Johannesburg - South African defence industry entity Avitronics has been awarded an export contract in excess of R60m from the United Arab Emirates (UAE) armed forces, it emerged on Wednesday during the 7th International Defence Exhibition 2005 (IDEX 2005)which is being held in Abu Dhabi.

The five-day exhibition, ending on Thursday, drew 905 companies - including South Africa's Denel - from 50 countries.

The event is one of the world's largest arms expos to display advanced weaponry and military technologies.

Avitronics is a joint venture 51%-held by Grintek and 49%-owned by Sweden's Saab.

Avitronics specialises in the design, development and production of self-protection Electronic Warfare systems and associated products for air, sea and land based applications.

This is the second major contract awarded to the company by the UAE in recent years and has been described as the result of continued, excellent relations between the UAE, Avitronics and Agusta-Westland of Italy, who acts as the main systems integrator.

AFP reports the UAE said on Tuesday it had concluded $840m in deals during the first three days of the major arms exhibition it is hosting in the shadow of a growing terror threat in the region.

The assassination of former Lebanese prime minister Rafiq Hariri in a massive bomb blast in Beirut on Monday was the latest incident compounding security concerns in the Gulf.

"I think everybody for the last three years (in the aftermath of the September 11 2001 attacks on the United States), has been focusing on terrorism defense equipment," UAE military procurement chief Brigadier Obaid al-Ketbi told reporters on Tuesday.

Ketbi said the UAE had concluded contracts worth 3.08bn dirhams ($840m) since the exhibition opened in Abu Dhabi on Sunday.

The biggest order announced on Tuesday was for eight AB139 Italian-made helicopters worth $83.7m.

Ketbi said Bell Agusta Aerospace won the deal in the face of competition from France's Eurocopter, which had offered its EC155.

The helicopters, manufactured in Italy under a joint venture between US firm Bell and Italian arms maker Augusta, will have a multi-role function in the Emirati armed forces, said Ketbi, spokesperson for IDEX 2005.

The UAE also signed a $48m contract with Switzerland's Inovex Simulation and Training for the modernisation of the training system of some army units, a deal for which France's Thales had also been vying.

German companies have so far walked away with the two biggest deals.

Rheinmetall Landsysteme on Monday clinched a $209m deal to supply NBC Fox (ABC Fuchs in German) armored reconnaissance vehicles to the UAE.

On Sunday, Rohde and Schwarz clinched a contract to upgrade the Emirati army's communications system at a cost of $144m.

US arms makers have so far failed to secure any big contracts similar to the ones won by European counterparts at the arms fair, which ends Thursday.

With acknowledgements to I-Net Bridge, AFP and Finance24.