 | |
| Abbreviation | AOI |
|---|---|
| Formation | 1975; 50 years ago (1975) |
| Type | State-owned company |
| Purpose | Defence industry |
| Location | |
Region served | Arab world |
| Membership | Egypt Qatar (until 1993) Saudi Arabia (until 1993) United Arab Emirates (until 1993) |
Official language | Arabic |
Chairman | Abd El Aziz Seif-Eldeen |
Main organ | Supreme Committee |
| Staff | ~16,000[1] |
| Website | www.aoi.org.eg |
TheArab Organization for Industrialization (AOI) (Arabic:الهيئة العربية للتصنيع) is a company established in 1975 byEgypt,Saudi Arabia,United Arab Emirates andQatar to supervise the collective development of the Arabdefense industry. Following a gradual deterioration in relations between the AOI member-states, Egypt became sole owner of AOI in 1993. As well as meeting the requirements of theEgyptian military, AOI directs spare capacity to civilian programmes, including civilian transport andsanitation equipment; additionally, AOI has stated its intention of entering thewind power sector.[2]
Initially an institution ofPan-Arabism, Saudi Arabia and theUnited Arab Emirates returned their shares in AOI, valued at US$1.8 billion, toEgypt in 1993, leaving AOI wholly owned by Egypt. AOI has approximately 16,000 employees,[1] out of which 1,250 are engineers. AOI fully owns 12 factories and shares in 1 joint-venture, besides the Arab Institute for Development Technology.
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AOI was established by its four member-states - Egypt, Qatar, Saudi Arabia and the UAE - in response to the threat posed by the advancedIsraeli defence industry.[3] The initialcapitalisation of AOI was USD 1 billion, contributed in equal part by the four member-states, although with the understanding AOI would be based in Egypt.[4]
In 1978, AOI andWestland Helicopters, a Britishaerospace company, established theArab British Helicopter Company as a joint venture, but a year later AOI announced the company'sliquidation. In ensuingarbitration, theInternational Chamber of Commerce made anaward, on grounds of breach of the principles ofnatural law andgood faith, in favour of Westland Helicopters and against AOI's four member-states.[5] This award was later annulled by the Court of Justice ofGeneva,[6] which annulment was upheld by theSwissFederal Supreme Court, on grounds that the arbitrators had jurisdiction over AOI but not over the organisation's member-states.[7][8]
Following the signing of theEgypt-Israeli peace treaty (1979), Egypt had its membership to theArab League suspended and a policy of economic isolation implemented against it. It was in this atmosphere that the three AOI member-states other than Egypt - Qatar, Saudi Arabia and the UAE - withdrew from the AOI, causing its collapse.[3]
In 1983, the Egyptianchief-of-staff restated his interest in the joint manufacture of weapons, but it was only after the1987 Arab League summit inAmman, Jordan, when the Arab League re-admitted Egypt and the other Arab states normalised relations with Egypt, that the possibility of renewed co-operation among the AOI member-states seemed possible.[9]
The UAE seemed similarly eager to reinvigorate the AOI:[10] in 1988, Egypt and the UAE held talks with Qatar about its re-entry into the AOI, at which an agreement for closer co-operation between Egypt and Qatar in the fields of culture and communication was signed.[11]
AOI is one of the largestindustrial organisations in Egypt[1] with significant international relationships both in thedefence and civilian transport sectors.[1] The AOI is whollystate-owned by Egypt and administered by aSupreme Committee, the chairman of which is theEgyptian president and which includes severalcabinet ministers,[1] but it is not a division of theMinistry of Military Production as the treaty upon which it was established declares the Arab Organization for Industrialization as an independent international Organisation, even though it is now only owned by Egypt but the establishing treaty stays the same, and changing it requires the consent of the establishing parties .[12]
All AOI enterprises areISO 9000/2001 andISO 14001/2004 certified.[13]
The AOI'sAircraft Factory (Arabic:مصنع الطائرات, abbreviatedACF) was established in 1950 as Helwan Aircraft Factory and is a keyaerospace manufacturer in Egypt.[14] It is located inHelwan.[15]
The AOI Aircraft Factory manufactures and assembles aircraft for theEgyptian air force, including:
The K-8E is an Egyptian variant of the Chinese Hongdu JL-8, exported as the Karakorum-8 (or K-8) to (among others)Pakistan, Zambia andMyanmar. The K-8E's manufacture at the AOI Aircraft Factory began in 2000, under an agreement between the AOI andCATIC, the Chinese state-owned aerospace manufacturer, to produce a total of 60 K-8s over five years. The contract, valued at US$347.4 million, was signed in 1999 in connection with thestate visit byChinese presidentJiang Zemin that year.[16] Initially, most of the parts were manufactured in China and the aircraft were assembled in Egypt, but by the end of the programme the manufacture was to be carried out entirely at the AOI Aircraft Factory. In the end, 98% of each K-8E was locally manufactured.[14]
The AOI Aircraft Factory also manufacturesaircraft parts for theEgyptian Civil Aviation Authority (ECAA),Dassault Aviation andSAGEM, and has received certification from the ECAA for itswelding, painting, testing andcalibration operations.[14] The AOI Aircraft Factory also engages in civilian and technological projects.
In 1960, theEngine Factory (Arabic:مصنع المحركات) was established by theEgyptian military with German technical assistance as a base to design, develop and produceaircraft engines.[17] The first engines produced at the Engine Factory were:
In 1975, the Engine Factory was affiliated to AOI, since when it has focused its activities on the manufacture, assembly, repair and overhaul ofgas turbines and accessories. The AOI Engine Factory has established maintenance facilities forauxiliary power units andSNECMA Atar 09C,T56,CT64,PT6-25 and -64,Larzac 04,R-13 andR-25 engines.[17]
The AOI Engine Factory directs spare capacity to civilian projects, including the manufacture offuel injectors forRobert Bosch GmbH,air brake systems forKnorr-Bremse andrail fastening clips forPandrol.[17]
Compatible ordnance forBM-21 Grad,D-30 andM-46 artillery systems,M60 tanks,85 mm divisional gun D-44, andZSU-23-2 anti-aircraft guns.
M60 tanks andM1A1 Abrams assembly from knockdown kits
M60 andM1A1 Abrams engines and spare parts
Misr assault rifle andAK 47 complete manufacture (7,000 assault rifles a year), compatible ammunition
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AOI Electronics Factory
Sakr Factory for Development Industries (AOI)
Kader Factory for Development Industries (AOI)
Arab British Engine Co. (ABECO) (AOI)
Arab British Dynamics Co. ABD (AOI)
Arab American Vehicle (AAV)
Egyptian Railways Equipment (SEMAF (ARE))