The Defence and Security Development Fund of Tawazun Economic Council has signed a funding agreement worth AED193 million ($52.5 million) with Halcon Systems, a defence technology company owned by the Abu Dhabi-based Yas Holding Group.
The first phase of the agreement is to set up production lines and further expand Halcon’s existing capabilities to cater for local and international market demands, a statement said.
It added that the parties are also discussing a direct investment into the development and manufacture of the P4 guided missile kit.
The agreement was signed during IDEX 2019 by Abdulla Al Huwar, strategic technology investments director at Defence and Security Development Fund, and Saeed Al Mansoori, CEO of Halcon Systems.
Tareq Al Hosani, chief executive of Tawazun Economic Council, said: "The Tawazun Economic Council is keen to support local strategic technology investments to meet the needs of the country and contribute in finding innovative solutions through investing in the development of new and advanced technologies, or through the acquisition and development of companies."
Saeed Al Mansoori, CEO of Halcon Systems, said that the collaboration with the Defence and Security Development Fund will contribute to boosting Halcon’s manufacturing competences, technical efficiency and aptitude to develop advanced technology wholly owned by the company.
"We look forward to the fund’s support to help us upgrade our existing production lines, especially in the manufacture of the Desert Sting series," he said, adding that he expected the development and manufacture of a smart missile control and guidance panel will be delivered over the next three years.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.