The Strategist

UAE concludes defense deals worth $ 1.35 billion

02/18/2019 - 14:26

The United Arab Emirates announced defense deals with local and international companies worth about $ 1.35 billion on the opening day of the IDEX defense exhibition in Abu Dhabi, according to CNBC.

Toumi Fethi
Toumi Fethi
Of the 33 deals announced on Sunday, 18 were made with local firms, 15 - with foreign companies, which accounted for just under $ 1.1 billion, an IDEX spokesman said during a press conference.

The US companies accounted for transactions worth about $ 490 million. The agreements with Raytheon, Lockheed Martin and Hesco will provide UAE with missiles, new radar systems and protective shelters for the military, respectively.

In addition, significant deals were made with the French company Thales, the Australian EOS Defense and the German Rheinmetall Electronics.

Meanwhile, defense spending in the Middle East is growing rapidly.

According to the IHS Jane report published on Friday, arms spending in the Gulf countries increased from $ 82.3 billion in 2013 to $ 103 billion in 2019. In 2023, according to IHS, expenditures will reach $ 110.8 billion.

Although the fall in oil prices from 2014 to 2016 led to the fact that many procurement projects were postponed, "defense was generally protected from the worst cost cuts due to regional security problems, and budgets are now rising again," Charles Forrester the senior analyst at IHS Jane wrote in the report.

According to the analytical company, the Middle East is ahead of other regions in the import of weapons. It accounts for almost 20% of the global defense market. At the same time, the share of American companies accounts for 50% of exports entering this region.