The United Arab Emirates (UAE) is building its first munitions factory, which will provide weapons to armed forces in the UAE and in the wider region.
Three companies are joining forces to create the Al-Burkan munitions factory, which will be worth $72 million.
The factory will begin production in mid 2009, according to Gulf News.
The weapons manufactured will include aircraft bombs, artillery, naval rounds and small arms ammunition.
Analysts say the initiative might be in response to the prevailing sense of threat from Iran, due to the latter’s nuclear program.
Iran insists its atomic program is for peaceful purposes but Tehran is under international pressure from the West for fear that it is covertly manufacturing a nuclear bomb.
Gulf states are unhappy about the prospect of a nuclear powerful Iran and several countries are planning nuclear programs of their own.