Moving at Speed

Barzan Holdings which is responsible for empowering the military capabilities of the Qatari Armed Forces, had rapidly evolved into global defence firm of note. At the ongoing Indo Defence, Barzan Holdings, is showcasing products specifically developed for the Indonesian market.

In an exclusive on-site interview with GBP Daily News, Rashid Al-Mohanadi, Senior Manager - International Markets, Barzan Holdings stated that the Group was committed to meeting the localization needs of Indonesia. “We don't have this one size fits all approach, like some of the other major players in the defense industry, we think we need local solutions for local problems and regional solutions for regional problems,” Al-Mohanadi emphasises.

Edited excerpts from the interview:

Barzan Holdings has rapidly grown into an international defence organization. Please elaborate on the importance of being present here in Indonesia and your decision to have such a large scale presence?

You did mention one important thing, which is that, in a very short time from an initial investment in 2017, we have become, what I call a full-fledged defense solution provider. Today we cover a range of portfolios from ammunition up to armored vehicles to integrated systems to potentially very soon, aerospace solutions. We have grown very quickly as we know, that we cannot always rely on the demand from our local end user, which is the Qatar Armed Forces and Police Forces.

To sustain we need to explore international markets and that’s the case with all international defense companies. Indonesia is a big market. One has to look at two things; you have to look at the defense and security challenges of the local end user, and then you have to look at their demand. It is a large market for us, it is the biggest country in Southeast Asia and like most countries in the world, they are looking to address their defence and security challenges and are looking to develop their defense capabilities. We look at Indonesia as maybe one of the most promising defense markets, not only in ASEAN and Southeast Asia, but in the world, because their challenges are very special. I think Indonesia would be a prime location for developing, the most advanced maritime domain awareness solutions.

What are some of the items being showcasing here?

We've been in Indonesia since 2019 and to show our commitment in developing the partnership with our Indonesian brothers, we've established a local entity, PT IDSD, for whom we have dedicated part of our stand here.

As a defence company, we don’t want to just regurgitate solutions developed for our other clients to our new clients. We have to develop localized solutions. So, if you go and visit the part of the booth where we have our Indonesian company, you will find solutions which are not available in the Qatari part of the of the group. An example is our advanced 120 mm mortar system that has fire control solutions, battle management solutions and shows that we are committed to localization.

As you know, the acquisition cycles for the defense industry are very long. There is the initial requirement, and then requirement being developed, and finally the solution being provided.  So here we are talking about 12 to 36 months from initial engagement and then providing the solution.

With Indonesia, we started in 2019, and I am happy to tell you that we have already delivered a lot of solutions related to supply of ammunition, protection gear, mortar systems, battle management systems, and we're looking forward to delivering even more systems in the coming years.

Have you been encouraged by the size and scale of the show?

I think with the new administration, there is a renewed focus on defense, and everybody in the industry is sensing that, including us. Of course, having all of the international players here makes the market more challenging, but we are up for this challenge. We think that this market is very fertile for new defense solutions, and this is maybe a personal conviction that companies like Barzan and, the other companies from the Middle East and from the Global South are better positioned to deliver to these markets, because we come from a similar background, being from the Global South, being from developing countries.

Please elaborate on the support Barzan Holdings has received from the State of Qatar, which has played a key role in its growth?

Barzan Holdings is a state owned company and we owe our success and growth to the State of Qatar for having provided us with the platform and support to grow very quickly. It is part of an imperative and directive by the State of Qatar to develop an efficient, self-sufficient and innovative defense industry.

We believe that we need to develop domestic solutions for our domestic defense and security needs, and the government support was very important in achieving this. It is important to note that this was not done through handouts but through contracts which we delivered on. If we had not delivered, we would not have grown so fast.

Would you say that your current manufacturing capability and scale put you in a good position to deliver on customer requirements quickly?

Alhamdulillah, we are not involved in any wars, and the Gulf region is fairly peaceful. So, our defense capacity is not as strained as the defense capacity in Europe. Because there is increased demand in the Global South, like Indonesia and other economies in the Global South, I think Barzan and generally the Gulf region is developing a defense industry. We are all very well positioned due to the support of our governments, through their relationship with buyer nations, and our own capacity to deliver defense solutions to the global south.

Please elaborate on the partnership approach taken to Barzan’s defence relationships with its customers?

At Barzan Holdings, we are very willing to have dialog between us to understand their needs and then position ourselves to deliver on these needs. Most of the solutions that we are displaying here at our IDST stand were developed in Indonesia for the Indonesian defense industry. The mortar system is not used in Qatar, because our needs are different. We don't have this one size fits all approach, like some of the other major players in the defense industry, we think we need local solutions for local problems and regional solutions for regional problems.

What is your outlook for Indonesia and the region in the years to come from a Barzan Holdings perspective?

We will expand in the region. We are expanding, you know, not only in Indonesia, but generally in ASEAN. I think the region offers a lot. The region has very developed industries. So, it is not a one way street. It's not us providing defense solutions to them, but I think we can develop an ecosystem where defense solution providers like ourselves rely on the local capabilities to deliver defense solutions for the end users