)
Emirates Advanced Investments (EAI) is a business development and investment company based in Abu Dhabi. EAI explores and develops new investments in the local economy.
Global Aerospace Logistics, (GAL)
GAL is a limited liability company registered in Abu Dhabi in July 2007 with two partners, the controlling partner being EAI. GAL was founded with the objective of establishing a flagship company focusing on critical U.A.E. defense programs. GAL is a major service provider to the U.A.E. Air Force & Air Defense and Air Traffic Control.
GA Land Systems
GA Land Systems provides professional engineering & technical services, including the supply of mission critical armored vehicle systems, upgrades of existing combat vehicles & obsolescent sub-systems, maintenance & repair, sale of spare parts & accessories, supply chain management, integrated logistic support, training, testing & evaluation.
International Golden Group (IGG)
The International Golden Group is at the forefront of defense hardware supply in the U.A.E. and the Gulf Region. IGG serves establishments and entities of the highest order such as the U.A.E. Armed Forces, the Ministry of the Interior, and the Critical National Infrastructure Authority.
Mubadala Aerospace– (Mubadala & General Electric)
Mubadala Aerospace’s integrated approach to the aerospace sector encompasses comprehensive manufacturing through to Maintenance Repair Overhaul (MRO) services.
Mubadala GE Capital PJSC, a US$ 8 billion commercial finance joint venture, will capitalize on investment opportunities through GE Capital’s existing global origination infrastructure.
NIMR Automotive is a vehicle manufacturer based in Abu Dhabi, providing a portfolio of products for clients including international armed forces and internal security organizations. The firm develops and produces customizable, interoperable platforms, offering transport solutions for a wide range of combat and non-combat scenarios.
STRATA
STRATA is a composite aerostructures manufacturing facility, wholly-owned by Mubadala, which has formed partnerships with a number of leading aerospace companies to establish manufacturing programs at a new plant in Al Ain. Initial contracts, worth more than AED 4.8 billion (US$ 1.3 billion) have been signed with partners.
Tawazun
Tawazun Holding is a strategic investment firm focused on the long-term development of Abu Dhabi’s industrial manufacturing and technology capabilities and knowledge-transfer with a specific focus on the defense sector.
Tawazun Advance Defense Systems (TADS)
Tawazun Advanced Defense Systems (TADS) is a new company formed to develop and manufacture long-range sniper rifles for the international defense market. As a new pioneer in cutting-edge sniper rifle technology, TADS is in a position to further advance the research and development capabilities of Tawazun’s portfolio companies.
Tawazun Precision Industries
Tawazun Precision Industries is a fully-owned subsidiary of Tawazun, with a wide range of capabilities that are geared to serve all facets of industrial needs for Tawazun emerging industries. TPI is a preferred supplier of machined components and metallic aerostructures for the aeronautics, oil and gas industries.
Investment and Partnership
The U.S. and the U.A.E. share a lucrative defense and military commercial relationship. Many U.S. OEMs have secured long-term deals with the U.A.E. Armed Forces and defense sector to provide military equipment and services. As evidenced by the breadth of deals made during the 2011 International Defense Exhibition & Conference (IDEX), the relationship continues to grow as OEMs set up joint ventures with local U.A.E. defense companies and as the U.S. Congress approves proposed foreign military sales (FMS) to the U.A.E. that are currently in the pipeline.
Current U.A.E. Military Equipment Programs with the U.S.
• Terminal High Altitude Area Defense Missile System (THAAD) (Lockheed Martin)
• Patriot PAC-3 (Raytheon and Lockheed Martin)
• HAWK Air Defense Missile System (Raytheon)
• AH-64 APACHE Helicopter Longbow (Boeing)
• U.A.E. Air Force Command and Control System (Northrop Grumman)
• C-130 Cargo Aircraft (Lockheed Martin)
• C-17 Aircraft (Boeing)
• F-16 E/F Advanced Fighter Aircraft (Lockheed Martin)
• Multiple weapon systems associated with F-16 E/F (Northrop Grumman, Raytheon)
• UH-60 Blackhawk Helicopters (Sikorsky Aircraft)
• High Mobility Artillery Rocket System (Lockheed Martin)
• Maverick air-to-surface missiles (Raytheon)
• Lockheed Martin & Global Aerospace Logistics provide Intelligence, Surveillance and Reconnaissance (ISR) Sensor Solutions to U.A.E. Armed Forces
• Mubadala & Northrop Grumman work together to provide the Emirate of Abu Dhabi with aerospace and aviation educational and training programs
Challenges & Opportunities
“The U.A.E. is an excellent destination in the Middle East to set up your operations due to its logistical infrastructure and central location in the region.” — National Defense Industrial Association (NDIA) press release
The biggest challenge that faces the commercial defense relationship between the U.S. and the U.A.E. remains the rigid regulatory framework in both countries. As U.S. and U.A.E. defense companies adjust to new U.A.E. federal offset guidelines, U.S. companies continue to undertake extensive lobbying efforts to encourage the U.S. Congress to approve deals with the U.A.E. and other strategic foreign allies. Additionally, calls for the U.S. Department of Defense to cut billions of dollars from its budget could have a direct affect on current and future military sales to the U.A.E.
The U.S. has many military installments currently in the pipeline for eventual sale to the U.A.E. Armed Forces. Most notably, the U.A.E. is pursuing Lockheed Martin’s Terminal High Altitude Area Defense missile system, known as THAAD. During the International Defense Exhibition & Conference (IDEX 2011) in February, news reports indicated that executives were close to signing a contract for the delivery of the THAAD system in the near-term, worth upwards of $7 Billion. Another significant deal signed during IDEX will make the U.A.E. the first foreign recipient of General Atomics’ Aeronautical Systems Predator drones.
The opportunities for future deals, joint ventures, technology transfer, and military collaboration between the U.S. and the U.A.E. will fuel the commercial partnership as the U.A.E. defense sector continues to grow and partnerships with U.S. companies continue to develop. The U.A.E. is regarded by the U.S. Administration as a key ally in the Gulf region and common foreign policy interests will provide the foundation for a mutually beneficial commercial defense relationship between the two countries in the future.
