UAE’s Burkan Munitions Gets $272m Loan

Reuters06.01.2011 Joint Ventures
UAE’s Burkan Munitions Gets $272m Loan

UAE’s Burkan Munitions Gets $272m Loan

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Abu Dhabi's Burkan Munitions Systems said it has received a Dh1 billion ($272 million) credit facility to expand its production lines and upgrade its ammunition testing lab.

The ammunitions manufacturer is a joint venture founded in 2008 between Tawazun Holding, an investment company established by the Offset Program Bureau, Abu Dhabi's Al-Jaber Group and Germany's Rheinmetall Waffe Munition.
The facility was arranged in November by First Gulf Bank, said a statement from Burkan Munitions, which supplies the UAE's Armed Forces with ammunitions for 'multiple uses.'
Saif Mohammed al-Hajri, Tawazun's Chief Executive, said the company was planning to export ammunitions ranging from bullets to tank shells and bombs used by warplanes to neighboring Gulf states and other countries in the region.
The UAE is developing an indigenous defense industry to supply its armed forces, involved an aggressive modernization plan that mostly include its naval and air forces.
The UAE made arms deals worth $14.2 billion between 2006 and 2009, according to a US Congress released last year. The country is also expected to spend as much as $17 billion in coming years to buy an advanced missile defense system and fighter planes.
Abu Dhabi will host in February the two-yearly International Defense Exhibition and Conference (IDEX) during which major deals are expected to be announced.

 

Source: Reuters

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