Tawazun to invest up to Dh193m in UAE defence company Halcon
The state body has set up a Dh2.5 billion fund to invest in defence companies
Tawazun Economic Council, the state body tasked with developing a UAE defence industry, will potentially provide up to Dh193 million in funding to UAE-based Halcon Systems as part of its Dh2.5 billion Defence and Security Development Fund.
The funding agreement is worth Dh55m and will help develop the company’s production lines, with discussions under way for a direct investment of Dh138m, Tawazun said on Tuesday. Halcon is a unit of the Yas Holding Group. The agreement was signed during the International Defence Exhibition and Conference (Idex) taking place in Abu Dhabi this week.
“The Tawazun Economic Council is keen to support local strategic technology investments to meet the needs of the country and contribute in finding innovative solutions through investing in the development of new and advanced technologies, or through the acquisition and development of companies,” said Tareq Al Hosani, chief executive of Tawazun.
Tawazun recently set up the Dh2.5bn fund as part of efforts to develop a local defence and security industry amid Abu Dhabi’s plans to boost the contribution of the non-oil sector to the emirate’s GDP. The Dh55m amount is the second investment by the fund, which has invested Dh460m in Russian automotive brand Aurus, which specialises in luxurious and armoured vehicles. The fund also plans to buy 30 per cent of Sharjah-based Al Marakeb Boats Manufacturing.
The fund will provide the Dh55m loan with flexible terms to Halcon, which will be used to develop and expand its facilities and production lines in Abu Dhabi.
Discussions are under way for another Dh138m in direct investment to help the development and manufacture of a series of guided weapon systems in return for intellectual property royalty rights.
Halcon expects the development and manufacture of a smart missile control and guidance panel to be delivered over the next three years, said Saeed Al Mansoori, chief executive of Halcon.
Updated: February 19, 2019 05:04 PM