IDEX 2015

EDIC – a new platform for growth [IDX15VP]

22 February 2015

Announced on 2 December last year, and commencing operations in its first phase last month, the Emirates Defence Industries Company (EDIC) brings together elements of the UAE defence industry to harmonise their activities and maximise their potential, as well as to provide a springboard for future growth. Here, the Chairman of EDIC, H.E. Homaid Al Shemmari, outlines the reasoning behind the creation of EDIC, and its vision.

The UAE’s defence industry today stands at an inflection point in its evolution into a world-class partner capable of keeping the Armed Forces at a peak state of readiness.

Over the past 20 years, a number of defence service and manufacturing companies have grown up under the banner of several different national holding companies. Mubadala, Tawazun and Emirates Advanced Investments all made substantial investments in developing capabilities across manufacturing, maintenance, repair and overhaul, training, mapping, logistics and technology development.

On National Day last year, we announced the creation of the Emirates Defence Industries Company (EDIC), to bring these capabilities together under a single integrated platform. EDIC was established with 11 assets in the first phase, which began in January, and at this year’s International Defence Exhibition and Conference, we are announcing a second phase of five companies to be brought under the EDIC banner.

The integration will not only enhance the strategic alignment of our defence services sector, but creates opportunities to unlock synergies and improve performance.

EDIC provides a platform for further growth, and our vision is to become a new national champion for innovation and technology development, opening career opportunities for the next generation of Emirati engineers.

What are we working to achieve? For the industry, EDIC will ensure our companies are coordinated and aligned, benefiting from economies of scale and delivering maximum value to our shareholders and partners. For our clients, it provides a centralised view on a unique range of assets and capabilities in the region. It will help our industry compete in the regional marketplace, where customers increasingly demand greater technical excellence and performance.

For our nation, EDIC will be better positioned to meet the needs of the Armed Forces while creating jobs for UAE Nationals.

EDIC was created because it makes clear business sense today.

For example, Al-Taif Technical Services, one of the first companies to be integrated into EDIC, already provides maintenance, repair and overhaul services to NIMR Automotive, the multipurpose vehicle manufacturer that is also among the first phase EDIC companies.

AMMROC, our flagship aircraft maintenance, repair and overhaul company that joins EDIC in the second phase, is a natural partner for Global Aerospace Logistics (GAL), a first-phase EDIC company, to offer a service proposition through the full value chain. GAL specialises in first line, light maintenance of military aviation, while AMMROC offers second line, deep level maintenance, repair and overhaul services.

EDIC was also created because it builds a platform for future growth.

International partnerships are a critical part of our success, and EDIC companies already work in close collaboration with several leading global defence companies. We believe EDIC will give our partners an ideal platform to grow the business in the UAE and across the region.

Not only does EDIC provide a vital and valuable service to the nation’s defences, but its companies will open career opportunities to the next generation of Emirati engineers.

AMMROC, for example, has trained hundreds of Emirati students to become high-tech aircraft maintenance engineers. Once they graduate, these talented Emiratis will be working to maintain and repair aircraft from Piaggio Aerospace, the Italian manufacturer majority-owned by Mubadala.

As the Armed Forces of the UAE and our allies in the region prepare to face the security challenges of the future, they require an integrated, world-class manufacturing and services partner to help them stay at a peak state of readiness. Now they have that partner, right here in Abu Dhabi.

(640 words)