The UAE has made it a condition that foreign firms bidding for lucrative defense contracts should invest a portion of the value of the deals in joint venture projects with local partners.

The UAE Offsets Group (UOG), which manages this offset program, has developed its role to become a pioneering institution playing a vital part in the establishment of joint ventures .

Under the offsets program, foreign defense firms are entitled to hold up to a 49 percent stake in the joint ventures with the rest being held by local private investors. Projects must generate added value to the UAE within a period of seven years.

Since 1992 the offsets program has announced 31 projects, 17 of which are in operation, with a total investment of around Dh 2 billion. The projects range from a ship-building company to a health care center. Abu Dhabi Shipbuilding Company, a Dh 178 million venture, was one of the first public shareholding firms to be set up under the scheme.

To view up to date concluded projects, click here