• A Chinese Hongdu JL-10 (L-15) supersonic advanced jet trainer and light combat aircraft releases coloured smoke while performing aerial manoeuvres during the 2021 Dubai Airshow. AFP
    A Chinese Hongdu JL-10 (L-15) supersonic advanced jet trainer and light combat aircraft releases coloured smoke while performing aerial manoeuvres during the 2021 Dubai Airshow. AFP
  • The L-15 designation applies to export versions of the jet, which is called the JL-10 in China. Reuters
    The L-15 designation applies to export versions of the jet, which is called the JL-10 in China. Reuters
  • The L-15 Falcon is described as a training and light attack aircraft. Reuters
    The L-15 Falcon is described as a training and light attack aircraft. Reuters
  • Zambia's air force uses the L-15 and Uruguay and Venezuela have reportedly expressed an interest in the aircraft. Reuters
    Zambia's air force uses the L-15 and Uruguay and Venezuela have reportedly expressed an interest in the aircraft. Reuters
  • No value of the deal was released but China sells the twin-seat L-15 Falcon for $10 million to $15 million per unit. AFP
    No value of the deal was released but China sells the twin-seat L-15 Falcon for $10 million to $15 million per unit. AFP
  • The Hongdu JL-10 supersonic advanced jet trainer and light combat aircraft releases coloured smoke during the 2021 Dubai Airshow. AFP
    The Hongdu JL-10 supersonic advanced jet trainer and light combat aircraft releases coloured smoke during the 2021 Dubai Airshow. AFP

UAE

Government

UAE's Ministry of Defence to buy L-15 Falcon jets from China

Contract will include option to buy a further 36 aircraft

Rory Reynolds
Rory Reynolds

February 23, 2022

  • English
  • Arabic

The Ministry of Defence plans to sign a contract to buy 12 military fighter jets from China, with the option to purchase 36 more at a later date.

In a major deal, the ministry confirmed it was in talks to secure the L-15 Falcon - described as a training and light attack aircraft - from China National Aero-Technology Import & Export Corporation (CATIC).

Tareq Al Hosani, chief executive of Tawazun Economic Council, said the deal is part of continuing efforts to diversify and modernise capabilities of the Air Force and units of the armed forces.

“We have reached the final stage in our talks with the Chinese side. The final contract will be signed soon,” he said in a statement.

“We trust that CATIC has advanced technology that enjoys global competitive advantages.”

No value of the deal was released but China sells the twin-seat L-15 Falcon for $10 million to $15 million per unit, industry reports said.

That would make the jet, which debuted at the Dubai Airshow in 2021, significantly cheaper than many fighters produced by the United States or Europe. One industry journal said the aircraft is regarded as versatile and "best in its class".

The MoD and Tawazun statement did not state which version of the L-15 it was looking to acquire.

First introduced in 2006, a more recent version called the L-15B has a weapons payload of four tonnes, with the instructor's rear seat turned into a weapons systems officer's seat to manage guided weapons.

The L-15 designation applies to export versions of the jet, which is called the Hongdu JL-10 in China.

Zambia's air force uses the L-15 and Uruguay and Venezuela have reportedly expressed an interest in the aircraft.

Tawazun, which manages the acquisitions and contracts of the UAE Armed Forces and Abu Dhabi Police, will work with strategic partners to develop the UAE’s defence capabilities, news agency Wam reported.

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

Saudi National Day
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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.”

Updated: February 23, 2022, 4:44 PM
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