The United Arab Emirates indigenous defence production industry is creating its market niche in the competitive markets of the Gulf Cooperation Council. Burkan Munitions Systems, one of largest arms manufacturers, is contributing to achieve the regional strategic security balance, marinating self-reliance and above all earning foreign exchange through it sale deals. Recently for its further expansion and development the manufacturers secured a Dh1 billion loan. It is hoped that it will boost its arms manufacturing capacity significantly.
(a) Health, safety and protection of work force during the manufacturing process
(b) Better knowledge of risk management and human resource management
(c) Continuous training and refreshing courses
(d) It will also provide training facility to UAE nationals in areas of advanced technology such as research and development, chemical and mechanical engineering and marketing, in addition to administration and finance
(e) It contributes to supporting the country’s economy through the export of technology and products to foreign markets
(f) Diversification of products
(g) More focus on research and development
(h) Better knowledge of risk management and HRM.
Uniqueness of the Burkan Munitions Systems
It is established fact that the plant of the Burkan Munitions Systems is the first of its kind in the UAE and the Gulf region, is able to produce, test and assemble various types of ammunition, including aircraft bombs, rockets and ammunition for artillery, infantry and naval forces. It has been able to set aside an environmentally safe area to dispose of all waste from explosives and ammunition, using the latest techniques. It places the company at the apex of all the domestic and regional companies that exercise best practices in the armament industry using the best technology that ensures reduction of waste as well as making it environmentally friendly.
The emerging geo-political and geo-strategic trends in the GCC are compelling the purchase of more advanced weapons and arms for which they have already increased their defence budgets up to $68 billion (Dh250 billion) in 2011 due to which the Burkan Munitions Systems has great opportunity to expand further in the GCC.
The phenomenal increase in the regional defence spending is expected to grow to about $80 billion [Dh300 billion] by 2015. It is estimated that the overall defence spending in the Middle East will cross $100 billion by 2015.
The Burkan Munitions Systems has succeeded in meeting the needs of the UAE’s armed forces by supplying various types of ammunition and by maintaining and recycling used munitions. It will be able to supply orders within agreed deadlines. He is hopeful that his company owns the first medium and heavy-duty ammunition manufacturing facility in the UAE, is seeking to meet and supply the needs of the national armed forces as well as the GCC countries. Acquiring of modern technology to develop and introduce new types of machines according to the needs of customers will be the first and foremost objectives of the company.
Saeed Bin Khadim Al Mansouri General Manager and CEO the company said GCC states are his future market. The company has certain plans for its speedy qualitative and quantitative munitions production. It has unique entrepreneurship capabilities and sound physical assets that will secure necessary funds on more commercial terms, rather than seek shareholder support going forward.
The company has its development plan which consists of the establishment of research laboratories and the testing and commissioning of new products to ensure quality and to match the required specifications for all types of munitions. It will be carried forward in cooperation with specialised international companies.
The Burkan Munitions Systems is the strategic partner of the UAE armed forces fulfilling larger proportion of its needs. However, the GCC states are the company’s future market.
Burkan Munitions Systems is a joint venture between the Tawazun Holding Corporation and Al Jaber Trading and Rinmital AVI Munitions of Germany. Its management is committed to continuing its research and development integrated efforts to keep pace with modern technologies in the munitions industry. It may cover a larger spectrum research, design and development between users and meets the requirements of effective risk management.
Assessments of the Tawazun Holding
Tawazun Holding announced that this large project by Burkan Munitions systems has been able to achieve its objectives successfully by implementing the vision of the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan, and the directions of Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces. It succeeds to establish a national arms industry to provide the requirements of UAE armed forces instead of relying on foreign imports.
The project also confirms Abu Dhabi 2030 vision. It is decided to develop and modernization drive will be done with the help and collaboration of the best international companies. It will contribute positively in the UAE macro-economy and fulfill the all the needs of its armed forces. It will support the development drive of the national economy and provide more job opportunities for citizens to implement the Plan of Abu Dhabi 2030. Tawazun Holding partner with the Burkan Munitions Systems announced that products are currently targeted for the domestic market and will move on during the next stage to provide the requirements of the Gulf and regional markets, as products are highly accurate and efficient with best international standards.
UAE security expenditures
UAE spending on Homeland Security is set to double from $5.5 billion to $10 billion in the next 10 years. Homeland security, biometric technology, perimeter security and access control are expected to be amongst the key areas of interest at Intersec trade fair and conference 2011, the trade and networking event for commercial security, homeland security and policing, safety and health, fire and rescue and aviation security in the wider region would be beneficial for the Burkan Munitions systems to sell its products and secure lucrative deals in the GCC.
The market for homeland security, surveillance systems and policing gear and equipment in the region is on a strong growth path which would be useful for Burkan Munitions Systems. Moreover, biometric security, IT and infrastructure security and border and perimeter protection demand is on the rise which definitely increase the company chances to sell its products.
The state-of-the-art Al Burkan Munitions Factory is built on a dedicated area at the Zayed Military City in Abu Dhabi. The factory uses technology and proven components of world class suppliers in manufacturing, loading, testing, and assembling of various types of ordnance, such as aircraft bombs, artillery, and naval rounds and small arms ammunitions. It also encompasses an integrated demilitarization plant for environment-friendly explosive and ammunitions disposal, using the latest technology of thermal disposal. It also offers ammunitions refurbishment, R&D, and training services. The project provides reliable, sustainable and environment-friendly solutions in ammunitions manufacturing and safe disposal, not only to the UAE, but also to the region at large.