The UAE is trying to curb its dependence on military imports by building its first warship with technology transfer from the West, defence industry experts said, according to a Reuters report.
The Abu Dhabi Ship Building Company (ADSB) is also offering for export its Baynunah warship, a Corvette-class frigate that will be the first warship made in the Gulf Arab region.
The company has already signed a $500 million deal to sell its first four vessels to the UAE Navy, and has received orders from neighbouring countries at the International Defence Exhibition and Conference (Idex).
The first ship, designed by France’s Constructions Mecaniques de Normandie, is being built in the French port of Cherbourg. Work will begin on the three others in the UAE by late 2005, for delivery by 2009-2010, said William Stewart, an ADSB vice-president.
“The vision of the (UAE) government is to create a strong military ship-building capability in Abu Dhabi, rather than continually relying on imports,” Stewart said.
The Baynunah frigate, equipped with defence systems supplied by a unit of Italy’s Finmeccanica (SIFI.MI), is up to 30 per cent cheaper than comparable vessels built in Europe, thanks to lower labour and raw material costs and near-zero taxes in the UAE.
The UAE government set up ADSB in 1995 with shipyards to refit and repair commercial vessels. It soon diversified into repairing military ships, and now builds commercial boats, military speedboats and amphibious landing craft.
“Ten years ago, almost every piece of military equipment in the Gulf was imported. Now we are seeing more and more domestic production, which saves limited foreign exchange and creates jobs,” said defence analyst Christopher Foss.
The UAE’s military exports - until now mostly services such as maintenance and repair - remain a tiny fraction of defence imports, but they are increasing.
ADSB’s first export order, for a naval landing craft to Oman, announced at Idex, is estimated at a few million dollars.
Dubai’s government-owned boat builder Victory Team said it would supply 16 patrol boats to Kuwait’s coastguard. A source close to the deal said it was worth up to $10 million. Analysts said the UAE manufacturers could count on loyalty from fellow Gulf states for contracts, but they would have difficulty exporting to the developed world, except services. Abu Dhabi’s state-run Gulf Air Maintenance Company (Gamco), has a long-standing contract to service Tri Star aircraft for Britain’s Royal Air Force.
BAE systems has said it is close to agreeing a joint venture with Gamco to service Hawk trainer jets used by armed forces in the region.
