A new generation of home-grown defence-related companies are well-funded and tasked with assisting Abu Dhabi to realise its 2030 plan.
A new generation of home-grown defence-related companies are well-funded and tasked with assisting Abu Dhabi to realise its 2030 plan.

Defence industry on the march



Ali al Dhaheri could not have known he was trailblazing an indigenous defence industry for the UAE when he set up Adcom Systems in the late 1980s. The company, now with a turnover in the hundreds of millions of dollars, produces advanced aeronautical products such as jet-powered, remote-controlled unmanned aircraft, called drones, used as targets by trainee air force personnel. "Over time we ? evolved from being hobbyists to professionals," says Mr al Dhaheri. "We found that we had a mind to develop things by ourselves." Adcom has produced thousands of target drones for about 12 customer nations. It is also focusing on more advanced drones, called unmanned aerial vehicles, which includes a partnership with a Malaysian company, Composite Technology Research Malaysia.

As well as aircraft superstructure, Adcom produces sensitive navigational technology such as the drones flight control units - which take 500,000 positional readings per second - at its workshops in Musaffah, he says. The company plans to increase the size of the workshops by 4,600 square metres. Adcom may have been one of the first but there are now a number of companies that have found ways to cater for the UAE's huge defence requirements - it is the world's fourth-largest arms importer - as well as other Gulf nations.

Among the original entrants into the UAE market were trading businesses such as International Golden Group (IGG) and Vallo, which represent and market foreign defence companies and their products, and companies such as Bin Jabr Group, which has assembled mini-submarines and armoured vehicles for the UAE military. These companies were started by big personalities who were well connected with the military, says Riad Kahwaji, the chief executive of the Institute for Near East Military Analysis in Dubai. "They figured out an easier way to meet the exact needs of the military than western countries," he says. "They knew the culture and interaction here."

IGG has acted as a local agent for foreign defence companies such as Thales of France and General Dynamics of the US since 2002. When the company announced its partnership with South Africa's Denel in 2006, it made a point of stating it had "demonstrated its ability to bring business to Denel" in the UAE, officials at the time said. In February last year it signed a three-year, Dh67 million (US$18.2m) deal with the Abu Dhabi Government's Critical National Infrastructure Authority to construct water security barrier systems produced by Wave Dispersion Technologies, based in the US.

Vallo, formerly Hydra Trading, also has partnerships with foreign companies to help them enter the Middle East marketplace. It represents the Czech vehicle maker Tatra and Russ Technology, which produces the BMP armoured personnel carrier, in the region. Vallo sees huge potential in selling Tatra's military vehicles to the UAE and Saudi armed forces and plans to build a 40,000 sq metre assembly plant in Musaffah, says Mohammed Zahran, the manager for Vallo.

"I think Vallo is going to be the talk of the town, we have really grown so fast," he says, adding it has beefed up its management team with eight retired officers from the UAE Armed Forces. Bin Jabr Group began as an agent for companies such as Thales and Sagem supplying communications equipment to the military. In the late 1990s it began developing its own products, such as special forces submarines and armoured vehicles for the UAE, and also does brisk business manufacturing military uniforms for many of the UAE's estimated 50,000 servicemen.

Its NIMR high-mobility tactical vehicles were custom-tailored for the desert environment, says Yousef al Sheybah, a retired UAE staff colonel and the general manager of marketing and development, defence and security at the Bin Jabr Group. According to the Army Guide website, Bin Jabr Group signed a deal with the UAE to provide 500 of its NIMR vehicles in 2005 in a contract valued at $41m. The vehicles are manufactured in Jordan, while the gearbox and engines are purchased from other companies. There are plans to develop local manufacturing of the NIMR in Abu Dhabi.

Mr al Sheybah says the NIMR programme has huge export potential. The UAE forces are happy with the submersibles it manufactured at its facilities in Musaffah, he adds. "[The submarines] are very advanced for certain operations and depths - they can do depths of 50m." These original companies are now having to contend with a changing order, however, as Abu Dhabi master-plans a home-grown defence industry.

A new generation of defence-related companies are rising up that are well-funded, state-supported and tasked with helping the emirate to realise its 2030 plan by creating highly skilled jobs and a knowledge-based economy. Tawazun, an Abu Dhabi Government-backed holding company, has created a gun manufacturer, Caracal, which has contracts in the UAE and other Middle Eastern countries. It is targeting an output of 40,000 handguns this year, officials have said. Another Tawazun company, Al Burkan, produces munitions, while its Abu Dhabi Autonomous Systems Investments is expected to introduce unmanned aerial, land and marine systems in the coming years.

In addition, state-supported maintenance companies have been established such as Al Taif Technical Services, a unit of Mubadala Development, a strategic investment company owned by the Abu Dhabi Government. Al Taif has a 20-year contract to service the army's fleet of tanks and heavy utility lorries, worth more than Dh1 billion. One of the largest recent entrants to the UAE defence market is Emirates Advanced Investments (EAI), which was established in 2006 and is jointly developing laser-guided rockets with one of the world's largest defence companies, the US-based Raytheon.

The partnership is just one of several EAI has cultivated including those with the European company EADS for command and control systems, and Thales to provide in-service support for armed forces' communications systems. But new competition does not worry Mr al Sheybah, who says his company has gained enough experience to be competitive in cost and quality in everything it manufactures. "We compete with companies that have been in the marketplace for years and are more experienced than Bin Jabr but we are at the same level of quality and are often cheaper," he says.

All of the local defence companies can be sustainable as long as they continue to invest in new products, Mr Kahwaji says. "If they invest well and smartly in research and development and continue to make tailor-made products and maintain close partnerships to the local militaries, they will be sure to get contracts." @Email:igale@thenational.ae

COMPANY PROFILE

Name: Grubtech

Founders: Mohamed Al Fayed and Mohammed Hammedi

Launched: October 2019

Employees: 50

Financing stage: Seed round (raised $2 million)

 

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MATCH INFO

Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)

Arsenal win 5-4 on penalties

Man of the Match: Ainsley Maitland-Niles (Arsenal)

How being social media savvy can improve your well being

Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.

As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.

Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.

Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.

Torrena said that “most people believe that dieting and keeping fit is boring”.

However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.

“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.

People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

Result

UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

Starring: Jamie Foxx, Angela Bassett, Tina Fey

Directed by: Pete Doctor

Rating: 4 stars

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

More from Armen Sarkissian

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

Haemoglobin disorders explained

Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.

Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.

The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.

The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.

A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4-litre%20flat-six%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E525hp%20(GT3)%2C%20500hp%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E465Nm%20(GT3)%2C%20450Nm%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh944%2C000%20(GT3)%2C%20Dh581%2C700%20(GT4)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
Most F1 world titles

7 — Michael Schumacher (1994, ’95, 2000, ’01 ’02, ’03, ’04)

7 — Lewis Hamilton (2008, ’14,’15, ’17, ’18, ’19, ’20)

5 — Juan Manuel Fangio (1951, ’54, ’55, ’56, ’57)

4 — Alain Prost (1985, ’86, ’89, ’93)

4 — Sebastian Vettel (2010, ’11, ’12, ’13)

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Abu Dhabi Desert Challenge – Rally schedule:

Saturday: Super Special Spectator Stage – Yas Marina Circuit – start 3.30pm.
Sunday: Yas Marina Circuit Stage 1 (276.01km)
Monday: Nissan Stage 2 (287.92km)
Tuesday: Al Ain Water Stage 3 (281.38km)
Wednesday: ADNOC Stage 4 (244.49km)
Thursday: Abu Dhabi Aviation Stage 5 (218.57km) Finish: Yas Marina Circuit – 4.30pm.

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

The finalists

Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho

Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson

Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)

Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)

Club of the Year: Bayern Munich, Liverpool, Real Madrid

Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)

Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola

Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres  

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor 

ANALYSTS’ TOP PICKS OF SAUDI BANKS IN 2019

Analyst: Aqib Mehboob of Saudi Fransi Capital

Top pick: National Commercial Bank

Reason: It will be at the forefront of project financing for government-led projects

 

Analyst: Shabbir Malik of EFG-Hermes

Top pick: Al Rajhi Bank

Reason: Defensive balance sheet, well positioned in retail segment and positively geared for rising rates

 

Analyst: Chiradeep Ghosh of Sico Bank

Top pick: Arab National Bank

Reason: Attractive valuation and good growth potential in terms of both balance sheet and dividends

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Major honours

ARSENAL

  • FA Cup - 2005

BARCELONA

  • La Liga - 2013
  • Copa del Rey - 2012
  • Fifa Club World Cup - 2011

CHELSEA

  • Premier League - 2015, 2017
  • FA Cup - 2018
  • League Cup - 2015

SPAIN

  • World Cup - 2010
  • European Championship - 2008, 2012
The years Ramadan fell in May

1987

1954

1921

1888

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills