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Tawazun Intend to Open an New Office in Turkey-Defence Turkey Interview

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Tawazun Intend to Open an New Office in Turkey

Turkish and UAE defence industries have strengthened a collabaration with more military programmes for decade. Tawazun Holding is a strategic investment holding company focused on defence and specialized manufacturing in UAE. Tawazun Holding CEO Mr.H.E. Saif Mohamed Al Hajeri assessed two countries which have been developing relations, latest status of IAIS established by ASELSAN and IGG as a joint venture company, UAE- Turkey cooperation on export to 3 rd countries and future relations of two countries for Defence Turkey Readers.





Defence Turkey: First of all, thank you for this interview. Tawazun Holding has established attractive ventures through partnerships and constructive relationships, and by making strategic, profitable investments in focused sectors creating value and transferring capability to the UAE. Could you please inform us the structure, mission of Tawazum Holding?

Tawazun is contributing to the fast-growing industrial backbone of the UAE by helping to build its strategic manufacturing and engineering businesses.

We feel that the development of a sustainable manufacturing industry is critical to the successful long-term diversification of the economy. Today, manufacturing accounts for the second highest sector contribution to our national GDP.

Tawazun’s structure encompasses two separate business streams. Firstly, we are facilitating the building of strategic manufacturing and engineering businesses through joint ventures and strategic investments. Currently we have 14 subsidiaries under our Holding company which are producing a range of products focused on the defence industry, such as munitions and armoured vehicles, as well as producing components for the oil & gas and aerospace sectors.

We established a facility outside the city of Abu Dhabi - the Tawazun Industrial Park (TIP) – which is already housing a number of dynamic and diversified manufacturers.

Secondly, but not less importantly, the Tawazun Economic Council oversees the Industrial Development Programme, invests in skilled and dedicated people and cutting-edge technology in order to achieve our national goals. This programme is run in cooperation with key industrial players from around the world and helps to build mutually beneficial long-term partnerships.

We have a long-term vision at Tawazun, and we have structured a strategic plan that will allow us to meet that vision. Our focus is on expanding our portfolio and developing opportunities where we have identified gaps in the current or future market place. In order to do this, we may need to establish more partnerships.

Defence Turkey: UAE has obviously made some fundamental steps during recent years, both at national and international levels. Could you give us some information on the achievements, developments, projects accomplished by Tawazun?

The most recent project is Tawazun Dynamics, a joint venture with the dynamics division of Denel, South Africa’s largest defence manufacturer, to build the Middle East region’s first facility for the development, manufactureing, assembly and integration of precision-guided systems for conventional air munitions.

Defence Turkey: Could you please enlighten us on your upcoming programmes?

Tawazun Holding and its subsidiaries currently have several programmes in the pipeline and will be announced independently as they come.

Defence Turkey: How do you assess UAE and Turkey Defence cooperation and activities?

The UAE – thanks to a strong and internationally respected leadership - is being recognised as a politically stable country and is globally viewed as a liberal and forward-thinking nation with an investment environment to match. It offers long-term industry potential for investors from across the world and is increasingly focusing on diversifying the economy in order to create and maintain sustainable futures for its people.

Turkey is recognized for having invested in substantial defence procurements, and its military modernization programme is currently approaching completion. The country operates a well-developed domestic defence industry which is primarily dependent on Turkish defence expenditure.

Today, thanks to the leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan, the President of the United Arab Emirates, as well as His Excellency Abdullah Gül, President of the Republic of Turkey, relations between the two countries are witnessing significant growth at all levels.

Bilateral relations have been built on solid foundations of mutual interests and respect, underlining the sincere desire of the President of the UAE to deepen these bonds and push them forward for maintaining security and stability in the region.

As a strategic investment firm under the UAE government, Tawazun has established itself as an active industrial investor internationally by partnering with a hand-picked selection of world-class market leaders to build skills, expertise, products and systems in the UAE with the global export operations.

Following a recent visit to the UAE, Turkey has expressed its interest in bolstering defence industry ties with the UAE as part of efforts to boost its defence industry cooperation with Islamic states. Historically, the strategic manufacturing and engineering sector in the UAE has been built through partnerships in part thanks to the successful 20-year old Industrial Development Programme which has partnered international firms with the UAE local private sector. At Tawazun, our strategy is designed to drive change within the global marketplace; we remain keen to hold talks that will bolster cooperation with Turkey – be it through partnerships, joint ventures or acquisitions.


Defence Turkey: ASELSAN and IGG established a Joint Venture Company in UAE. Could you please enlighten us the recent status of the activities carried out by IGG ASELSAN Integrated Systems focused on "Stamp" and "Stop"?

IGG and ASELSAN have had a very good relationship and cooperation over the years, the JV between IGG and ASELSAN, launched in 2011 is an offset project as well and was the first offset project to be established after the new policy of Tawazun Council.

IGG ASELSAN Integrated Systems facility is being established. The set up operations and the procurement of all the advanced equipment started earlier this year and the facility should be ready to start operating and assembling and producing "stamp" and "stop" (tactical navy turrets) by the 2nd or 3rd quarter of 2013.

Defence Turkey: In the coming future, do you plan to establish new technological cooperation areas which could be carried out by IGG- ASELSAN Integrated Systems?

IGG has a very good relationship with ASELSAN and they continue to work together in the different fronts. The focus at the moment is to ensure that the operations are set up in the best quality and the systems are delivered to the customers. IGG and ASELSAN foresee several new opportunities in the future that could potentially support more activities and new technologies to be produced within the IGG- ASELSAN Integrated systems.

Defence Turkey: Roketsan has established close relationships with UAE with contacts since early of 2000s. The contract was signed between Roketsan and Burkan Munitions Systems (BMS) and a joint production venture was established. Within the scope of these achievements, how do you assess your cooperation with Roketsan?

The cooperation between the two companies proved to be successful and opened the door for further co-operation, one of which is that Tawazun and Roketsan are currently working on: the co-production and marketing of the CIRIT system.

Defence Turkey: As you are aware, Cirit is in Turkish Armed Forces’ inventory. Will there be any opportunity be arisen in coming days focused on any cooperation for Cirit?

The two companies saw an opportunity not only in co-production and marketing but also in further development and integration of the CIRIT system to open new markets.

Defence Turkey: The United Arab Emirates has issued an international request for proposals for up to 600 8x8 wheeled combat vehicles. What is the latest status in this project?

Tawazun was mandated last year by the GHQ of the UAE Armed Forces to supervise the tender and contract awarding process for the manufacturing of 8x8 armoured vehicles. The project is expected to support the GHQ’s strategy of promoting national investments and providing career opportunities for UAE nationals in the strategic manufacturing field/defence sector.

Defence Turkey: Turkey officially started future fighter (FX), advanced jet trainer project (TX) and indigenous helicopter projects carried out by TAI. Is it considered or planned that UAE will be the partner of these programmes? What is your assessment in this regard?

Tawazun has big ambitions for growing its aerospace business. We certainly aspire to expand our collaboration with local and international players to further support the existing programmes and enhance capabilities. Yet, we have no current plans for joint development programmes or direct partnerships in this sector.

Defence Turkey: Could any joint UAE-Turkey cooperation on export to 3rd countries be considered in the future? What is your foresight in this regard?

Our UAE-made products and services are currently being exported to continents from all over the world, including Africa, Latin America, and Asia.

We believe that the venue for export growth is present locally (in the UAE) as well as internationally. We are committed to being part of that potential growth and being the preferred supplier of choice for the international market. We are looking to ensure that we can support our international partners- including Turkey- through competitive advantages such as price, customer support and quality.

Defence Turkey: What will be the other plans for the joint investment and joint production with Turkey?

Tawazun intends to open an office in Turkey to assess and identify business opportunities mainly in the areas of defence industry and advanced technologies.

Defence Turkey: Finally would you like to give a message to our readers?

We are keen to strengthen our cooperation and partnerships with the Turkish leaders in manufacturing, R&D, training and exchange of expertise. This innovative approach will be beneficial for all the parties and lead to new opportunities not only in the defence industry but in other sectors as well.
 
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