No offsets clause in UAE's $5 billion Apache helicopter deal

There will be no offsets clause in U.A.E.’s $5 billion deal with the U.S. government with Boeing and Lockheed Martin as prime contractors for 60 Apache AH-60D Block III helicopters, the U.S. Defense Security Cooperation Agency (DSCA) said in a statement. “There are no known offset agreements proposed in connection with this potential sale”, the DSCA statement said. This is interesting because the U.A.E. has an offsets policy where up to 30% of the contract value in defence and aerospace deals must be invested back in the country. In the past few years, the Middle Eastern nation has vigorously pursued defence offsets implementation. The DCA notified Congress November 3 of a possible Foreign Military Sale to the United Arab Emirates of 30 AH-64D Block II lot 10 Apache helicopters, remanufactured to AH-64D Block III configuration, and 30 AH-64D Block III Apache helicopters, as well as associated parts, equipment, training and logistical support for a complete package worth approximately $5.0 billion. The Government of the United Arab Emirates (UAE) has requested a possible sale of: --30 AH-64D Block II lot 10 Apache helicopters, remanufactured to AH-64D Block III configuration, -- 30 AH-64D Block III Apache helicopters, -- 120 T700-GE-701D engines, -- 76 Modernized Target Acquisition and Designation Sight/Modernized Pilot Night Vision Sensors, -- 70 AN/APG-78 Fire Control Radars with Radar Electronics Units, -- 70 AN/ALQ-144A(V)3 Infrared Jammers, -- 70 AN/APR-39A(V)4 Radar Signal Detecting Sets, -- 70 AN/ALQ-136(V)5 Radar Jammers, 70 AAR-57(V)3/5 Common Missile Warning Systems, [and] 30mm automatic weapons, improved counter measure dispensers, communication and support equipment, improved helmet display sight systems, trainer upgrades, spare and repair parts, publications and technical documentation, personnel training and training equipment, U.S. Government and contractor engineering and logistics support services, and other related elements of logistics support.