February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

The Tawazun Council, formerly known as the Offset Program Bureau, is the UAE’s defense and security acquisitions authority responsible for overseeing defense procurement processes, administering economic benefit programs, and fostering the development of a sustainable domestic defense industrial base. Established in its current form in 2010, the council ensures that major defense contracts generate tangible economic returns for the UAE through offset obligations, technology transfer requirements, and local content mandates. Tawazun also operates as an investor and incubator for defense-related industrial ventures within the UAE.

UAE Context

Tawazun administers the UAE’s economic benefit program, which requires international defense contractors winning UAE contracts to reinvest a percentage of contract value into the UAE economy. These offset obligations may take the form of joint ventures, technology transfers, workforce training, or direct investments in UAE-based enterprises. The council has been instrumental in establishing several manufacturing and technology companies in the UAE, contributing to the buildup of indigenous defense capabilities. Tawazun also organizes and supports the IDEX and NAVDEX defense exhibitions in Abu Dhabi, which are among the largest defense trade shows in the world.

Key Data

  • Established: 2010 (successor to the Offset Program Bureau)
  • Core functions: Defense procurement oversight, economic benefit programs, industrial development
  • Economic benefit requirement: Percentage of contract value reinvested in UAE
  • Associated events: IDEX, NAVDEX defense exhibitions
  • Investment portfolio: Stakes in defense-related manufacturing and technology companies
  • Headquarters: Abu Dhabi

Significance for Vision 2031

Tawazun’s role in converting defense spending into domestic economic development directly supports Vision 2031’s industrial diversification goals. By requiring technology transfer and local content from international defense contractors, the council accelerates the development of UAE-based capabilities in advanced manufacturing, cybersecurity, and engineering. These capabilities have dual-use applications that extend well beyond defense, contributing to the knowledge economy infrastructure the UAE aims to build by 2031.

  • EDGE Group - UAE’s defense technology conglomerate developed partly through Tawazun initiatives
  • Strata Manufacturing - Aerospace manufacturer supported by defense offset programs
  • Emiratisation - Workforce nationalization advanced through defense sector employment