UAE armoured vehicle venture with Paramount

The United Arab Emirates plans to make armoured vehicles in the Gulf Arab state in a joint venture with South African defence firm Paramount, an executive  said on Tuesday.

The project between Paramount and Abu Dhabi's International Golden Group will have an initial $100 million investment, said Paramount executive chairman Ivor Ichikowitz.

Production in the UAE may start as early as 2013, he said, Paramount will hold a 50-percent stake in the business.

"The joint venture will see a full technology transfer and manufacturing facilities in the UAE," he told Reuters on the sidelines of a defence expo. "The full scale production will involve an initial investment of $100 million plus indigenization of design suitable for the Middle East region."

The UAE is investing heavily in building a local defence industry through partnerships with international companies.