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January 6, 2014

France-UAE-Falcon Eye deal runs into rough weather

The multi-million euro Falcon Eye deal between the UAE and France has run into trouble following the discovery of security compromising components in the intelligence satellites, a high-level UAE source has revealed.

The multi-million euro Falcon Eye deal between the UAE and France has run into trouble following the discovery of security compromising components in the intelligence satellites, a high-level UAE source has revealed. A source was quoted by DefenseNews as saying that the observation satellites featured two US-supplied components that provide a back door to the highly secure data transmitted to the ground station.

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"We have requested the French to change these components and (have) also consulted with the Russian and Chinese firms,” the source added, without discussing the role Russia or China could play in future negotiations." 

”If this issue is not resolved, the UAE is willing to scrap the whole deal.”

”If this issue is not resolved, the UAE is willing to scrap the whole deal.” A number of high-level UAE delegates have been engaged in discussions with their Russian counterparts since the discovery to seek alternatives if the deal is scrapped, according to the source. Two high-resolution Helios-type military observation satellites were ordered by the UAE military along with two ground facilities for satellite control and image reception, in addition to operator training for 20 UAE engineers under a Dh3.39bn (€700m) contract from Astrium Satellites and Thales Alenia Space in July 2013. The satellites are expected to use the same satellite platform as the French military’s Pleiades satellite, which is capable of detecting objects as small as 70cm in diameter, and is slated for delivery in 2018, as reported earlier by the news agency.

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Free Report
img

How is the UAE Defense Market developing in 2022 and beyond?

The UAE's defense expenditure recorded an overall contraction of 0.7% between 2018 and 2022 and amounted to $22.5 billion in 2022. Defense expenditure over 2018-22 was driven by the UAE’s involvement in Yemen’s civil war and attempts to suppress insurgent activities and terrorism, in support of its ally Saudi Arabia. However, over the forecast period, the UAE’s expenditure is expected to reach $28.6 billion in 2027, growing at a CAGR of 4.8%. GlobalData’s UAE Defense Market (2022) Free Report offers a detailed analysis of the UAE defense market, with market size forecasts covering the next five years. This report analyzes factors that are influencing demand, as well as key market trends. The market is changing, and its important to stay informed if you want to make gains. This report’s key offerings include:  
  • Up-to-date overview of the events of the Yemen civil war
  • Outlook reports for the forecast period
  • Detailed analysis of UAE FY2022 defense budget, broken down into market size and market share
Download the full report to understand the UAE defense market trajectory, allowing you to make strategic business decisions.
by GD50 ADS
Enter your details here to receive your free Report.

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