Another Dubai Deal Under Scrutiny
by Chad Groening
March 20, 2006
(AgapePress) - - One of the nation's prominent military analysts says he is concerned that the United Arab Emirates is trying to purchase a British manufacturing company that makes engine components for U.S. military aircraft and main battle tanks.Lt. Col. (Ret., U.S. Army) Bob Maginnis says due to security concerns, there is a U.S. law that limits the amount of military equipment that can be produced overseas. Now he says the Bush administration has informed Congress about a deal involving the U.A.E. company Dubai International Capital, which describes itself as a world leader in manufacturing highly complex castings for the aerospace, gas turbine, and petrochemical industries.
"This Dubai International company ... has acquired London-based Doncasters Group, which produces engine components and blade turbines for military platforms," he observes. "That, of course, is the type of thing that we monitor -- and that's what the purpose of that law is."
This is the second U.A.E.-based company that has been in the news lately. The first involved the potential operations management of six major U.S. ports by an Arab-owned group that had purchased another British firm. In that case, Dubai Ports World had to agree to sell its interest in the U.S. ports.
According to Maginnis, this more recent deal is also being examined. "Apparently it's been reviewed by the same people who looked at the six-port controversy with Dubai Port World, the organization that of course has been much in the news," he says.
Maginnis admits he is concerned about the number of foreign companies involved in purchasing U.S. resources. He points out that the Committee on Foreign Investment in the U.S. has greatly reduced its oversight of foreign transactions of this kind.
"The security review of those purchases has declined dramatically from 204 such investigations in 1989 to only 65 last year," he states. "And yet the international trade and the acquisition of multinational conglomerates has radically increased across the world."
Maginnis says he is pleased that a Treasury Department official has announced there will be an additional review of the Dubai parts manufacturer because of "unresolved security concerns." Bloomberg.com reports that Dubai International Capital and Doncasters have agreed to delay the $1.2 billion transaction for up to two months from March 31 while an investigation takes place.
