By Staff Correspondent
Dassault Aviation, the French aircraft manufacturer, is reportedly in talks with Tawazun, the United Arab Emirates (UAE) military acquisitions fund, over a blocked offsets contract for 80 Rafale fighter jets. According to Paris-based Intelligence Online, the French government is seeking to persuade Abu Dhabi to transfer the offsets contract of the €16bn UAE order to India.
The proposed move comes as Dassault tries to make up for delays on the offset obligations of an €8 billion contract signed with India for 26 Rafales in 2016. The company was fined by the Government of India for being late on those obligations in December 2021. Dassault hopes to utilise Indian subcontractors for some components of the 80 “Emirati” Rafale if Tawazun agrees to the proposal.
The French government has also launched a trilateral partnership plan between France, UAE and India, covering health and military interoperability topics. The plan aims to increase defence co-production and technology transfers. Xavier Chatel de Brancion, who shaped the project for France during his tenure as ambassador to Abu Dhabi, joined President Emmanuel Macron’s diplomatic team in September 2022.
The proposed move comes when French companies struggle to meet offset terms, and Dassault hopes to secure additional major contracts in India. The company is also hoping to ride a wave of heightened UAE-France-India cooperation.
The discussions between Dassault and Tawazun over the offsets contract for 80 Rafales are still in their early stages. However, transferring the contract to India would be a significant step towards closer cooperation between the three nations, with potential benefits for Dassault and the Indian defence industry.
