Arab Organization for Industrialization

The Arab Organization for Industrialization (AOI) (Arabic: الهيئة العربية للتصنيع‎‎) is an Egypt-based Arab military organisation established in 1975 by Egypt, Qatar, Saudi Arabia and the United Arab Emirates (UAE) to supervise the collective development of the Arab defence industry. Following a gradual deterioration in relations between the AOI member-states, Egypt became sole owner of AOI in 1993. As well as meeting the requirements of the Egyptian military, AOI directs spare capacity to civilian programmes, including civilian transport and sanitation equipment, and has stated its intention of entering the wind power sector.

Initially an institution of pan-Arabism, Saudi Arabia and the United Arab Emirates returned their shares in AOI, valued at US$1.8 billion, to Egypt in 1993, leaving AOI wholly owned by the Egypt. AOI has approximately 16,000 employees, out of which 1,250 are engineers. AOI fully owns 10 factories and shares in 2 joint-ventures, besides the Arab Institute for Advanced Technology.

AOI was established by its four member-states - Egypt, Qatar, Saudi Arabia and the UAE - in response to the threat posed by the advanced Israeli defence industry. The initial capitalisation of AOI was USD 1 billion, contributed in equal part by the four member-states, although with the understanding AOI would be based in Egypt.

In 1978, AOI and Westland Helicopters, a British aerospace company, established the Arab British Helicopter Company as a joint venture, but a year later AOI announced the company's liquidation. In ensuing arbitration, the International Chamber of Commerce made an award, on grounds of breach of the principles of natural law and good faith, in favour of Westland Helicopters and against AOI's four member-states. This award was later annulled by the Court of Justice of Geneva, which annulment was upheld by the Swiss Federal Supreme Court, on grounds that the arbitrators had jurisdiction over AOI but not over the organisation's member-states.