850 firms show wares at Gulf arms expo

ABU DHABI — Western contractors are arriving in the United Arab Emirates ready to battle a shrinking defense market.

About 850 Western and Asian contractors are exhibiting their weapons and defense systems at the International Defence Exhibition, or IDEX 2001, in a show that could set the tone for Gulf spending over the next two years. Britain has sent the largest number of companies to the exhibition, which begins on Sunday.

Still, defense analysts and executives are cautious. They said Gulf states such as the United Arab Emirates, Saudi Arabia and Kuwait have already made their big-ticket purchases.

These include a $6.4 billion contract for 80 F-16 fighter-jets from Lockheed Martin in the United States and a $3.2 billion purchase of 30 new Mirage 2000 jets from the French Dassault. Both planes were bought by the UAE.

Most of the members of the Gulf Cooperation Council will be looking for artillery, electronics and tanks rather than fighter-jets and warships. The exception, analysts said, is Oman, which plans to buy F-16s from the United States and helicopters from Britain.

The London-based International Institute for Strategic Studies reports that Gulf military spending has doubled from 1996 until last year. In 2000, annual defense spending hit $3.9 billion.