UAE Merges 11 Units To Create Large Defense Company

Mubadala Development Company and Tawazun Holding on Tuesday announced the launch of the Emirates Defence Industries Company (EDIC), the UAE's first integrated national defence supplier.

According to Arabian Business, the new company will comprise 11 units including the subsidiaries of Mubadala, Tawazun and Emirates Advanced Investment Group (EAIG) at the conclusion of the first phase of integration, with a formal transfer of ownership from January.

"The outcome from this process will be an integrated defence platform benefiting from improved alignment, performance and increased capacity, which is better positioned to serve the UAE Armed Forces and compete for business in the region," said Homaid Al Shemmari, chairman of EDIC in comments published by news agency WAM.

"EDIC creates significant opportunities for industry growth, and we remain committed to our companies, customers and partners in realising this opportunity," added Al Shemmari.

Companies identified for integration during the first phase are Al Taif Technical Services, Bayanat for Mapping and Surveying Services, and Horizon International Flight Academy from Mubadala; NIMR Automotive, Tawazun Dynamics and Tawazun Precision Industries from Tawazun; and C4 Advanced Solutions, Global Aerospace Logistics, Naval Advanced Solutions, Secure Communications and Thales Advanced Solutions from EAIG, according to the report.

Several more industrial services subsidiaries of Mubadala and Tawazun are being considered for integration during a second phase, which will begin early in 2015.

Once fully integrated, EDIC will comprise companies including manufacturing, training, mapping, logistics, technology development and communications as well as MRO services for air, land and sea platforms, it added.