UAE ready to buy combat aircraft from Brazil


Kareem Shaheen
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DUBAI // The UAE and Brazil are crafting a wide-ranging defence cooperation pact that could see the Emirates purchase transport and light combat aircraft from the South American country. Within two weeks, Brazil will present an agreement to the UAE as a precursor for "an umbrella agreement between our two countries on cooperation in the military field", Nelson Jobim, Brazil's defence minister, told reporters yesterday.

"We put on the table all possibilities of cooperation from the UAE side and from the Brazilian side. Those are very frank and transparent conversations," he said. The deal centres on the sale of the light Super Tucano turboprop aircraft and contributions to the development of the KC-390 transport aircraft, as well as training programmes for Emirati and Brazilian officers. Once the UAE revises the agreement, the Emiratis and Brazilians will collaborate on its specifics. Mr Jobim said he hoped the deal could be signed within two months of a draft.

Brazil is a major weapons importer. It topped the list of developing nations in arms-transfer agreements, signing deals worth US$7.2 billion (Dh26.4bn) last year, according to a recent report for the US Congress. The deal with the UAE would represent the first significant foray for Brazil into the Gulf since the 1980s, when its defence industry suffered a major setback at the end of the Iran-Iraq War. Brazil was a major arms supplier to Saddam Hussein's regime at the time.

A centrepiece of the deal is the KC-390, a transport plane made by the Brazilian manufacturer Embraer that can carry 21 tonnes of cargo. Its first two prototypes will be ready in 2014 or 2015, and it will be available on the market by 2018. Brazil hopes to fill the void that will be left by the 50-year-old C-130 Hercules transport plane. Mr Jobim estimates that 1,500 of the US-made C-130s will need to be retired between 2018 and 2020.

A main part of any potential agreement would include inviting UAE companies to set up joint projects or ventures with Brazilian defence contractors as a way of "creating national capability in the defence industry", Mr Jobim said. "The UAE authorities have shown an interest in participating in designing and programming of the KC-390," Mr Jobim said. Dr Mustafa Alani, a security expert at the Gulf Research Centre in Dubai, said the UAE could use transport aircraft in its expanding array of humanitarian missions.

UAE forces are increasingly mobile and participate in peacekeeping, so they need versatile transport planes, Dr Alani said. He said the trend in defence contracting now involves having a "local dimension", which is why joint ventures are an important component of any deal. The UAE has also shown interest in the Super Tucano, a light Brazilian combat aircraft. Mr Jobim said the plane would be ideal for counter-insurgency operations as well as maintaining border security and combating drug trafficking.

Mr Jobim said details of how many aircraft the UAE could acquire or the monetary value of such a deal had not been worked out yet, and a decision on orders could only be made after the joint taskforces were held. The planes "will need to abide by the specs and requirements of the UAE airforce", he said. kshaheen@thenational.ae

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How Voiss turns words to speech

The device has a screen reader or software that monitors what happens on the screen

The screen reader sends the text to the speech synthesiser

This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen

A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB

The speech synthesisers VOISS develops are free

Subsequent computer versions will include improvements such as wireless keyboards

Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser

Partnerships planned during Expo 2020 Dubai to add more languages

At least 2.2 billion people globally have a vision impairment or blindness

More than 90 per cent live in developing countries

The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device

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.”

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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

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

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