Main headlines from this issue

Saudi Arabia prepares demanding guidelines

Saudi Arabia’s General Authority for Military Industries (GAMI) is adding new requirements to its guidelines that obligors will find particularly demanding. Preliminary indications suggest that GAMI wants OEMs to negotiate offset projects before signing the offset MoA. Current quotas will rise and the threshold will fall...

Swiss policy committee calls for higher offset quota with commercial benefits

Switzerland’s Security Policy Committee in the Council of States, parliament’s upper house, is recommending that the Swiss parliament oppose a planned reduction of the offset quota. The decision lays the groundwork for a debate in parliament which could see the return of a 100 percent offset quota for “Air 2030,” the country’s forthcoming fighter procurement.

Korea: DAPA holds a “non-event” to satisfy OEMs

South Korea’s Defence Acquisition Program Administration (DAPA) has met OEMs to help solve “difficulties” with the country’s offset program. Delegates who attended described the meeting as a non-event.

Russia: Regional governments call for lower threshold for inter-state offsets

The state government of the Russian region of Udmurtia has complained that the current offset threshold of RUB1bn ($15.3m) is too high for regional investors and does not allow local areas to benefit from offset transactions. The local government plans to petition the State Duma of the Russian Federation for a change to federal legislation that would waive the threshold.

Israel: Transport ministry and ICA argue about industrial cooperation

Factional fighting between Israel’s Industrial Cooperation Authority (ICA) and the Ministry of Transport over the application of industrial cooperation quotas could thwart two tenders for the construction of new railway lines.