Comparable to other large defense shows such as DSEI (which is also in 2017), IDEX featured country pavilions, outdoor exhibits and was co-located with NAVDEX. IDEX is a bi-annual show held in the UAE, designed to showcase the country’s indigenous capabilities as well providing a platform for international companies to display their wares. As with previous years, the show was held at in Abu Dhabi at the ADNEC and features country pavilions, outdoor exhibits and was co-located with NAVDEX.

UAE Defense Spending Outlook

Despite downward pressure on oil and primary resource/commodity prices, the momentum behind UAE defense spending will be maintained amid regional instability underpinned by the need to maintain continued vigilance against asymmetric threats, as well as regional threats and rivalries.

Strategy Analytics estimates place 2016 UAE defense spending at just over $23 billion and forecasts continued growth through 2025 with spending approaching $31 billion. This defense spending includes spending on Personnel (military, civilian, health, etc.), Operations and Administration, Support (In-house), Training (in-house), Infrastructure etc., and focusing on procurement (including RDT&E) and support contract expenditure only translates into the portion of global defense spending that is available to the local and international defense industry through contracts for platforms, systems, subsystems and enabling technologies.

The resultant total available UAE defense opportunity represents 28% of UAE’s overall defense spending, and our analysis shows this growing at a 3.7% CAGR from 2016, from $6.4 billion to reach $8.6 billion in 2025.

UAE Defense Industry

To support this demand, the UAE has been cultivating indigenous capabilities through a number of holding companies that serve as umbrella organisations for local firms as well as providing the platform for international companies to provide their capabilities via contracts, joint ventures and other partnerships.

Emirates Defense Industries Company (EDIC)

EDIC was the primary local sponsor at IDEX with the company’s various subsidiaries and related joint ventures occupying a suitably impressive amount of real estate across both the indoor and outdoor pavilions. Representative examples include

  • AMMROC focused on providing MRO services for fixed and rotary aircraft;
  • Tawazun Dynamics working with Denel and providing a range of bomb kits;
  • NMIR Automotive offers a range of defense vehicles;
    • At IDEX 2017, NIMR Automotive and VOP CZ today signed a Strategic Collaboration Agreement for the marketing, distribution, production and after-sale support of the complete range of NIMR armoured vehicles to the Visegrád 4 countries - Czech Republic, Poland, Slovakia and Hungary.
    • Also announced was the UAE Armed Forces intention to award three new contracts to NIMR for over 1,750 armoured vehicles.
  • Thales Advanced Solutions is a joint venture with Thales (49%) focused on radar and communications plus other systems with a particular emphasis on developing indigenous capabilities in defense electronics.

Yahsat

While Yahsat is largely known as a commercial provider of satellite services, the company was showcasing its offerings for the defense sector at IDEX including a range of maritime, airborne and land-based terminal capabilities leveraging Ku and Ka band. Representative products on show included:

  • Skytech Antenna designed for maritime platforms offers dual-band Ku- and Ka-band capabilities in a form factor that weighs 40 to 50kg. Yahsat offers both TWTA and solid-state power amplifer options depending on customer requirements.
  • The 130kg KNS Antenna terminal targets larger maritime platforms and is offered in either Ku or Ka-band configurations.
  • Vehicle-based COTM capabilities are provided by the KNS and EMS Ka-band terminals with the EMS system also featuring integral GPS/INU.
  • The 13kg L3 Panther II Manpack terminal is designed to be carried in a rucksack and features manual tracking. The system is small enough to be carried as airline carry-on (although probably not on an Etihad flight) and can also be provided in a check-in case to be carried in the cargo hold.
  • The YahClick Terminal is a fixed satellite communications terminal for commercial and government land installatons.
  • The 28kg Carlisle IT FlightGear ARINC 791 Ku- and Ka-band terminal is primarily targeted at commercial air platforms and is also capable of supporting tri-band operations as well.
  • The Space Engineering Janus Aero Antenna is a 30kg low profile antenna also targeting the air domain and is supplied in Ku- or Ka-band options as well as Ku-Ka dual band configurations.

In the space arena, Yahsat currently has two satellites that support both military and commercial requirements and is working on a third satellite which will focus primarily on providing commercial coverage on Ka-band. Al Yah 3 will be based on Orbital ATK’s GEOStar platform and will serve the African and Brazilian market.

ADASI – Abu Dhabi Autonomous Systems Investments

ADASI – Abu Dhabi Autonomous Systems Investments works as a systems-of-systems integrator bringing together platforms and services via collaboration with specialist companies to operate, manage and maintain capabilities for domestic and regional customers. Some examples being showcased at IDEX 2017 included:

  • The Schiebel 200 rotary UAS platform
  • Aerostat platforms provided by TCOM with ADASI manufacturing the ground control stations and integrating EO-IR (based around products from L3 Wescam) as well as radar payloads for ISR missions.
  • The Piaggio P.1HH Hammerhead is also being considered as a future offering with the potential for nine platforms to be supplied later in 2017-18.

Observations from IDEX

Partnerships and an emphasis on indigenous capabilities were a core theme at this year’s IDEX 2017, as UAE companies showcased capabilities while foreign partners took advantage of a military spending spree to sign deals. The UAE and other countries in the Middle East have been relatively slow in adopting a “Made in XXXX” policy, relying instead on holding companies that provide the backbone for partnerships with international companies for platforms and systems, with local activity centered largely on maintenance and overhaul capabilities.

However, Strategy Analytics sees a quiet recognition that a more proactive approach is needed and while we do not expect to see advanced systems such as radar, EW, communications becoming a regional staple offering in the next ten years, international suppliers active in the Middle East should look to form more integral relationships with local industry to take advantage of local efforts in these areas if existing momentum in the region is to be maintained moving forwards.