‘Defence industry drives UAE innovation’
The UAE, the 14th largest military spender in the world in 2016, has a comparative advantage to create a local defence industry as it seeks to meet its security needs, diversify its economy, boost employment and enhance its knowledge base, experts said yesterday.
The country is developing a domestic defence industry to help lower its military expenditure, which reached US$22.8 billion last year, or 5.7 per cent of GDP, according to the Stockholm International Peace Research Institute.
There needs to be some level of independence when it comes to the security forces’ defence needs, said Fahad Al Yafei, chief programs officer at Tawazun Economi Council, the Abu Dhabi body spearheading the development of the emirate’s defence industry.
“And again it is a well known fact that the defence industry is a catalyst for innovation,” Mr Al Yafei said at a conference in Abu Dhabi.
The country’s comparative advantage includes its respect for intellectual property and security, said David Des Roches, senior military fellow at the National Defence University.
John Harris, chief executive of Raytheon International, said the company is keen to expand its partnership with the UAE.
“Our intention is to create capacity that not only can support a programme but can also be part of the global supply chain,” Mr Harris said.
But challenges linger for the development of the industry, including US restrictions on transfer of technology.
“It is always hard to re-export American technology,” said Mr Des Roches. “An objective observer would conclude the United States leases weapons. It does not sell them because they have so many conditions.”