Tawazun Economic Council announced the launch of the Defense and Security Development Fund with a capital of AED 2.5 billion (equivalent of USD 680 million). The Fund contributes to the enablement of the defense and security sector and its contribution to economic development in the United Arab Emirates.
The Defense and Security Development Fund will have presence at IDEX 2019 as part of the Tawazun pavilion and will unveil key financing and investment programs.
His Excellency Tareq Abdul Raheem Al Hosani, Chief Executive Officer of Tawazun Economic Council, said that the Council established the Fund in order to encourage the private sector to invest in the fields of defense and security, and contribute to the development of national and technological industries, including SMEs – in the aim of building a diversified and sustainable national economy. The launch of the Fund stems from the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, Ruler of Abu Dhabi, and President of the United Arab Emirates, and the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Al Hosani reaffirmed that The Defense and Security Fund will play a vital role in supporting the private sector to meet the strategic needs of the state – through bringing forward innovative solutions to meet the current and future challenges for the development of the defense and security sector. Al Hosani further stressed that the establishment of the Fund is part of the integrated development strategy of the UAE, and aims to enable income sources; enhance self-reliance; and encourage creativity and innovation.
Expressing his delight in the launch of the Fund, His Excellency Saif Mohammed Al Hajeri, Chairman of the Department of Economic Development, reaffirmed that the Fund is an invaluable addition that reaffirms the UAE and the capital’s strategy and vision towards enabling and developing non-oil economic sectors as well as supporting the national economy.
Al Hajeri added that the launch of a fund dedicated to the development of defense and security industries is aligned with the Accelerators Programme, “Ghadan 21”, by the Abu Dhabi Government. Al Hajeri stressed that the initiative is in line with the efforts of Abu Dhabi’s Government to develop partnerships between public and private sectors (PPP).
Abdullah Nasser Al Jaabari, Chief officer and Head of Defense and Security Development Fund, stated that the Fund will focus on three main areas including: strategic technology investments and intellectual property; strengthening innovation & industrial capabilities; and development of SMEs and local companies.
Al Jaabari confirmed that the Fund operates a two-pronged approach model, through investment and financing. He further stated that the Fund will launch specialized financing programs in the last quarter of the year, and will announce the financing terms for each program. Al Jaabari stressed that the Fund’s investments and financing initiatives will depend on the strategic significance of the project to defense and security, in addition to the project’s economic feasibility, and its developmental impact on individuals and the national economy of the country.
He confirmed that the Fund will offer the enterprises that benefit from its services a bundle of facilities which include loans at reduced interest rates as well as appealing long-term repayment plans.
Al Jaabari added: “We have ambitious strategic plans that meet the technical needs of strategic partners in the next five years, and have therefore started working on our pilot projects in 2018. At IDEX 2019, we will be announcing a few of our quality projects that aim to reaffirm the UAE’s position in intellectual property and franchises, especially in the technology sector.
Tawazun Economic Council (Tawazun) is an industry enabler responsible for the creation and development of a sustainable defense and security industry in the UAE. Tawazun serves as a catalyst for economic growth for the enhancement of the defense and security industry. By driving economic value, technology & innovation, ecosystem growth, and capabilities development, Tawazun empowers industry for a better tomorrow.