United Arab Emirates Offset Program Bureau Adopts New Policy Guidelines

December 2010
Neal F. Grenley, Philip J. Power, Richard J. Burke

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In June of 2010, the Offset Program Bureau ("OPB") of the United Arab Emirates ("UAE") announced new policy guidelines for the UAE's Offset Program for international defense contractors (the "New Guidelines"). While, at least for the time being, the complete guidelines are confidential and not available to the public, the OPB has issued a summary highlighting the key terms of the New Guidelines, as well as the main differences from the guidelines previously in effect. According to the OPB, the New Guidelines are the result of a more than two-year initiative, including surveys conducted with major defense contractors and a review of offset programs in other countries, designed to make the UAE's offset program more flexible and transparent and to improve the options for defense contractors to satisfy their offset obligations, while at the same time catering to the economic and commercial needs of the UAE by creating strategic and sustainable projects in the country.