Tawazun Holding is launching two new companies – Advanced Pyrotechnics and Al Hosn Armored Systems – as the Abu Dhabi defence company boosts its emergency, crisis and disaster management offerings.
Tawazun will unveil the subsidiaries at the International Exhibition for Security and National Resilience that starts today in the capital.
Advanced Pyrotechnics specialises in the design and manufacture of non-lethal ammunition for the armed forces, while Al Hosn Armored Systems makes bulletproof vests and other protective gear, according to the company’s website.
Tawazun was set up in 2007 to develop ventures focused on defence, aerospace, automotive and munitions, in line with Abu Dhabi’s 2030 vision to diversify its economy away from its dependence on oil.
Mubadala, Tawazun Holding and Emirates Advanced Investment Group in 2014 merged some of their assets under Emirates Defence Industries Company, or Edic, which incorporates 16 defence industry entities.
Defence spending worldwide is forecast to remain fairly resilient amid slowing economic growth in emerging markets and is forecast globally to increase to US$1.68 trillion in 2016 from $1.65tn last year, according to IHS Jane, the research and analysis firm.
Middle East defence spending is expected to be flat at $170 billion over the next two years as Eastern Europe overtakes it as the region with the fastest growing defence budgets, with double-digit increases in response to the Ukraine crisis.
Other economies in the region are also trying to hastily catch up with their diversification plans, especially after seeing the oil price crash over the past months.
Saudi Arabia, for example, is set to reveal details of its new diversification plans amid measures to cut costs and for economic reform.
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