AE's Tawazun takes 50% stake in Russia's VR Technologies

DUBAI (Reuters) - Tawazun, the United Arab Emirates’ defense and security industry enabler, is taking a 50% stake in VR Technologies, a unit of Russian Helicopters, the two companies said on Monday.

The announcement was made at the biennial Dubai Air Show as the UAE continues to invest in advanced defense industries as part of its diversification strategy. Tawazun is taking a stake in VR Technologies through the Tawazun Defense Security & Development Fund.

Both companies will be investing 400 million euros, a statement from Russian Helicopters said. Tawazun also gets equal representation on the board of VR Technologies.

An agreement was signed by the director-general of Russian Helicopters, Andrey Boginsky and the director-general of Tawazun, Tareq Abdul Raheem Al Hosani.

The transaction will be finalised in first quarter 2020.