Main headlines from this issue

Colombia furious with contractors who disclose multipliers

Multipliers have led to multiple problems for contractors negotiating offset commitments with Colombia. Some contractors, we are reliably informed, have exchanged information — and found that different integers have been agreed with different contractors for similar benefits...

Ukrainian offset guidelines still in development

The Ukrainian Defence Ministry views the introduction of offsets as an important step for attracting foreign investment for rearming the country’s armed forces and is developing a suitable policy, Defence Minister Yuriy Yekhanurov told a discussion group in Kiev on the use of offset transactions...

SABIC seeks expansion through barter

An Economist Intelligence Unit report states that the Saudi Basic Industries Corporation (SABIC), a global manufacturer and supplier of chemicals, fertilizers, plastics and metals, has in the past arranged petrochemicals-for-rice deals. The company may be open to other similar arrangements as it seeks to expand its market position in Southeast Asia, Africa, and the states of the former Soviet Union. The use of countertrade, which conforms with Islamic finance practice, is likely to increase, the report says...

BAE to set up assembly line in southwest Saudi Arabia

BAE Systems is in advanced talks with a Saudi firm about building an assembly line for 48 Eurofighter Typhoons in Saudi Arabia following the Saudi Air Force’s declared intention to purchase 72 Typhoon aircraft for at least 4.43bn pounds...