Tawazun Council and AD Ports Group have joined forces to develop a strategic industrial base in Abu Dhabi in a bid to enhance the UAE’s defence manufacturing capabilities.
Al Selmiyyah Defence Industrial Free Zone will be a significant step in advancing the country’s plans to build “an advanced and sustainable national defence industrial base”, state news agency Wam said on Wednesday.
The zone is expected to help boost national security and long-term defence preparation.
Designed to attract leading original equipment manufacturers (OEMs), it will enable domestic production and support the expansion of industrial operations, Wam quoted the companies as saying.
The joint venture aims to attract global defence companies to the UAE and set up “high-value partnerships” to build national capabilities.
“This partnership represents a strategic milestone in the development of a sophisticated national defence industrial ecosystem built on strengthening sovereign capabilities and expanding high-value industrial partnerships,” said Nasser Al Nuaimi, Secretary General of Tawazun Council.
“The development of Al Selmiyyah Defence Industrial Free Zone … [will] accelerate the growth of the UAE’s defence industrial base.”
High-value investments
The two companies have not shared the development timeline of the free zone, but Wam reported it will open up more opportunities for high-value industrial investments in the country's defence sector.
Al Selmiyyah is expected to support technology transfer to local manufacturers and will enhance the participation of national companies and small and medium enterprises (SMEs) within defence supply chains.
The initiative is in line with the government's agenda of "industrial sovereignty" and is to contribute to the UAE’s broader objectives of advancing its high-tech manufacturing and strategic industries sectors.
“The partnership with Tawazun Council will reinforce the UAE’s position as a global hub for advanced industries," said Capt Mohamed Al Shamisi, managing director and group chief executive of AD Ports Group.
Al Selmiyyah represents a "strategic addition to our free zones portfolio and underscores our ability to attract and develop high-value, priority sectors within an integrated ecosystem of advanced infrastructure and global logistics services", he added.
Defence focus
Tawazun Council is a state body tasked with driving economic growth and the development of the UAE’s defence and security industries. Set up in 1992, the council has enabled strategic investments in local manufacturing capabilities and contributed to the setting up of more than 90 companies and investment vehicles across 11 key sectors, including defence manufacturing.
The Tawazun Industrial Park currently hosts 45 global, regional and local companies in defence, security and advance manufacturing sectors.
The UAE also launched Edge Group in 2019, which specialises in building advanced technology for weapons systems, cyber protection and electronic warfare, with more than 35 companies under its umbrella.
More than 85 per cent of Iranian drones launched at the UAE were eliminated by Edge Group’s systems, Hamad Al Marar, managing director and chief executive of Edge Group, told The National this week at the Make it in the Emirates event in Abu Dhabi.
Industrial strategy
Expansion of the defence manufacturing base is part of the UAE's broader strategy of developing its industrial sector, a central pillar of economic diversification efforts to reduce reliance on hydrocarbon revenue.
The Emirates launched its industrial strategy, Operation 300bn, in 2021, to position itself as a global industrial hub by 2031. The country’s overarching agenda is focused on priority industries including chemicals, construction, machinery and equipment, food, transport, metals, pharmaceuticals, plastic and fibreglass, and wood and paper.
The Emirates has in recent years also invested heavily in advanced technologies and artificial intelligence, with multibillion-dollar projects being built in Abu Dhabi.
