German Gun Deal: Haenel and the UAE Government

2007 the German Company Merkel Jagd- und Sportwaffen GmbH was sold to Caracal International LLC, HQ in Abu Dhabi, United Arabic Emirates. Part of this corporation is the C. G. Haenel GmbH. The discussion that time was, if the deal should been blocked by the government because of national security interest. Haenel GmbH is a traditional manufacturer of weapons for military units. It builts artillery and guns for the German army in WWII and the „Volksarmee“ of the GDR. In 2007 the German government and the regulation institutions say the deal is legal. Haenel has no technology which is relevant to the national security. Haenel GmbH develops and sells also weapons for snipers. In 2010 the Haenel Group invents a new mechanism that makes automatic weapons fast in shooting and the sequence of the shots more secure.

Now 120.000 pieces of this weapons are subject of a deal of the German Ministry of Defence and C. G. Haenel GmbH, which presents itself as a German manufacurer. But reality is that the German government wants to make a deal with a company that deveops and produces weapons in Germany but it‘s owner is the United Arabic Emirates ( UAE ). Caracal International LLC is part of the state owned EDGE Group, the owner of Haenel GmbH are the UAE.

And the discussion is now if there is a problem of national security, if the UAE are the supplier of the German army. The islamic culture of the UAE is very different from the culture of Germany. The UAE is no NATO member state. What, if the corporate leader, the government of the UAE, will set a weapon embargo or sanctions against Germany. Is the supply of parts and weapons secure?

The last days the German government has found a smart solution. Heckler & Koch, another German weapon producer, found a violation of patent law. This gives the German government the possibility for new negotiations. But Haenel say, if the investigation doesn‘t buttress the allegation Heanel GmbH would insist on the 250 mio€ deal.

But why does the German government assent to a deal of a traditional German military supplier?