Main headlines from this issue

Tawazun embraces ICV requirement, but leaves industry uncertain

The UAE’s in-country value (ICV) programme has made its way to the defence sector. One year after Tawazun joined the programme, ICV requirements have emerged in public conversation and offset negotiations. But the dust has not settled. During IDEX 2023, four defence contractors described very different experiences with ICV, with some still confused about how it will interact with the existing offset guidelines.

India still open to Russian suppliers, the more “accommodating” offset partner

Rosoboronexport, Russia’s sole state arms exporter, came out in force at Aero India (13–17 February). The conglomerate had a clear strategy: generous offset packages in exchange for the Indian government’s continued consideration. After all, Russia is almost always more flexible that its western counterparts in supporting indigenisation, says Amit Cowshish, former financial advisor to the Ministry of Defence.

Rolls-Royce offers to co-create engine IP with India

Rolls-Royce is offering to co-produce new engine technology for India’s advanced medium fighter (AMCA), in an offer that sets it apart from its competitors, Safran and General Electric, which have both opted for the more traditional route of transferring existing technology.

Despite Russian strikes, Ukraine and UK in talks for weapons co-development

Executives from BAE Systems travelled to Ukraine this month to discuss the possibility of manufacturing weaponry and military vehicles under licence in the war-torn country. The move puzzles some analysts, who are concerned that Ukraine will be unable to protect is production lines and personnel from Russian strikes.

HAL challenges KAI over Egyptian LCAs

Hindustan Aeronautics Limited has committed to a “complete transfer of technology” and local manufacturing if it is selected to supply Egypt with 20 Tejas light combat aircraft (LCA). “We are willing the build the Tejas ecosystem for them, right from raw materials to the final production,” the company said at Aero India.

Fincantieri in final race for Greek corvettes

Fincantieri, one of the two final contenders in Greece’s €1.6bn contract for four corvettes, has teamed up with Leonardo, MBDA Italia, and Elettronica to sign MoUs with eight Hellenic suppliers. The agreements were signed on 12 February in Elefsis, where Fincantieri’s main partner, Onex Elefsis Shipyards, is based.