ImageSat in Abu Dhabi talks - report

The dollar value is low, but the significance is great.

"Defense News" reports that Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) subsidiary ImageSat International NV is in talks with the government of United Arab Emirates (UAE) member state Abu Dhabi to provide access to the Eros B commercial high-resolution imaging satellite, launched in 2006. Abu Dhabi already has access to the Eros A satellite, whose operational life will end in 2010.

"Defense News" estimates the value of the deal at less than $20 million a year, which is considered fairly low. However, the significance of the deal goes well beyond its financial aspects. Israel and Abu Dhabi have no diplomatic relations, and a deal of this kind suggests a move to closer relations between Israel and the Arab emirate, both of whom feel threatened by Iran. The deal also fits in with US strategy for closer ties between moderate governments in the Middle East.

A few days ago, UAE member Dubai made headlines when it refused to allow Israeli tennis player Shahar Peer entry to participate in the Dubai Classic.

"Defense News" quotes a space industry insider as saying, "Even in the best of times, that program has been hush-hush. So obviously now, after Gaza, when even a harmless tennis match becomes super-sensitive, nobody's going to talk about it."

ImageSat and Israeli officials declined to comment on the report.

Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018