Defense Industries System (DIS)
Sudanese army's arms-making and procurement conglomerate (~$2B revenue); US-sanctioned June 2023; bought Iranian-made drones via fronts
Agency· Sudan · in the record since Jun 2023
7links
—in stakes shown
1open stories
0 of 1responded
Connections · 7
● confirmed by a primary document · ○ reported
● confirmed by a primary document · ○ reported
Ownership
●
Arms company Sudan Master Technology is a shareholder in multiple DIS companies, according to OFAC, which sanctioned it alongside DIS.
1 source
- Treasury Sanctions Military-Affiliated Companies Fueling Both Sides of the Conflict in SudanDocumentSudan Master Technology
Sudan Master Technology (SMT), an arms company, is a shareholder in multiple Defense Industries System companies and a major shareholder in three companies involved producing weapons and vehicles for the SAF.
●
Zadna International, once one of DIS's top-three revenue earners, was formerly a DIS subsidiary before being moved under an army social-security fund; OFAC sanctioned it in January 2024.
1 source
- Treasury Targets Entities Funding the Conflict in SudanDocumentFunding Conflict in Sudan
Called a vehicle for military money-laundering, Zadna had been one of the top-three revenue earners for the DIS, and continues its operations — and its funding of the SAF — to the present.
Contracts
●
DIS is the primary procurement arm of the Sudanese Armed Forces.
1 source
- U.S. Department of the Treasury (OFAC press release)DocumentSAF Weapons supplier
Ahmad Abdalla (Abdalla) is a Sudanese-Ukrainian national and an official of the Defense Industries System (DIS), the primary procurement arm of the SAF.
Supplies & exports
●
DIS official Ahmad Abdalla coordinated the purchase of Iranian-made drones from an Azerbaijani defense company for shipment to Sudan, according to OFAC.
1 source
- U.S. Department of the Treasury (OFAC press release)DocumentSAF Weapons supplier
Notably, Abdalla coordinated the acquisition of Iranian-made UAVs from an Azerbaijani defense company for shipment to Sudan.
Money
●
The US Treasury says the army's Defense Industries System hides its subsidiaries' ownership to obtain favorable letters of credit from the central bank, then defaults on the loans.
1 source
- Treasury Sanctions Military-Affiliated Companies Fueling Both Sides of the Conflict in SudanDocumentDefense Industries System
DIS manufactures a range of small arms, conventional weapons, ammunition, and military vehicles for the SAF, and uses a complex system to hide its ownership of these subsidiaries and to obtain favorable letters of credit from the Sudan Central Bank. Defense Industries System not only defaults on the loans obtained under these letters of credit but also uses these favorable funds guarantees to compete unfairly with civilian businesses that do not enjoy such favorable financial terms.
Figures
●
The Defense Industries System, Sudan's largest defense enterprise, generates an estimated $2 billion in revenue through hundreds of subsidiaries.$2B
1 source
- Treasury Sanctions Military-Affiliated Companies Fueling Both Sides of the Conflict in SudanDocumentDefense Industries System
Defense Industries System is Sudan’s largest defense enterprise, generating an estimated $2 billion in revenue via hundreds of subsidiaries across various sectors of Sudan’s economy.
●
OFAC sanctioned the Defense Industries System under Executive Order 14098 on June 1, 2023.
1 source
- Treasury Sanctions Military-Affiliated Companies Fueling Both Sides of the Conflict in SudanDocumentDefense Industries System
OFAC designated Defense Industries System pursuant to E.O. 14098 for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in actions or policies that threaten the peace, security, or stability of Sudan.