2. Defence Procurement International - Winter 2016/17
35
Made In The UAE
State-led armoured vehicle production in the UAE has been bolstered by the emergence of
a privately-led armoured vehicle sector, which is enjoying export success.
By Matthew Hedges
LAND SYSTEMS
T
he domestic production of
armoured vehicles in the Middle
East is part of an unlikely
tradition that has paved the way
for further capability developments
within several Middle East North
Africa (MENA) states. Jordan, Saudi
Arabia, Turkey, and the United Arab
Emirates (UAE), are the leading Arab
states within the field of indigenous
production of armoured vehicles.
Prompted by the need for greater
operational independence, advanced
technical understanding and an
optimised procurement cycle that can
alleviate financial burdens, the regional
production of armoured vehicles
clearly signifies an achievable example
for other developing states.
Most recently, the UAE has made
progress moving from state-led and
foreign-sponsored maintenance,
repair, and overhaul (MRO) capabilities,
to an ecosystem that has attracted
and fostered a privately led armoured
vehicle sector, which has enhanced
UAE-based production.
The development of international
armoured vehicle market capabilities
has somewhat stagnated in recent
years, however. Since the wars in
Afghanistan and Iraq, a greater
emphasis has been placed on Mine
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Defence Procurement International - Winter 2016/17
Resistant Ambush Protected (MRAP)
armoured vehicle protective capabilities.
This has seen the capability gap narrow
with non-traditional manufacturers,
reducing the market share of traditional
market leaders.
STATE-LED CAPABILITIES
Armoured vehicle production
capabilities were prompted by Abu
Dhabi’s 1995 purchase of more
than 400 French-built Leclerc main
battle tanks (MBTs); the delivery was
completed in 2004. The domestic
production and servicing capability of
primarily Emirati vehicles was prioritised
by the Emirati leadership, and thus
Al Taif Technical Services and NIMR
were born; the former focusing on
providing MRO services and the latter
manufacturing armoured vehicles.
Al Taif was established in 2006, under
the umbrella of the Abu Dhabi-based
sovereign wealth fund, Mubadala. Its
premise was to provide MRO services
to the UAE General Headquarters
(GHQ), act as a conduit for strategic
partnerships with original equipment
manufacturers (OEMs) and to contribute
to an integrated life-cycle support
system. Thus, Al Taif signed a 20-year
contract to formalise its long-term
support and assistance to the UAE
Armed Forces, with only one pricing
amendment so far.
Al Taif succeeded because of its direct
assistance from OEMs. It is an integral
and successful example of the public-
private partnership that has suited
both the Emiratis and foreign entities.
Burdened by its deficiency in critical
and well-trained personnel, the UAE
must lean on private capabilities to
supplement its own resources to ensure
a well-maintained operational force.
NIMR was announced in 2000 as
a joint venture with Jordan’s King
Abdullah II Design and Development
Bureau (KAADB) and Bin Jaber
Enterprises. NIMR’s design was initially
constructed with aid from Russia’s
Gorky Automobile Plant. To develop
and propel NIMR platforms, MBDA and
Rheinmetall contributed to the evolution
of NIMR variants. In November 2015 it
was announced that NIMR had signed
a $63 million contract with Denel
Vehicle Systems of South Africa for the
license to produce N35 (formerly
RG-35) advanced mine-protected
vehicles in the UAE.
NIMR’s development was promptly
built on at IDEX 2001 where the first
public prototype of its 4x4 range was
displayed. AT IDEX 2005, the first 6x6
variant appeared and signalled the rise
of the Emiratis’ focus on the domestic
production of capabilities. Five years
later, the Abu Dhabi-based investment
fund, Tawazun, acquired a 60% stake
in NIMR with the remaining 40% still
owned privately.
Subsequently, UAE facilities were
expanded with a new 37,000sq metres
factory commencing construction
at Tawazun Industrial Park (TIP) a
year later, and the following year, an
agreement was signed with Algeria to
jointly produce an unannounced number
of 4x4 armoured station wagons.
With the 2014 announcement of the
formation of the Emirates Defence
Industries Company (EDIC), NIMR
transferred majority ownership to the
newly established state conglomerate.
Other platforms built by Abu Dhabi
have included: the Mini Jobaria Multi-
Launch Rocket System (MLRS), in
combination with Turkey’s Roketsan;
and the Enigma 8×8 Armoured
Modular Fighting Vehicle, developed
by Emirates Defense Technology.
The inclusion of a BAE Systems’
M777 155mm lightweight Howitzer
complemented the Engima 8x8.
The design of UAE-manufactured
platforms has arrived because of the
successful transfer of technology.
Only recently has the UAE closed the
production loop, sending feedback
and projecting future operational
requirements. While in some areas
of the UAE defence industry, there
is a clear utilisation of domestically
produced technology (munitions and
UAVs), the state-owned production
of armoured vehicles lags. Given
the contrasting success of Al Taif,
the advancement of the UAE’s MRO
proficiency should be prioritised
to ensure the UAE maintains its
momentum within this sector.
THE EMERGENCE OF THE
PRIVATE SECTOR
In combination with state-led efforts,
several privately-owned entities
appeared, which complemented
and competed with state-owned
organisations. Companies that have
successfully utilised the UAE as an
operating base include: Streit Group,
Mezcal Security Vehicles, Inkas Vehicles,
Minerva Special Purpose Vehicles
(MSPV), Shell Armored Vehicles,
Harrow Security Vehicles and ASV
Armored Cars.
The most prominent and successful
example is Streit Group; a Canadian
manufacturer, which established its first
overseas manufacturing facility in 2008
when it registered its UAE presence in
the northern town of Ras Al Kahimah.
Streit Group builds a wide array of
armoured vehicles including MRAP
Streit Group assembly line at its Ras Al Khaimah armoured vehicles manufacturing facility. (Copyright Streit Group)
4. LAND SYSTEMS
armoured personnel carriers, tactical
armoured vehicles, and is well known
for its capability in manufacturing
armoured civilian cars.
Streit Group is famed for its
independence as a private entity
operating independently from branch
to branch; its UAE office is a separate
entity from its Canadian branch. Thus, it
can offer high specification capabilities
without referring to international
legislation as stringently as other more
pronounced manufacturers. Streit
Group holds a series of international
manufacturing qualifications and is
lauded for its promptly available and
cost-efficient platforms.
Private sector manufacturers are
attracted to the UAE due to its mix
of liberal trade and licensing laws,
free zone ownership legislation, low
manpower costs, and its position within
a region of high military spending.
EXPORT SUCCESS
The dual track approach taken by
the Emiratis has placed a similar
emphasis on the successful export of
domestically manufactured vehicles to
subsidise national capabilities as well as
provide domestic MRO services. NIMR
succeeded in this sector with its 2014
co-production agreement with Algeria
standing out as a clear indication of
its achievements.
Further successes came when in
2009, Libya ordered 120 of the NIMR
4x4 light tactical armoured vehicle
variants. This stands in contrast to the
procurement of more than 1,000 NIMR
vehicles by the UAE Armed Forces. It
should be noted that when in 2013, UAE
GHQ ordered 1,500 NIMR vehicles, it
subsequently purchased 4,500 MRAPs
from US firm Oshkosh.
Armoured vehicles at IDEX
(Photo courtesy of IDEX)
Private sector sales have had a
greater tangible degree of success with
Streit Group successfully exporting its
products to a wide array of countries in
Africa and Asia, including Afghanistan,
Iraq, Libya, Nigeria, the Philippines,
Singapore, South Sudan, and Sudan.
Since its expansion in the UAE, Streit
Group has gone on to establish a
presence in Iraq, Pakistan, Turkey, the
UK and the US.
The differing levels of success
highlight the challenges that the local,
state-owned industry faces in terms of
competing in the international market,
even though the demand for armoured
vehicles from Africa and Asia is high.
Stuck between providing domestic
capabilities and creating commercially
successful platforms, the domestic
production of armoured vehicles within
the UAE has stagnated. The UAE could
learn from the success of the private
sector and target poorer countries with
more rudimentary designs.
FUTURE REQUIREMENTS
Rational assumptions would
suggest that lower oil prices would
reduce regional military spending;
so far, however, there has not been
a detrimental effect. The military
spending behaviour of the UAE and
other GCC states has maintained a
consistent policy of above-average
yearly expenditure. However, the UAE’s
adoption of a joint logistics model
indicates a possible attempt by other
states to follow an optimised strategy to
enhance military procurement.
Fostering the development of
indigenous, cost-efficient manufacturing
and maintenance capabilities, ensures
the UAE and other MENA states,
a continued ability to operate and
respond to threats, thus ensuing their
long-term competitiveness. Much of the
technology transferred to the UAE has
been used to build domestic capabilities
and has come from non-traditional
partners: Belarus, Romania, Russia,
Serbia and South Africa.
While the UAE, and other states,
are likely to continue to import prime,
industry leading Western technology
to provide the bulwark of capabilities,
they will also continue to facilitate
the osmosis of proficiencies to
provide long-term sustainability and
educational development.
The evolution and diffusion of
asymmetrical, predominantly urban-
based threats has induced the
development of armoured vehicle
production within the MENA region.
Abu Dhabi’s interpretation of threats is
entirely domestic in nature, and indicates
why in response to the Arab Spring, the
UAE purchased more than 5,000 MRAPs
and other armoured vehicles.
Like other aspects of the UAE defence
industry, the development of capabilities
is entirely at the behest of foreign OEMs
and other technology partners. While
the development of Emirati armoured
vehicle capabilities was initially aimed at
supplementing capability deficiencies,
UAE-based armoured vehicle
production is beginning to provide
capable research and development
(R&D) to independently develop
armoured vehicles.
ABOUT THE AUTHOR
Matthew Hedges holds a Masters
Degree in International Relations of the
Middle East from the University of Exeter.
He is a PhD candidate at the University
of Durham where he is researching
defence and security policy in the GCC.
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