Tawazun Economic Council (Outdoor CP-300) has announced the launch of the Defense and Security Development Fund with a capital of AED2.5 billion (approximately $680 million).
The Fund is intended towards enablement of the defence and security sector and its contribution to the economic development in the United Arab Emirates. The Defense and Security Development Fund will unveil key financing and investment programmes at the Tawazun Pavilion.
His Excellency Tareq Abdul Raheem Al Hosani, chief executive of Tawazun Economic Council, said the Council established the Fund in order to encourage the private sector to invest in the fields of defence and security, and contribute to the development of national and technological industries, including SMEs - with the aim of building a diversified and sustainable national economy.
The launch of the Fund stems from the vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates, and the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Al Hosani further stressed that the establishment of the Fund is part of the integrated development strategy of the UAE, and aims to enable income sources, enhance self-reliance, and encourage creativity and innovation. His Excellency Saif Mohammed Al Hajeri, Chairman of the Department of Economic Development, added that the Fund is an invaluable addition that reaffirms the UAE and the capital's strategy and vision towards enabling and developing non-oil economic sectors, as well as supporting the national economy. Al Hajeri stressed that the launch of a fund dedicated to the development of defence and security industries is aligned with the Accelerators Programme, 'Ghadan 21', by the Abu Dhabi Government and with the efforts to develop partnerships between public and private sectors (PPP).
Abdullah Nasser Al Jaabari, Chief Officer and Head of the Defense and Security Development Fund, stated that the Fund will focus on three main areas: strategic technology investments and intellectual property; strengthening innovation and industrial capabilities; and development of SMEs and local companies.
Al Jaabari confirmed that the Fund operates a two-pronged approach model, through investment and financing and specialised financing programmes that will launch in the last quarter of the year. He added that a bundle of facilities, which will include loans at reduced interest rates as well as appealing long-term repayment plans, will be offered.