Arab Organization for Industrialization

The Arab Organization for Industrialization (AOI) supervises nine military factories which are producing civilian goods as well as military products. Saudi Arabia and the United Arab Emirates gave their shares of AOI, valued at $1.8 billion, back to Egypt in 1993. AOI now is entirely owned by the government of Egypt. AOI has about 19,000 employees, out of which 1,250 are engineers. AOI fully owns 10 factories and shares in 2 joint ventures, besides the Arab Institute for Advanced Technology.

History

AOI was established in 1975 with the aim of building an advanced technological industrial base. Egypt, Qatar, Saudi Arabia, and the United Arab Emirates founded the Arab Organization for Industrialization (AOI) and capitalized the new organization with more than US$1 billion. These countries set up the AOI to establish an Arab defense industry by combining Egypt's managerial ability and industrial labor force with the Arab countries' oil money and foreign technology. The bulk of the arms manufacturing was intended to take place in Egypt. But the AOI floundered before it could become a major arms producer, because the Arab states broke relations with Egypt over Sadat's peace initiatives with Israel. Egypt kept the AOI functioning in spite of a 1979 proclamation by Saudi Arabia dissolving the body. Some of the AOI's members have renewed military contacts, but as of 1989, the AOI has not been restored to its original status.

The AOI has operated as an independent enterprise since 1979 and is exempt from Egyptian taxes and business restrictions. The AOI consists of nine companies, five wholly owned by Egypt and four joint ventures. The Egyptian plants manufactures missiles, rockets, aircraft engine parts, armored personnel carriers, electronics, radar, communications gear, and assembled aircraft. A joint venture with French firms assembles Gazelle combat helicopters and helicopter engines. A joint venture with the British manufactures the Swingfire antitank guided missile, while another venture with the Chrysler Corporation produces jeeps.

Affiliated Military Factories

AOI Aircraft Factory; Al Gomhuria is a basic flight trainer, of which about 200 were made by the Arab Organization for Industrialization.

AOI Engine Factory AOI Electronics Factory Sakr Factory for Development Industries (AOI) Kader Factory for Development Industries (AOI) Arab British Helicopters Co. (AOI) Arab British Engine Co. (ABECO) (AOI) Arab British Dynamics Co. ABD (AOI)
Arab American Vehicle (AAV)

International relations and cooperations

With the UK: British Aerospace, Rolls-Royce Motors

With the US: General Electric, General Dynamics

With France: Dassault Aviation, NYCO

With Canada: De Havilland Canada