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United Arab Emirates Defence and Security Report Q2 2008

Published by: Business Monitor International

Published: Apr. 18, 2008 - 50 Pages


Table of Contents


Executive Summary
SWOT Analysis
United Arab Emirates Political SWOT
United Arab Emirates Security SWOT
United Arab Emirates Defence Industry SWOT
United Arab Emirates Economic SWOT
United Arab Emirates Business Environment SWOT
Political Overview
Security Risk Analysis
BMI’s Security Ratings
Risk Ratings
MEA: Security Ratings
MEA: State Vulnerability To Terrorism Index
Regional Security: The Middle East and North Africa
Inter-State Conflicts
Internal Conflicts
UAE Conflict Risk
UAE Terrorism Risk
UAE Physical Safety Risk
Security Risk Overview
Internal Security Situation - Historical Background
Emirate Rivalry
Insurgency and Terrorism
Latest Developments
Internal Security: Recent Developments
External Security Situation
Background
Regional Security
Iran
Global Engagement
Latest Developments
External Security: Recent Developments
Military Structure & Defence Industry
Armed Forces
Table: Regional Armed Forces (including conscripted)
Current Strength
Army
Navy
Air Force
International Deployments
Weapons of Mass Destruction
Market Structure
Arms Trade Overview
Imports
Exports
Industry Trends & Developments
Procurement Trends & Developments
Background
Latest Developments
Defence Industry: Recent Developments
Industry Forecast Sce41
Table: UAE Defence Sector - Army Enlargements Historical Data & Forecasts
Table: UAE Defence Sector - Defence Expenditure Historical Data & Forecasts
Immediate Opportunities
Key Risks to BMI’s Forecast Scenario
Macroeconomic Forecast
Table: United Arab Emirates - Economic Activity
Company Profiles
Abu Dhabi Ship Building (ADSB)
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Defence Industry
Sources


Abstract

Tension in the Gulf continued to rise in Q407 as a result of the face-off between the US and Iran over the
latter’s nuclear programme. The UAE faced the task of navigating a path between its strategic ally, the
US, and its close neighbour and trading partner, Iran. The United Arab Emirates (UAE) also had to take
account of security scenarios in the immediate neighbourhood. According to the US Defence Security
Cooperation Agency (DSCA) in December 2007, weapons manufacturers Lockheed Martin and Raytheon
were working on an order worth up to US$9bn to supply the Patriot Advanced Capability - 3 missiles
system and associated equipment and services to the UAE. The Patriot system has been promoted
throughout US allies in the Gulf as a defensive shield in the context of a potential military confrontation
with nearby Tehran, which has been building up its arsenal of offensive missiles. DSCA also named
Raytheon as the main supplier of an additional US$1.36bn order for PAC-3 missiles, PAC-2 missile
upgrades, and Patriot ground support equipment upgrades. Another manufacturer, Northrop Grumman,
was reported to be working on a US$437mn order to deliver upgrades and refurbishments of E-2C aircraft
for the UAE.


The UAE is arguably the most politically stable country in the Arab world. It is currently edging towards
reforms, largely at the behest of the US’ limited agenda to introduce popular participation in the Gulf
States, but these will be symbolic and will not cause any fundamental shifts in the power dynamics. The
UAE has few explicit security threats. However, its inauspicious geo-strategic location dictates a
permanent state of insecurity. Minor territorial disputes with Iran continue to put a low-level security
pressure on the Emirates, while instability in nearby Iraq and political uncertainties in the wider region
provide reason for caution. The security threats to the UAE in terms of insurgency and terrorism are thus
far not significant.


The UAE’s 10-year modernisation programme has created a military with the potential to challenge Iran
and Saudi Arabia for regional dominance. The confluence of strategic imperative and immediate wealth
contributed to the UAE’s establishment as a procurer, not a producer, of arms. The UAE lacks an
established local defence industry and its forces are almost entirely reliant upon foreign procurement,
training and expertise. The Offsets Group Programme mandates that foreign contractors establish joint
ventures with local firms, providing the opportunities for technology transfers and the establishment of
local maintenance and manufacturing facilities. A number of indigenous firms are however making
limited progress in strengthening their position within the industry. Strong support for advanced military
procurements and upgrades drive the industry for the medium term. Coming to the end of a 10-year
US$15bn defence modernisation programme, the UAE is the most rapidly developing military power in
the Gulf region. The UAE engages in a brisk arms trade with a variety of international suppliers. Regional
security imperatives mean that the UAE is consistently looking to maintain its credible deterrent force by
importing the latest technologies. To dilute the potential political effect of heavy reliance of foreign arms
producers, the UAE consciously aims to diversify its suppliers among the four main global suppliers of
arms: the US, France, the UK and Russia. The UAE does not export arms to any significant degree.
It seems the Emirates have little to worry about for the time being - a stable political system, a strong
economy, limited security threats and a military with technology that can, in some aspects, rival the best
in the world.




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