An Abu Dhabi-based company announced Feb. 27 it was setting up a small-arms manufacturing facility with international assistance, the first such plant in the United Arab Emirates.

The International Golden Group said it would invest 500 million dirhams ($136 million) in the first phase and expand the investment by up to two billion dirhams ($544 million) in the third phase.

“The company will supply small pistols of 9mm and 12.7mm in the first phase to the UAE armed forces under a contract,” IGG vice chairman Fadil Saif al-Kaabi told reporters.

“There are plans to manufacture medium-sized pistols and bigger pistols in the second and third phases,” he said.

Technical support will be provided by South Africa, Finland and Bulgaria, Kaabi said, without giving further details.

“This is the first such manufacturing facility in the UAE. We plan to export to (other) Gulf countries at a later stage,” he said.