The home-grown Enigma armoured personnel carrier is not just a way for the UAE to carry troops into battle; it represents how the defence industry is helping to diversify the country’s economic base.
The UAE is boosting its defence sector through the creation of a new state champion, Emirates Defence Industries Company (EDIC), and offset agreements with major international arms companies to help develop sector-specific expertise.
The country devotes about US$20 billion of its budget to military spending. That puts it in 15th place among the world’s big military spenders. But national security is not the only reason for this level of expenditure.
“It looks like increased defence spending, but really it is industrialisation,” said Sabahat Khan, senior analyst at the Institute for Near East and Gulf Military Analysis. “The increased spending is primarily for its economic benefits – and to lay the foundations for bigger things.
“From armoured vehicle manufacturing to satellites, from maintenance, repair and overhaul to flight training academies and geospatial mapping, the UAE is doing a lot,” he said.
Along with sectors such as finance, trade and tourism, defence is rapidly becoming a key plank in efforts to wean the economy away from dependence on hydrocarbons. It is a theme that is being played out across the Arabian Gulf.
“The defence sector is one of the main cornerstones of the UAE’s diversification efforts,” said Ali Majed Al Mansoori, the chairman of Abu Dhabi’s Department of Economic Development.
EDIC was formed in a merger of business units from Mubadala, Tawazun, and Emirates Advanced Industries in December. The merger “creates significant opportunities for industry growth”, Mr Al Mansoori said.
It means that “the domestic defence industry will produce increasing numbers of state- of-the-art products for export, which will boost the country’s manufacturing and skills base”.
Sixteen business units, including the Advanced Military Maintenance, Repair and Overhaul Centre, previously owned by Mubadala, and Caracal Light Ammunition, previously owned by Tawazun, will form part of the new entity.
Many of these units have benefited from offset agreements with international arms companies, in which expertise and skills were provided by manufacturers like Boeing, Lockheed Martin and Airbus.
Strata, a Mubadala company, was awarded contracts for the assembly of Airbus parts as part of offset agreements.
Homaid Al Shemmari, the head of Mubadala Aerospace, talked of transforming Al Ain, where Strata is based, into “the Seattle or Toulouse” of the Middle East, in reference to homes of Boeing and Airbus.
Boeing signed a similar agreement in 2011 with Tawazun Precision Industries, now part of EDIC.
The UAE’s growth comes mainly from adding labour and capital to the country’s economy, not from gains in productivity, economists have argued. This means that the UAE grows by adding more people and companies, rather than through technological change and improving skills.
The result is that UAE’s export-oriented industries make relatively unsophisticated products, said Hamed Al Hashemi, director of planning at the Abu Dhabi Department of Economic Development, at a talk last October.
But investment in defence industries, which vary in complexity from the assembly of engines to the design of satellites, should increase the “sophistication” of the country’s manufacturing output, said Mr Al Mansoori.
Mr Khan said: “It’s about capacity-building: the government is focusing on developing military support services, and building research and development capacity.”
Local defence companies also benefit from the UAE’s significant investments in state champions in aviation and aluminium.
Etihad Airways’ purchase of Abu Dhabi Aircraft Technologies, a maintenance, repair and overhaul company, from Mubadala Aerospace last May, illustrates the scope for synergies between the government’s military and civilian development spending, Mr Khan said.
Offset agreements, which are legal requirements for defence companies to contribute to the local economy, are another important part of the UAE’s procurement policy.
The government’s Offset Program Bureau (OPB) explained that defence contracts are rated in terms of their contribution to the local economy, either through technology transfers, or the establishment of joint ventures with local companies.
Defence contractors that increase employment for UAE nationals and increase skills and capacity in key industries are preferred, according to guidance published by the bureau.
The OPB credits its offset policy with having created “thousands of job opportunities for UAE nationals in knowledge-intensive and value-added projects, speeding up the transfer of technology and providing expertise through various joint ventures with foreign investors”.
Mr Khan says the offset programme has been successful. “A lot of these companies started as joint ventures as part of offset agreements, but are now developing into strong sustainable businesses,” he adds.
Mr Al Mansoori said: “[Offsets] have contributed to significant growth in the domestic defence sector in the fields of shipbuilding, systems integration, naval logistics and MRO activities.”
Regional political instability, and the UAE’s increasingly assertive role on the world stage, have further boosted defence spending. Recent military strikes against extremists in Syria have also underlined the UAE’s willingness to deploy hard power in the region.
While a low oil price may threaten revenues in the short term, the government has repeatedly expressed its determination to maintain levels of spending – including defence expenditures. GCC defence spending accounts for 83 per cent of total Middle East military spending, according to the research company IHS Jane’s .
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TEAMS
US Team
Dustin Johnson, Jordan Spieth
Justin Thomas, Daniel Berger
Brooks Koepka, Rickie Fowler
Kevin Kisner, Patrick Reed
Matt Kuchar, Kevin Chappell
Charley Hoffman*, Phil Mickelson*
International Team
Hideki Matsuyama, Jason Day
Adam Scott, Louis Oosthuizen
Marc Leishman, Charl Schwartzel
Branden Grace, Si Woo Kim
Jhonattan Vegas, Adam Hadwin
Emiliano Grillo*, Anirban Lahiri*
* denotes captain's picks
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Federer's 11 Wimbledon finals
2003 Beat Mark Philippoussis
2004 Beat Andy Roddick
2005 Beat Andy Roddick
2006 Beat Rafael Nadal
2007 Beat Rafael Nadal
2008 Lost to Rafael Nadal
2009 Beat Andy Roddick
2012 Beat Andy Murray
2014 Lost to Novak Djokovic
2015 Lost to Novak Djokovic
2017 Beat Marin Cilic
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
UAE currency: the story behind the money in your pockets
The specs: 2018 Mercedes-Benz GLA
Price, base / as tested Dh150,900 / Dh173,600
Engine 2.0L inline four-cylinder
Transmission Seven-speed automatic
Power 211hp @ 5,500rpm
Torque 350Nm @ 1,200rpm
Fuel economy, combined 6.4L / 100km
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
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COMPANY%20PROFILE
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More from Aya Iskandarani
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
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If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
MATCH INFO
Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)
TV: BeIN Sports
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
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Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Details
Through Her Lens: The stories behind the photography of Eva Sereny
Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books
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- Join parent networks
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
ABU DHABI T10: DAY TWO
Bangla Tigers v Deccan Gladiators (3.30pm)
Delhi Bulls v Karnataka Tuskers (5.45pm)
Northern Warriors v Qalandars (8.00pm)
Abu Dhabi GP Saturday schedule
12.30pm GP3 race (18 laps)
2pm Formula One final practice
5pm Formula One qualifying
6.40pm Formula 2 race (31 laps)
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What's in the deal?
Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
