The UAE Offset group said yesterday it had signed an agreement with arms producer Denel to attract capital from the South African company into the country's economy under weapons offset transactions.
The Offset Programme Bureau (OPB) said it inked the deal after its "successful" participation in Eurosatory 2010, the world's largest gathering of land and air defences, which was held in Paris during June 14-18.
Matar Ali Al Romaithi, Director of the Offset Unit at the OPB, and Talib Sadik, the Group Chief Executive Officer of Denel, signed the agreement, the first of its kind between the UAE's Offset group and a major South African arms maker.
Al Romaithi said the agreement with Denel would provide for smooth and mutually beneficial fulfilment of the company's offset obligations arising from current and future procurement contracts with the UAE Armed Forces.
"Under the new offset guidelines, both sides are expected to gain benefits. The agreement is a testimony to the resounding success of the new guidelines in bringing about flexibility and ease of fulfillment for the defence contractors, while contributing to building a strong industrial base in the UAE, as well as to economic growth, diversification and comprehensive development," he said.
Sadik said Denel would work on creating meaningful partnerships with the UAE defence industry.
"We have given our commitment to the process in the past and will continue to do so by playing a meaningful role in assisting the UAE Government to achieve its stated objectives for its defence industry as well as the broader aspiration of developing its knowledge economy," he said.
The Offset Programme Bureau was established in 1992 to oversee the offset programme in the UAE.
It is mandated to set up joint ventures, as well as to invest in commercial, industrial, financial, and educational projects.
Its main objective is to add value to the country's economy by ensuring that all projects being developed under the UAE offsets programme are in line with the country's overall strategic master plan and are consistent with national economic imperatives.
Since its creation, the Offset Programme Bureau has helped set up more than 40 successful joint ventures, attracting foreign investment in excess of Dh8 billion, including four initial public offerings in the UAE in which more than 300,000 UAE nationals are shareholders.
By Staff Writer
© Emirates Business 24/7 2010
