The new policy of Tawazun Economic Program aims to support in the economic diversification in the UAE. The Program was designed to promote long-term partnerships to support and develop defense and security industries in UAE as well as create new opportunities in various strategic sectors. The Program aims to provide high economic value and achieve social and strategic benefits by encouraging capacity development, and supporting R&D capabilities. The Program also seeks to encourage SMEs to actively engage in the UAE economy; provide sustainable investments on the medium and long term; and create knowledge-based jobs for Emirati citizens.
In addition, Tawazun Economic Council launched the Defense and Security Development Fund with a capital of AED 2.5 billion (approximately $680 million) in order to encourage the private sector to invest in the fields of defense and security, contributing to the development of national and technological industries, including SMEs. The fund aims to build a diversified and sustainable national economy, in line with the economic and strategic objectives of the UAE. The Fund also aims to enhance the development of advanced technology, innovation, and industrial capabilities – benefitting the defense and security sector, as well as civilian sectors.
Tawazun’s participation in the exhibition involved several signings and collaborative agreements that will contribute to supporting investments of local companies, focusing on modern technologies and innovative solutions that meet the UAE’s strategic needs. Tawazun’s participation fortifies its key role in reaffirming Abu Dhabi's position as a leading hub for defense and security in the region, and developing various types and levels of strategic technologies.
During IDEX 2019, His Excellency Tareq Abdul Raheem Al Hosani, Chief Executive Officer of Tawazun Economic Council, reaffirmed that the Tawazun chalet at the exhibition attracted a wide presence and participation of dignitaries and decision-makers. Al Hosani further stressed Tawazun’s success in signing several agreements that would advance their efforts aimed at contributing to the achievement of UAE’s strategic objectives in terms of economic diversification, boosting the economy, and elevating national capabilities.
Al Hosani added: “Our participation in IDEX this year involved several successes that reinforce the Tawazun’s commitment to support UAE’s strategic vision. We announced the launch of the Defense and Security Development Fund as well as the new Tawazun Economic Program aimed at enhancing the nation’s economic capability of attracting foreign direct investments and elevating the economy. This effort will in turn accelerate development and create an environment that is conducive for keeping pace with the rapid changes in light of the Fourth Industrial Revolution.”
During IDEX 2019, Tawazun Economic Council signed several agreements to empower local projects and small and medium-sized enterprises. The Defense and Security Development invested into Al Marakeb, a company specialized in developing and updating systems of unmanned surface boats, in return for 30%. The Fund also invested AED 460 million (equivalent to EUR 110 million) in the Russian Automotive brand “Aurus”, which specializes in luxurious and armored vehicles. The investment for 36% share capital will be directed towards the development of the company’s manufacturing facilities and capabilities. The Fund also signed an agreement with Halcon Systems LLC, a company owned by the Abu Dhabi-based Yas Holding Group and specializing in the production of smart missile guidance system. The total funding will reach AED 193 and will be used for setting up production lines and further expanding Halcon’s existing capabilities to cater for local and international market demands.
The Fund, in collaboration with Sandooq Al Watan and Advanced PyroTechnics (APT) launched a specific contest in the field of research and development. The contest aims to encourage innovation in the UAE and upsurge the intellectual property rights. Value of the prize money is up to AED 5 million. Similarly, the Fund launched a new program supporting small and medium-sized local private enterprises in the defense and security industries with an investment of AED 200 million aimed at empowering and developing such ventures to ensure their contribution to the economic development in the UAE. The program was a result of a collaboration with “Tawazun Industrial Park”.
Commenting on the success of IDEX for the Defense and Security Development Fund, Abdulla Naser Al Jaabari, Chief officer and Head of Defense and Security Development Fund said that the Council established the Fund in order to encourage the private sector to invest in the fields of defense and security, and contribute to the development of national and technological industries, including SMEs – in the aim of building a diversified and sustainable national economy.
Al Jaabari reaffirmed that The Defense and Security Fund will play a vital role in supporting the private sector to meet the strategic needs of the state – through bringing forward innovative solutions to meet the current and future challenges for the development of the defense and security sector. Al Jaabari further stressed that the establishment of the Fund is part of the integrated development strategy of the UAE, and aims to enable income sources; enhance self-reliance; and encourage creativity and innovation.
Tawazun Economic Program signed an agreement with Thales Group and another with Atlas Elektroniks to build an underwater training centre in Abu Dhabi. The center will feature state-of-the-art technologies and will provide professional training on anti-submarine counter attack, and the operation and management of naval minesweepers, in addition to increasing efficiency of the staff supervising operation of marine radar detectors that use ultrasound for detecting underwater objects.
Under the Program’s umbrella, an agreement was signed with Atlas Telecom to launch a centre for maintenance of endoscopes and thermal cameras used in land and sea military activity. The centre will be the first of its kind in the Middle East and North Africa region, and will meet the strategic needs of the UAE, and requires time and financial commitment, as maintenance of endoscopes and thermal cameras require regular preservation every 6 to 8 months.
The Program successfully succeeded in attracting two new giants to the defense and security industry in the UAE. Tawazun’s announcement of the two separate agreements signed with Saab and Thales support the establishment of their individual wholly owned subsidiaries in the UAE. These agreements aim to develop advanced technologies in the local market and create job opportunities for Emirati citizens. The two companies will accelerate the development of state-of-the-art technologies in the local market; create jobs for Emiratis in the technical sector; as well as contribute to the development of scientific research through their partnerships with various educational institutions across the country.
Tawazun Economic Program has also announced a partnership with French-based consulting firm Eurotradia International (Eurotradia). The agreement signed aims to create an aircraft instruments workshop to serve Asia and the GCC. The workshop will provide a wide-range of capabilities including the repair of vital equipment such as pivot-static instruments, navigation instruments, engine instruments and electrical devices.
Matar Al Romaithi, Chief Economic Development Officer at Tawazun Economic Council stressed the importance of the new policy of Tawazun in supporting the UAE’s sustainable development efforts, building on the several investment options provided by the Program to attract foreign direct investments to elevate national capabilities ensuring sustainability of the course of development. He pointed out the Program’s success in signing several agreements during IDEX 2019 would stimulate the growth of defense and security industries and create new opportunities in specific strategic sectors in UAE, in line with the Accelerators Program and Abu Dhabi Economic Vision 2030.
Al Romaithi added, “The new policy of Tawazun Economic Program is aimed at supporting UAE’s development and economic diversification, opening the door to more sustainable investments in the short and long term, which drives the tangible value of the UAE’s community. We are pleased with the high visibility achieved by the new policy of the Program. We look forward to witnessing the invaluable and positive impact on the national economy, and its creation of a conducive environment that stimulates the defense and security sector and achieves the UAE’s social and economic goals.”
About Tawazun Economic Council
Tawazun Economic Council (Tawazun) is a key enabler of the UAE Defence and Security industry, with a focus on economic development. Founded in 1992, to date Tawazun has enabled the creation of more than 90 companies and investment vehicles within eleven sectors.
Tawazun contributes to the development of a sustainable Defence and Security industry by driving economic value, technology & innovation, ecosystem growth, and capabilities development. Tawazun works with industry players through its two main drivers, Tawazun Economic Program and the Defense and Security Development Fund. Additionally, Tawazun seeks to create job opportunities for Emirati citizens and to develop human potential.
© Press Release 2019