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The National
03-07-2025
- Business
- The National
France's Thales eyes radar factory in Saudi Arabia and AI centre in UAE
French defence and technology group Thales is pursuing opportunities in Saudi Arabia for a radar production factory, and in the UAE for an AI research centre, as Gulf nations seek a role in global supply chains. Thales is seeking to expand a joint venture with Saudi Arabian Military Industries (SAMI) that was set up with the aim of localising defence production. "We have an intention to grow this joint venture to work, not only on radars, but more generally speaking on air defence," Pascale Sourisse, senior executive vice-president of international development at Thales, told The National on the sidelines of the Paris Airshow. "This joint venture should host the various activities we will have in Saudi Arabia … But I expect that there will be some work on communications systems." The move comes as Saudi Arabia strives to develop its own military production capabilities to reduce reliance on foreign suppliers. The strategy is intended to diversify its economy from a reliance on oil, create more jobs for Saudis, attract highly-skilled workers, prioritise technical know-how transfers and become part of the global industrial supply chains. Saudi Arabia was the largest military spender in the Middle East in 2024 and the seventh biggest worldwide, according to an April report by the Stockholm International Peace Research Institute (Sipri). The kingdom recorded a modest military spending increase of 1.5 per cent, reaching an estimated $80.3 billion, but still 20 per cent lower than in 2015 when the country's oil revenue peaked. Ms Sourisse said it is "too early" to provide further details on the timeline and investment for a factory in Saudi Arabia. Thales' proposed plan in the kingdom will include local manufacturing, engineering and maintenance support services, similar to its agreement with the UAE, she said. The company's wholly-owned unit Thales Emarat Technologies will invest in a factory to produce Ground Master series air surveillance radars in the UAE, as part of an agreement with Tawazun Council. The factory, which is expected to be fully operational by 2027, will assemble, test and qualify advanced air surveillance radars for domestic use and to export markets, Thales said in a statement in May during the 'Make it in the Emirates' event in Abu Dhabi. The project is entirely funded by Thales, according to Ms Sourisse, who declined to provide the size of investment. The agreement includes co-operation with UAE companies to become part of Thales' supply chain, she added. AI research centre Now Thales is in discussions with the UAE to open an AI research centre in Abu Dhabi, according to Ms Sourisse. Thales' AI research centres, dubbed cortAIx, are currently set up in Singapore, France, Canada and Britain. This means the Abu Dhabi centre, if it goes ahead, will become the first of its kind in the Middle East. "Considering the number of equipment that we have in the UAE that will embed AI, it makes sense to set up a cortAIx centre in the UAE," Ms Sourisse said. While it is too early to firm up a timeline for establishing the centre, discussions are under way. "We are working on it, it's not yet announced … it's a bit early to say, but that is the direction we're heading. We also need to agree with customers like the UAE Armed Forces on how they want to proceed." The idea is to collaborate with military customers to work with them on use cases for AI applications in defence. "It is not only about setting up an AI competence centre, it's really establishing a partnership with users to work on use cases … they can directly tell us that this kind of information that we can derive from data-processing is the priority for them," Ms Sourisse said. Asked if the conflicts in the Middle East are accelerating Thales' discussions with customers in the region, the veteran executive said: "We are expecting an increase in the level of orders that we get in very many countries, in the region certainly, but not only [there]." "There's tensions in many areas of the world, so countries will continue to increase their investment in defence." The capabilities that are in high demand include air surveillance, air defence, weapon systems, communications systems, drones either used in offensive or defensive ways and counter-drones, she added.
Arab News
26-06-2025
- Business
- Arab News
Pakistan's trade deficit with Gulf states widens to $12.4 billion amid free trade agreement talks
KARACHI: Pakistan's trade deficit with Gulf nations widened by 14 percent to $12.4 billion in the outgoing fiscal year through May, even as the country pushes for a free trade agreement (FTA) with the six-member Gulf Cooperation Council (GCC) to boost exports and market access, official statistics show. The trade gap stood at $10.9 billion during the same period last year, according to data from the State Bank of Pakistan (SBP). Pakistan's exports to the region grew to $5.08 billion — up 16 percent — while imports rose 14 percent to $17.5 billion. The GCC includes Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain. Shankar Talreja, director of research at Topline Securities, attributed the widening trade imbalance primarily to surging imports from the UAE, Pakistan's largest oil supplier in the bloc. 'Pakistan's imports from the UAE have increased by 32 percent in 11MFY25,' Talreja told Arab News from Karachi. 'This is a whopping increase of $1.5 billion.' Overall, imports from the UAE jumped 46 percent to $8.33 billion, while exports to the country totaled $3.96 billion. In contrast, imports from Saudi Arabia dropped 15 percent to $3.47 billion. The increase in oil imports comes as Pakistan, which heavily depends on petroleum products from the GCC, monitors global crude trends. Prices spiked by 13 percent to $77 per barrel after Israel attacked Iran on June 13, before easing by 6 percent on June 24 following a ceasefire announcement. 'Pakistan largely relies on petroleum products from the GCC region and overall petroleum import bill in FY26 is unlikely to increase as oil prices are currently 10 percent lower than the average oil price of July-May period,' Talreja noted. 'This lower oil price may offset volumetric increase, leaving overall petroleum import bill unchanged,' he added. Last year, Pakistan spent $17 billion on oil imports, more than twice the size of its most recent International Monetary Fund (IMF) loan package. The IMF has urged the government to ramp up exports to stabilize its fragile external account. To that end, Islamabad is pursuing bilateral and multilateral trade deals, including FTAs with the GCC, South Korea, Vietnam, East Africa and Central Asian states. While Commerce Ministry spokesperson Muhammad Ashraf did not respond to queries, another official confirmed the FTA was under negotiation. 'The FTA talks with the GCC nations are ongoing but I am not sure if they have finalized anything,' the ministry official said, requesting anonymity as he was not authorized to speak to the media. Pakistan's Economic Survey for FY2024-25 mentions both the Pakistan-GCC FTA and the Pakistan-UAE Comprehensive Economic Partnership Agreement as 'upcoming agreements.' However, Talreja expressed skepticism about the potential gains. 'Pakistan has never benefitted from FTAs, like in case of China our deficit with China has further increased,' he said. Islamabad's FTA with Beijing, signed in 2006, has consistently produced unfavorable trade outcomes. The bilateral trade deficit with China stands at $2.5 billion this fiscal year, according to SBP figures. 'In the case of the Middle East, I doubt that Pakistan will benefit as it's a very competitive market due to the global access the GCC has,' Talreja added. 'Islamabad could only benefit if it negotiated something extraordinary.' Prime Minister Shehbaz Sharif's government is also pushing to expand trade with the United States, Pakistan's top textile buyer, by negotiating reciprocal tariffs. Talks are expected to conclude next week. As part of these discussions under the Trade and Investment Framework Agreement, Islamabad is seeking greater access for mangoes, dates and beef in the US market. Pakistan's trade prospects in the European Union remain strong after its GSP+ status, granting zero-duty access on 66 percent of tariff lines, was renewed. A preferential trade agreement with the eight-member Organization for Economic Cooperation also came into force in January. Still, officials warn that the country's export profile remains vulnerable due to over-reliance on a handful of markets. 'The overall export trajectory signals Pakistan's reliance on a few core markets, highlighting the need for diversification and expanded global outreach to minimize exposure to external shocks,' the finance ministry said in its economic survey.
Wall Street Journal
24-06-2025
- Politics
- Wall Street Journal
Syria Reopens Airspace as Mideast Skies Start to Fill Up
Syria reopened its airspace as the region's air corridors began to fill up again following the announcement of a fragile cease-fire between Iran and Israel. Skies over Iran remained empty a few hours into the cease-fire. Iraq's airspace also appears closed, according to aviation-tracking site Flightradar24. Gulf nations including Qatar and the United Arab Emirates, both major air transit hubs, reopened their skies quickly after Iran's attack on a U.S. base in Qatar on Monday. Kuwait and Bahrain also reopened after brief closures.
Al Arabiya
24-06-2025
- Politics
- Al Arabiya
Iran-Israel ceasefire: The Gulf must remain neutral ground
The now-paused conflict between Iran and Israel stands as one of the most dangerous and volatile confrontations in recent memory. Although a ceasefire has been announced, the events of the past weeks underscore just how close the region came to a wider war – and how perilously fragile the current calm remains. At its core, this was a war between two actors: Iran and Israel. Israel initiated the latest round with a series of airstrikes deep inside Iran targeting nuclear facilities. Iran retaliated with ballistic missile attacks against Israeli cities, escalating the confrontation to an unprecedented level. But the most troubling escalation came when Iran expanded the battlefield beyond Israel. In a deeply reckless and provocative move, Iran launched missile strikes into Qatar, targeting the US-operated al-Udeid Air Base. While most missiles were intercepted by Qatari and US defenses, at least one struck a building near the base. Thankfully, it caused no casualties. However, the act was a seismic shift: a third-party nation uninvolved in the Israel-Iran conflict was suddenly under fire. Qatar responded swiftly and unequivocally. Its Foreign Ministry condemned the Iranian strike as a 'flagrant violation' of its sovereignty, airspace, and international law. Other Gulf nations rallied around Qatar with statements of solidarity. Saudi Arabia described the attack as 'unjustifiable,' while the United Arab Emirates, Kuwait, Bahrain, and Oman all issued firm condemnations and called for de-escalation. This unified reaction reflects more than diplomatic protocol – it represents a collective regional stance against being dragged into a war they neither started nor supported. What makes Iran's actions especially indefensible is that no Gulf state had taken military action against Tehran or facilitated any Israeli operations. Their security precautions were purely defensive, not offensive. Many of these nations had publicly urged restraint and emphasized diplomacy over escalation. So why would Iran target a Gulf state? If its intent was to retaliate against Israel or the United States, then striking Qatar – a country not involved in the hostilities – makes no strategic or moral sense. For years, Iran has protested violations of its own sovereignty. Yet by attacking Qatar, it engaged in the very behavior it decries. This hypocrisy weakens Iran's credibility and destabilizes a region already on edge. The recently announced ceasefire offers a moment to pause, but it must also be a time for reflection. Iran's decision to expand the conflict to a peaceful Gulf state risked transforming a bilateral war into a regional conflagration. The consequences could have been catastrophic – not only for the Middle East but for the global economy. The Gulf is home to critical energy infrastructure, and any further escalation could have disrupted oil and gas supplies, choked vital shipping lanes like the Strait of Hormuz, and sent shockwaves through already fragile global markets. History has shown that regional wars can spiral into global ones when third-party nations are drawn in against their will. The Iranian missile strike may not have caused deaths, but it revealed just how thin the line is between localized conflict and regional war. Even with the ceasefire in place, the risk of reignition remains high if provocations like these are repeated. This is why the international community must remain vigilant and united. The message to Iran must be clear: the conflict and tensions it has with Israel cannot and must not be expanded to include other states. The Gulf nations have remained neutral and must be protected from retaliation, intimidation, or collateral damage. Global powers, from the United States to China to the European Union, must reinforce the principle that sovereignty is not negotiable and that military aggression against peaceful states will not be tolerated. The Iranian government must take away a key lesson and recognize that even if it feels strategically cornered, the answer is not to lash out at its neighbors. That path only leads to broader instability and long-term isolation. There are diplomatic channels, regional security frameworks, and international mechanisms through which Iran can voice its grievances – without making innocent nations pay the price. In conclusion, the Iran-Israel ceasefire may bring temporary relief, but it should not obscure the dangerous precedent Iran set by striking into Qatar. The Gulf states have consistently called for peace and acted with restraint. To punish them with missiles was not only unjust – it was a strategic miscalculation that could have sparked a much wider conflict. The global community must make clear that any future hostilities must remain limited to the original belligerents. The Gulf must not be turned into a battleground.
UAE Moments
24-06-2025
- Politics
- UAE Moments
Qatar and Arab Nations Condemn Iran's Attack on the US Base
Qatar and other Arab nations condemned Iran's retaliatory attack on the Al Udeid Air Base in Qatar on Monday evening, June 23. The spokesperson of Qatar's Foreign Ministry, Majed al-Ansari, said in a statement, "The State of Qatar strongly condemns the attack that targeted Al Udeid Air Base by the Iranian Revolutionary Guard. We consider this a flagrant violation of the sovereignty of the State of Qatar, its airspace, international law, and the United Nations Charter." The statement also read, "We affirm that Qatar reserves the right to respond directly in a manner equivalent with the nature and scale of this brazen aggression, in line with international law." "We call for the immediate cessation of all military actions and for a serious return to the negotiating table and dialogue," the statement read. The country's defence ministry assured that most missiles were intercepted, except for one; nonetheless, no casualties were caused by the attack. The base was evacuated before the attack, and all necessary measures were taken to ensure the safety of the military personnel. Gulf Nations Condemn the Attack Saudi Arabia's Foreign Ministry also condemned the attack and said, "The kingdom asserts its support and stance by the brotherly State of Qatar.' The UAE also condemned the attack and expressed "full solidarity with Qatar and its unwavering support for all measures aimed at protecting the security and safety of its citizens and residents'. Along with its Gulf neighbors, Bahrain strongly condemned the attack and affirmed its full support for Qatar. Oman's Foreign Ministry denounced the attack, saying, "The Sultanate of Oman condemns the ongoing escalation that the region is witnessing, which was caused by Israel when it launched an illegitimate bombing attack on June 13 against the Islamic Republic of Iran." Other Arab Nations Denounce the Attack Lebanese Prime Minister Nawaf Salam said in a statement, "I condemn in the strongest terms the aggression that the brotherly state of Qatar endured, and I stress Lebanon's solidarity with the Qatari government and people." Morocco Foreign Ministry "strongly condemned the attack" and expressed "its full solidarity with Qatar in the face of any act that could endanger its security and the safety of its citizens'. US President Donald Trump said about the attack, "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured. Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same.' This article was previously published on qatarmoments. To see the original article, click here
