Abu Dhabi's Offset Program, designed to cultivate economic benefits alongside defense procurement, has demonstrably achieved its goals. Matar Ali Al Romaithi, Chief Officer of the Offset Program Bureau (OPB), announced the program's success in attracting 50 projects valued at a combined AED 6 billion (roughly USD 1.63 billion). The announcement came during the 2011 Abu Dhabi International Offset Conference (ADIOC).
Established in 1992, the Offset Program mandates that foreign defense contractors invest a portion of their contract value back into the UAE's economy. This investment can take various forms, including joint ventures, commercial and industrial projects, educational initiatives, and the creation of investment funds. The OPB acts as a facilitator, connecting international contractors with UAE-based private entities for mutually beneficial partnerships.
Al Romaithi highlighted the program's ongoing appeal, stating that the OPB was reviewing feasibility studies for an additional 10 potential projects in Abu Dhabi submitted by leading global arms manufacturers. He also noted discussions with 16 new companies interested in participating in the Offset Program upon securing defense equipment contracts with the UAE.
The program's achievements extend beyond headline figures. By fostering joint ventures and technology transfer, the Offset Program has demonstrably contributed to the diversification of Abu Dhabi's economy and the development of its industrial base. The initiative has also played a role in creating high-skilled jobs for Emirati nationals.
The ADIOC conference served as a platform to showcase the Offset Program's achievements and its potential for future growth. Industry leaders and government officials convened to discuss best practices, explore emerging trends in defense procurement, and forge new partnerships that would contribute to the UAE's economic and technological development.
The success of Abu Dhabi's Offset Program underscores the potential of such initiatives to achieve a strategic balance between national security and economic prosperity. By leveraging defense procurement to cultivate long-term economic benefits, the UAE has established a model that other nations seeking to achieve similar goals can emulate.