"We are going to close the deal in about a week's time," DAE chief
executive officer Bob Johnson said on July 23. "With these acquisitions, our
total investment will reach about $5.5 billion. Following the acquisition,
we will, of course, bring some of those industries to Dubai."
Under the proposed Auckland deal, DAE would obtain an
interest of up to 60 percent and become a strategic partner. DAI said
Auckland shareholders would receive up to $3.80 New Zealand per share.
"The directors of AIAL have unanimously recommended the proposed
transaction," DAE said. "This decision was reached in the absence of a
superior proposal."
For his part, Johnson said DAE has been acquiring Western technology
ahead of schedule. He said DAE has been negotiating for the procurement of
100 passenger jets for lease to regional airlines.
"In the recent months we have made great progress and made major
announcements on acquiring technologies," Johnson said. "We are ahead of our
schedule."
Meanwhile, Qatar has decided to develop a defense industry that
would generate indigenous capabilities in maintenance and production.
Qatar government sources said the emirate would institute regulations
that require foreign bidders for military contracts to guarantee
coproduction and technology transfer. The sources said Doha would invite
foreign militaries and companies to train a local work force in defense
technology.
"We don't simply want to buy weapons off the shelf," a government source
said. "That model is outdated and just reinforces a dependency. We want
every major military project to increase our technological base."
The sources said Qatar has been negotiating with several governments and
companies to launch the development of a defense industry in the emirate.
They said India has already agreed to establish military production and
maintenance facilities in Qatar as part of weapons deals.
"I believe Qatar wants to break the norm and open the region for new
arms suppliers outside the usual Western market that has been dominating the
area for a long time," Abdel Wahab Al Qassab, a strategic adviser at the
Qatar Armed Forces Strategic Studies Center, told the Washington-based
Defense News. "India is regarded by most Arab countries as a technologically
advanced country with a lot of potential."
Under the accord reached on June 22, India would supply Qatar with
technology, expertise, training and weaponry. India is a major supplier of
labor to the Gulf Cooperation Council state.
The sources said Qatar has been discussing similar arrangements with
Britain, France and the United States. They said an agreement could be
reached over the next few months.
Qatar has been impressed by the strides made by the neighboring United
Arab Emirates. The UAE has established two aerospace and defense centers in
Abu Dhabi and Dubai.
"We are really at the initial stage, but we could progress quickly
toward moving to defense production," the government source said.
