French defence and technology group Thales plans to produce radar antennas in the UAE this year for domestic sales and export to global markets, as the UAE seeks more local manufacturing contracts and technical know-how transfers in its deals with international defence suppliers.
The company's wholly-owned unit Thales Emarat Technologies aims to double its workforce this year to 340 people, with 30 per cent of the new hires to be Emiratis, Pascale Sourisse, senior executive vice-president of international development at Thales, told The National in an interview on the sidelines of Idex 2025 in Abu Dhabi. That is up from the current Emiratisation rate of 20 per cent. Thales is also working with local universities to source Emirati talent, mainly engineers, for high-tech jobs.
The radar factory project, first announced in 2021, is “targeted towards the needs of the UAE but also to make sure that this radar competence centre will be included in Thales' global network of competence centres and it will produce radar antennas that we plan to definitely also sell to non-UAE customers”, Ms Sourisse said.
“We are not limiting the market potential only to the region. Thales markets radars all over the world and this UAE competence centre will be used in the Thales global supply chain … our hope is to start producing elements in the year to come and start having the capacity to contribute to some programmes.”
The company plans to capitalise on the UAE's strategic position as an export hub to its customers around the world so that it can maintain “sustainable and competitive” operations and guarantee continuing work loads that will not be impacted by the length of its programmes in the UAE, Ms Sourisse said.
Building 'in-country value'
The move comes as the UAE pushes to develop its own military production capabilities to reduce reliance on foreign suppliers. The strategy is intended to diversify its economy from the oil sector, create more jobs for its citizens, attract highly-skilled workers and become part of the global industrial supply chains.
“It's essential to build capabilities in-country and to give the UAE the possibility to really master the systems that they are going to use in the future, so we are constantly interacting with the UAE Armed Forces and authorities to support them in this direction and working a lot on the questions of sovereignty and localising competencies in-country,” Ms Sourisse said.
Europe's largest defence technology company specialises in aerospace, satellites, cyber security and digital security. Thales Emarat Technologies works in three main areas of radar technology, digital services such as radio communications and defence.
“We plan to grow all these activities and we are actually quite optimistic and positive on the discussions we've had with the Ministry of Defence and Armed Forces that they are counting on us to grow the competencies and capabilities here in the UAE in all these three spheres,” Ms Sourisse said. "Each time they acquire a solution, they want Thales to commit to not only local production, but also to rely on local teams to service and maintain the installed base."
AI and defence systems
The company sees a “great opportunity” to strengthen its activities in the UAE with artificial intelligence-embedded defence equipment and training Emiratis for its use, Ms Sourisse said.
“AI will be using data that is coming from our military users and this data is very sensitive and sometimes, it is classified. It therefore makes sense to ensure that the work in AI can be performed by Emirati citizens,” she said.
“We are definitely planning on developing competencies in AI to be embedded in the systems we supply to the UAE and to have competencies in the UAE.”
Since AI must be trained based on data from the users and since the UAE is emphasising creation of jobs for citizens, Thales is seeking to hire and train Emirati engineers for such jobs, she said.
Thales has more than 600 experts globally working on AI in mission-critical systems and expects that number to grow “tremendously” in the future, she said.
Thales, which says it is among the top five globally for cyber security, identified the intensification of geopolitical conflicts, the implementation of AI and growing digital reliance as the main challenges this year facing sectors such as energy, finance and transport, in its January report on cyber security.
“We are offering mission-critical systems to our customers, so they need to be cyber secure … our systems embed more and more AI. And AI is not only a question for the future, we area already working on it … we are developing AI solutions for critical missions, so security and lives are at stake,” Ms Sourisse said. “This kind of AI needs to be trustable and transparent.”
AI is embedded in more than 100 of Thales' products, such as radars and the reconnaissance pods below an aircraft, she added. Use of AI in defence systems raises two risks including the threat of hacking and therefore must be cyber-secured, and it must also be certified for safety as lives are at stake, she said.
Rising European defence spending
Political tension in Europe, arising from Russia-Ukraine war and Washington's push for European countries to spend more on protecting themselves is set to boost growth for defence manufacturers, according to some companies such as Swedish conglomerate Saab.
Thales is tracking a similar trend and plans to increase its spending on new products in response to growing market requirements.
“Yes, we are expecting a higher level of demand from a number of customers, certainly in Europe, but our defence markets are growing pretty much everywhere in the world and we plan to see additional investments in developing new solutions,” Ms Sourisse said.
Thales is spending 20 per cent of its annual revenue on research and development (R&D), she said. With annual sales revenue of €20 billion ($20.9 billion), this translates into €4 billion of investment into R&D.
“We see that growing in the future, we plan to reach about €5 billion on investment in R&D by 2028 globally,” she said.
Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
MATCH INFO
Champions League quarter-final, first leg
Ajax v Juventus, Wednesday, 11pm (UAE)
Match on BeIN Sports
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
The specs
Engine: 1.5-litre, 4-cylinder turbo
Transmission: CVT
Power: 170bhp
Torque: 220Nm
Price: Dh98,900
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
The Year Earth Changed
Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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Messi at the Copa America
2007 – lost 3-0 to Brazil in the final
2011 – lost to Uruguay on penalties in the quarter-finals
2015 – lost to Chile on penalties in the final
2016 – lost to Chile on penalties in the final
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Result
Arsenal 4
Monreal (51'), Ramsey (82'), Lacazette 85', 89')
West Ham United 1
Arnautovic (64')
