Tawazun Economic Council, the UAE defense and security industry enabler, announced a series of changes to the Tawazun Economic Program through which foreign and local investment is channelled into key sectors of the economy.
His Excellency Tareq Abdul Raheem Al Hosani, Chief Executive Officer of Tawazun Economic Council, said: “We have strengthened the Tawazun Economic Program and invested in enhancing and uplifting its features in order to improve its overall effectiveness in supporting key strategic UAE government objectives, while also creating more value for our partners, the Defense Contractors.”
“Tawazun has long sought ways in which to deepen the partnerships we have with our contractors in ways that go beyond defense and security, and to harness contractor expertise to drive value for wider society.”, he added.
Commenting on the benefits of the new program, Matar Al Romaithi, Chief Officer, Economic Development Unit, said: “We have broadened the sectors of the economy into which contractors can invest, and we have increased the number of ways in which contractors can interact commercially with local businesses in these sectors. The changes, which reflect the increased sophistication of the UAE defense and security industry, will create and unlock sustainable long-term opportunities to meet Tawazun’s mandated aim of supporting the overall development of the UAE.”
Expressing his delight, Al Romaithi added: “The new Tawazun Economic Program is more value-focused than previously and now offers our partners greater flexibility. The newly introduced Project Banks feature which allows Defense Contractors to select ideas from a cart of pre-approved concepts is testament to Tawazun’s commitment to introducing ease, convenience, and flexibility to the overall process.
As a framework the new program is less complex to operate within and offers an increased range of tools for engagement. I am thrilled about the potential it has to drive investment into the UAE economy and to create positive change across the defense and security ecosystem.”
The new program allows for the development of technology driven solutions that extend beyond the defense and security industry, to include: Aerospace; Infrastructure and Transportation; Education Technology; Sustainability; Environment and Climate Change; and Food and Water Security.
Investment vehicle options available to contractors have also been widened. They now include joint ventures with local partners; contractual engagements with local businesses; and capability development programs through which technology expertise is shared with local partners or jobs are created for Emirati citizens.
Other key changes to the Tawazun Economic Program made following extensive consultation with existing defense and security contractors include:
- The removal of input and output ratios for credits.
- Enhanced parameters for the assessment and apportioning of credits
- An expanded bonus multiplier scheme that rewards projects in the higher end value chain, local content generation and high skilled jobs creation.
- The permitting of pre-offsets and credit banking.