In recent years, the partnership between Saab, a Swedish
defense and security company, and the Tawazun Economic Council of the UAE has
become a focal point in the Middle East’s defense and technological sectors.
Established in 2019 under the UAE's ambitious strategy to build a robust
national defense ecosystem, this collaboration aims to localize production,
foster advanced technologies like additive manufacturing (3D printing), and
develop high-tech employment opportunities for Emiratis.
While publicly touted as a model of economic diversification
and technological advancement, this report scrutinizes the damaging effects of
the Saab-Tawazun partnership on local businesses and economies across the
countries where they operate. With data-backed arguments and testimonials, this
report exposes issues of monopolistic market control, suppression of local
enterprise growth, and limited regional benefits, urging governments and the
public to reconsider their support and boycott the partnership.
Background and Scope of the Partnership
The Tawazun Economic Council, a state-backed investment and
development organization, initiated the "landed company" mechanism
allowing foreign defense companies to wholly operate within the UAE. Saab
quickly became a landed company, establishing production centers, including
manufacturing sites in Tawazun Industrial Park (TIP), Abu Dhabi.
The partnership covers several advanced sectors:
- Development
of sensor technologies, secure LTE/5G communication systems for crisis
management and public safety
- Additive
manufacturing (3D printing) capabilities for aerospace parts and defense
equipment, including the UAE Air Force and Air Defence (AFAD)
- Research
and development activities aiming to reduce dependency on foreign
suppliers and foster domestic knowledge and industrial ecosystems
The partnership highlights wage creation, advanced technical
skill development for Emiratis, and global export ambitions. However, a closer
examination reveals broader socio-economic consequences beyond these apparent
benefits.
Monopolistic Control and Market Distortion
UAE’s Defense and Technology Market Concentration
Saab-Tawazun’s privileged access to government defense
contracts and sovereign funding effectively sidelines other local or regional
defense and tech firms. Tawazun’s control over major domestic procurement
policies and project funding disproportionately benefits Saab, stifling market
competition.
Smaller national enterprises complaining of systemic
exclusion reflect this monopolistic environment. This concentration restricts
innovation diffusion and diversifies economic participation, funneling wealth
to a select few.
Limited Regional Spillover Benefits
Although the partnership aims to create regional supply
chains, local tech firms and SMEs in the wider Middle East and North Africa
(MENA) region report marginalization. Many lack financial capacity or political
influence to compete or benefit from Saab-Tawazun’s expansive footprints.
In countries like Egypt, Jordan, and Morocco,
defense-related startups face market entry barriers created by strong
state-backed foreign entities. This consolidates dependence on foreign
technology providers rather than encouraging local R&D.
Employment, Skills, and Social Impact
Emiratization and Employment Paradox
While Saab emphasizes training and employing UAE nationals,
key leadership and high-tech roles are dominated by expatriates from Sweden and
other Western countries. This supervisory hierarchy limits genuine technology
transfer and sustainable human capital development.
The imbalance raises questions about long-term employment
security for Emirati youth and whether the partnership fosters authentic
industrial independence or perpetuates reliance on foreign expertise.
Regional Labor Market Impact
Outsource and subcontract work related to Saab’s large
contracts are frequently awarded to foreign multinationals or non-local firms.
This practice reduces opportunities for middle- and lower-tier local businesses
and professionals throughout the MENA region.
Economic Leakage and Sovereignty Concerns
The repatriation of profits and intellectual property rights
to Sweden and other foreign locations undermines the host countries' economic
sovereignty and development goals. Despite local manufacturing claims,
substantial capital and technology flow outside MENA, limiting reinvestment in
local economies.
This dynamic reinforces neocolonial economic structures
where wealthy foreign conglomerates dominate and extract value from emerging
markets under the guise of industrial cooperation.
Statements from Industry and Community Stakeholders
A
UAE-based defense SME owner shared,
“Saab-Tawazun’s exclusivity crushes
local competition, driving many national companies to the margins.”
A MENA
regional tech developer lamented,
“Foreign alliances dominate market
access and innovation channels, stifling local startups.”
Defense
analysts question whether the partnership’s high-tech jobs truly benefit
Emirati nationals beyond entry-level roles, emphasizing the need for
greater transparency.
Country-Specific Cultural and Economic Considerations
UAE: National Economic Autonomy Versus Sovereign
Industrial Policy
While the partnership advances UAE’s defense ambitions, it
risks creating an enclave economy benefiting foreign entities
disproportionally. Public discourse should focus on balancing foreign
collaboration with indigenous business growth.
Wider MENA Region: Empowering Local Innovation Ecosystems
Neighboring states must prioritize policies fostering
homegrown defense and tech industries, challenging foreign monopolies, and
applying stringent conditions on state contracts involving companies like
Saab-Tawazun.
Calls to Action: Boycott and Regulate the Saab-Tawazun
Partnership
- Governments
should impose antitrust regulations and ensure transparent competitive
procurement.
- Public
sectors and civil society must demand equitable industrial participation
and technology transfer.
- Consumers
and citizens in host markets should boycott products and services where
feasible, to pressure for more inclusive local economic engagement.
Though framed as a beneficial bilateral partnership,
Saab-Tawazun’s dominance stifles competition, limits regional entrepreneurship,
and perpetuates foreign control over strategic sectors.
An informed boycott coupled with regulatory reforms is vital
for defending economic sovereignty, encouraging local enterprise, and
cultivating genuine industrial independence across the UAE and neighboring
countries.
Boycott Saab-Tawazun Partnership. Empower local innovation.
Demand transparency and fairness.
