Egyptian Military Industry
Encyclopedia
The Military industry of Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...

is the most important in the Arab world
Arab world
The Arab world refers to Arabic-speaking states, territories and populations in North Africa, Western Asia and elsewhere.The standard definition of the Arab world comprises the 22 states and territories of the Arab League stretching from the Atlantic Ocean in the west to the Arabian Sea in the...

. State-owned enterprises, under control of the Armament Authority headed by a major general, are the main domestic producers of Egypt's defense systems. The Armament Authority was responsible for selecting, developing, and procuring military systems. Acting on behalf of the military's branches, the authority assigned production to domestic factories or contracted with external suppliers. The National Organization for Military Production within the Ministry of Military Production supervises a number of manufacturing plants, which were usually named after their location.

U.S. military aid finances most of Egypt's big-ticket defense procurements--$1.3 billion annually for several years. Large projects underway include the M1A1 Abrams tank manufacturing facility, M88A2 coproduction program, IFF, the HAWK rebuild program, and Peace Vector V. Such projects can be expected to continue, although improvements to and maintenance of existing force capabilities are perhaps more likely targets of future spending than entirely new systems.

History

As early as 1949, Egypt unveiled plans to develop an armaments industry with the industrial base that emerged during World War II when British and American forces placed orders for equipment. Egypt entered into a number of joint venture projects to produce European-designed aircraft.

The most successful of these led to the Al Gomhuria basic flight trainer, of which about 200 were eventually made. In 1962, Egypt undertook a major program with the help of West German technicians to design and build a supersonic jet fighter, but the government terminated the project because of financial strains caused by the June 1967 War.

During the 1970s and 1980s, Egypt expanded and diversified its production of arms to achieve partial self-sufficiency and to develop an export market in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 and Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

. In addition to manufacturing small arms and ammunition, Egypt had begun producing or assembling more advanced weapons systems through licensing and joint venture agreements with companies based in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and Western Europe
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...

. Egyptian technicians and scientists developed several indigenous weapons systems.

The main purchaser of Egyptian defense products had been Iraq. In the early 1980s, Iraq was desperate to replace Soviet military equipment lost during the early stages of the war with Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

. Iraq blunted Iranian attacks with the Saqr 18, the Egyptian version of the Soviet BM-21 122mm multiple rocket launcher.

Egypt sold a smaller volume of weapons to Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

 and other Arab Gulf states. In 1988 Kuwait was reported to have ordered about 100 Fahd armored personnel carriers; Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...

 and Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...

 ordered smaller quantities of these carriers.

Agencies

The Arab Organization for Industrialization
Arab Organization for Industrialization
The Arab Organization for Industrialization is an Egypt-based Arab military organisation established in 1975 by Egypt, Qatar, Saudi Arabia and the United Arab Emirates to supervise the collective development of the Arab defence industry. Following a gradual deterioration in relations between the...

 supervises nine military factories which are producing civilian goods as well as military products. Initially the owners of AOI were Egypt, Saudi Arabia, and the United Arab Emirates, before both countries gave back to Egypt their shares in 1993, valued at $1.8 billion. AOI now is entirely owned by the government of Egypt. AOI has about 19,000 employees out of which are 1250 engineers. AOI fully owns 6 factories and shares in 3 joint ventures, beside the Arab Institute for Advanced Technology.

The National Service Products Organization operates three companies that manufacture military and civilian products. NSPO also provide contracting services.
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