financing for SMEs

in defense industry as part of Make it in Emirates

UAE-based SMEs in the industrial sector will soon benefit from new financing solutions and incentives following a memorandum of understanding signed at IDEX and NAVDEX 2023. The Ministry of Industry and Advanced Technology, Tawazun Industrial Park, and the Emirates Development Bank signed the MoU on the sidelines of the defence exhibition to attract industrial investors to strategic sectors by providing a package of incentives and benefits. The initiative aims to support the sustainable development of the industrial sector, provide an attractive business environment for local and international investors, and encourage the use of advanced technologies in industrial solutions.

The MoU was signed by key officials, including HE Omar Al Suwaidi, Undersecretary, Ministry of Industry and Advanced Technology and Faiz Saleh Al Nahdi, CEO, Tawazun Industrial Park. The Emirates Development Bank will provide flexible and competitive financing solutions, such as green financing, financing capital expenditure, and financing start-ups and SMEs. This will help support the UAE’s domestic defence expenditure, which is set to increase from 10% to 30% of its total defence expenditure by 2030.

The defence sector is a priority industry for MoIAT, which aims to increase the contribution of the industrial sector to GDP to AED 300 Billion by 2031, raise productivity, and create more job opportunities for Emiratis. The MoU is in line with the Make it in the Emirates initiative, which seeks to provide a supportive business environment and attract industrial investors to strategic sectors.

Digital healthcare provider Alma Health expands to Riyadh, and Jeddah, Dammam in future

Alma Health, a fully integrated digital healthcare provider aimed at improving the lives of individuals suffering from chronic conditions like diabetes, hypertension, and high cholesterol, has announced its official launch in Riyadh. The company plans to expand to Jeddah and Dammam soon.

Founded by Khaldoon Bushnaq and Tariq Seksek in May 2021, Alma Health offers doctors’ consultations via its mobile application with licensed, in-house, and experienced physicians. Patients can obtain prescriptions on a renewal basis and receive same-day medication delivery at no additional cost. Alma Health also provides convenient lab tests that can be done in the comfort of a patient’s home. Patients can also benefit from a second opinion on their chronic condition, as well as a customised management plan to improve clinical outcomes.

Alma Health has already made a significant impact in the UAE, with over 20,000 consultations completed through its digital clinic and 50,000 orders fulfilled through its cloud pharmacies. The launch of Alma Health in Saudi Arabia is a significant milestone in the company’s mission to make healthcare more accessible and affordable for people with chronic conditions worldwide. With its innovative technology and dedicated team, Alma Health is well-positioned to deliver on its promise of helping chronic patients lead healthier and happier lives.

Saudi carriers intend to purchase 120+ 787 Dreamliners creating fifth largest commercial order

Boeing and Saudi Arabian Airlines, SAUDIA have announced that the national flag carrier will be expanding its long-haul fleet with the purchase of 787 Dreamliner aircraft. The national flag carrier will be acquiring 39 Dreamliners with an option to purchase additional 10 options. SAUDIA will utilise Dreamliner’s outstanding efficiency, range, and flexibility to sustainably grow its global operation. The agreement will include both 7879 and 787-10 models.

This decision is part of Saudi Arabia’s wider strategic plan to transform the country into a global aviation hub. In total, Saudi Arabian carriers have announced their intent to purchase up to 121 787 Dreamliners. This will be the fifth-largest commercial order by value in Boeing’s history. The purchase supports Saudi Arabia’s goal of serving 330 million passengers and attracting 100 million visitors annually by 2030. Currently, SAUDIA operates over 50 Boeing aeroplanes on its long-haul network, including the 777-300ER or Extended Range and 787-9 and 787-10 Dreamliner. The additional 787s will complement SAUDIA’s existing fleet, allowing the airline to effectively harness the value of the 777 and 787 families. Since revenue service began in 2011, the 787-family has launched more than 350 new nonstop routes around the world, including approximately 50 new routes since 2020.

The Dreamliner reduces fuel consumption and emissions by 25% compared to the aeroplanes it replaces.

UAE’s EDGE acquires majority stake in Estoniabased Milrem Robotics for autonomous systems

UAE-based Edge Group has announced its acquisition of a controlling stake in Milrem Robotics, a leading European developer of autonomous systems and robotics, based in Estonia. The deal represents the largest foreign investment in Estonia’s growing defence industry. As part of the transaction, Milrem Robotics will become a new subsidiary of Edge Group, which will expand the group’s existing multi-domain capabilities.

Established in 2013, Milrem Robotics specialises in providing innovative robotic solutions for challenging environments. Its main products include unmanned ground vehicles or UGVs, such as the THeMIS and Multiscope, which support dismounted soldiers and for commercial purposes such as forestry and firefighting, respectively. The Type-X is an unmanned combat vehicle designed to act as a wingman for mechanised defence units.

Milrem Robotics will continue to be headquartered in Tallinn, Estonia, and employs around 200 skilled personnel. The company has offices in Finland, Sweden, the Netherlands, and the United States. Following the acquisition, Edge will hold a controlling stake in Milrem Robotics. Other shareholders include Krauss Maffei-Wegmann, company founder and CEO Kuldar Väärsi, and Estonian private investors, among them company employees as minority shareholders.

Milrem Robotics’ products have been sold to 16 countries, eight of which are NATO members, including Estonia, France, Germany, Norway, Spain, the Netherlands, the United Kingdom, and the United States. Edge’s acquisition of the majority stake in Milrem Robotics signals the valuable opportunities that exist for international investors in Estonia’s advanced technology and defence sectors.

EDGE entity, AL TARIQ, signs MoU with Bharat Dynamics to jointly produce precision-guided munition

Al Tariq, a subsidiary of the Edge Group, has signed a Memorandum of Understanding with Bharat Dynamics, BDL during Aero India 2023, which is Asia’s largest aerospace exhibition held in Bengaluru. BDL is known for designing, developing, and manufacturing missiles and underwater weapons, while Al Tariq specialises in developing and producing highly modular long-range precisionguided munitions.

The MoU is in line with the event’s theme, The Runway to a Billion Opportunities, which highlights local partnerships and investments in India. Al Tariq and BDL will work together to produce a range of all-weather, daynight, long-range precision-guided munition kits for the Indian Air Force.

The MoU demonstrates the intent and willingness of both Al Tariq and Bharat Dynamics to collaborate and identify opportunities to jointly produce the LR-PGM in India, meeting the Indian Air Force’s requirements while fulfilling the government’s Make in India mandate.

Under the MoU, BDL’s state-of-the-art facilities will develop and produce Indian variants of Al Tariq’s LR-PGMs. The partnership will enable BDL to add to its kitty modular, advanced long-range capability to its precision-guided munition offerings.

UAE’s AL TARIQ signs MoU with India based HAL for integration of precision-guided munitions

Al Tariq, a company under Edge Group that produces highly modular, long-range precision-guided munitions, has signed a Memorandum of Understanding with Hindustan Aeronautics Limited, HAL during Aero India 2023, Asia’s largest aerospace exhibition, held at the Yelahanka Air Base in Bengaluru. HAL is a leader in the design, development, manufacturing, supply, and maintenance of aircraft, helicopters, engines, aerospace equipment, avionics, and related accessories for military and civil markets.

Under the MoU, Al Tariq will explore the possibility of integrating its line of LR-PGMs onto HAL platforms for enhanced mission flexibility. The two companies will work together to explore the integration of Al Tariq’s family of modular, long-range, all-weather, day-night precision munitions onto HAL’s fixed-wing aircraft. Al Tariq also plans to offer customers LR-PGM that provides long stand-off ranges and increased safety. It also plans to offer a unique, modular LR-PGM solution that will expand and enhance the aerial strike capability of the end user.

HAL believes that Al Tariq’s high-precision, longrange, focused munition integration will improve the lethality of its fighter aircraft. HAL’s Aircraft Research & Design Centre, along with other stakeholders, will explore the possibilities of integrating Al Tariq’s LRPGM solution into fixed-wing aircraft of Indian origin.

New Saudi Arabian carrier Riyadh Air selects Boeing fleet of up to 70+ 787-9 Dreamliners

Boeing and Riyadh Air have announced that the new Saudi Arabian carrier has selected the 787 Dreamliner to power its global launch and support its goal of operating one of the most efficient and sustainable fleets worldwide. Riyadh Air, owned by Saudi Arabia’s Public Investment Fund, plans to buy 39 highly efficient 787-9s with options for an additional thirty-three 787-9s. The airline, based in the capital city, will play a crucial role in growing Saudi Arabia’s air transport network.

This decision is part of Saudi Arabia’s wider strategic plan to transform the country into a global aviation hub. Saudi Arabian carriers have announced their intention to purchase up to 121 787 Dreamliners, which will be the fifth-largest commercial order by value in Boeing’s history. This purchase supports Saudi Arabia’s goal of serving 330 million passengers and attracting 100 million visitors annually by 2030.

The 787-9 offers the longest range of the 787 Dreamliner family of aeroplanes, flying about 300 passengers 7,565 nautical miles, nearly 14,010 km with additional cargo capacity.

Passengers can enjoy a better experience with the largest windows of any jet, air that is more humid and pressurised at a lower cabin altitude for greater comfort, large overhead bins with enough room for everyone’s bags, soothing LED lighting, and technology that senses and counters turbulence for a smoother ride.

Investcorp distributes $1.2 billion to GCC investors from private equity exits in United States

Investcorp, a global firm offering alternative investment opportunities, has announced that it has distributed $1.2 Billion to its investors based in the GCC over the last year. These value realisations have been made across a range of asset classes, and include the recent exits from Investcorp’s private equity platform in the United States.

These investment realisations reflect the company’s private equity strategy of investing in mid-market business services companies that demonstrate long-term growth drivers, high cash flow generation, and minimal capital intensity, targeting industries that have proven their resilience throughout economic cycles. The company chooses businesses that are well-placed to outperform their peers and adapt to changing market conditions, while also demonstrating innovation and leading their sectors. Investcorp has identified such businesses based on their growth potential since it launched its growth strategy in 2015. This approach has led to great returns for investors, as the company continues to drive value even during challenging periods in the market cycle. Since it was established in 1982, Investcorp has completed over 70 private equity transactions in North America, deploying over $22 Billion in transaction value. The company’s North American investments across all asset classes make up $21 Billion of its overall $50 Billion AUM.

Hassan Allam Utilities, Agility Logistics form JV to create YANMU logistics parks in Egypt

Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, and Agility, the industrial development specialist, have announced the formation of Yanmu, a joint venture aimed at developing, building and operating modern logistics parks and Grade A warehousing facilities in Egypt. Yanmu East Logistics Park, the first site to be developed by the partnership, is a 270,000 square metre space located on the new Cairo Suez road, situated 15 km from Cairo Airport, and proximate to the Ring Road.

Yanmu East Logistics Park is scheduled to open in August 2023, while Yanmu West Logistics Park is set to launch in 2024. Both parks are designed to serve the storage and distribution needs of companies in a variety of sectors, including e-commerce, manufacturing, consumer products, food and beverage, technology, automotive, energy, industrial goods, healthcare, pharmaceuticals and others.

It offers tenants Grade A warehousing facilities, while also providing 24X7 security, power, connectivity and facility management. The facility incorporates advanced warehouse engineering features, including 14-metre ceilings, super-flat floors, efficient docking systems and docking. The site also features sustainable design elements, such as solar rooftops, which are designed to reduce power and water use, as well as to increase operational efficiency.

Both Agility and Hassan Allam Utilities have recently announced significant new investments and expansion plans in Egypt. In October, Agility unveiled plans to invest around $60 Million to develop and operate two customs and logistics centres in the Suez Canal Economic Zone. The project aims to modernise operations and improve the flow of goods and commodities in the Ein Sokhna industrial zone and at East Port Said.