The three companies are to explore consolidation opportunities between their defense services businesses
Abu Dhabi-Mubadala Development Company, Tawazun Holding and Emirates Advanced Investments today signed a Memorandum of Understanding (MoU) expressing their intent to explore the synergy opportunities that could be created by the unification of their defense services businesses. The MoU, signed at the International Exhibition for Security and National Resilience (ISNR) in Abu Dhabi, will form the basis of discussions regarding the creation of a single integrated Abu Dhabi-based defense services platform.
Benefits that could be realized from the creation of an integrated platform include economies of scale, supply chain rationalization and a single point of contact for customers. The creation of an integrated platform would also help to accelerate the development of technological capabilities and drive additional employment opportunities for UAE citizens.
Homaid Al Shemmari, CEO, Aerospace and Engineering Services at Mubadala Development Company, commented: "Tawazun, Mubadala and Emirates Advanced Investments currently manage a range of complementary defense services businesses. There is a clear opportunity to combine our related assets to the benefit of the UAE's wider defense sector as well as our local and international customers. We believe an integrated defense services platform can drive both technological advancement and job creation"
H.E. Saif Mohamed Al Hajeri, CEO, Tawazun Holding, commented: "Unifying the capabilities of Tawazun, Mubadala and Emirates Advanced Investment Group presents an opportunity to further catalyze the growth of these businesses. All the parties involved stand to benefit from a successful outcome of these discussions."
Obeid Al Mansouri, CEO, Emirates Advanced Investments Group, said: "We believe that consolidation of the businesses will deliver benefits to all stakeholders. Each of the businesses has already delivered impressive growth and their unified potential is even greater. These discussions are a clear indication of the potential that will be created by the combined growth of our businesses."
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© Press Release 2014
