1.   Compounding the problem, the report said, is government funding of offset deals.

2.   Offset deals come in many forms.

3.   The French Fighter Investment and Cooperation Program will promote offset deals in the Emirates.

4.   Under so-called offset deals, companies win contracts on condition that they make investments in the buying country.

5.   A Thomson spokesman also refused to disclose details of the offset deal under which the garment project was created.

6.   Another French firm, Thomson-CSF, is also expected to announce the launching of a garment factory in line with an offset deal with the UAE.

7.   At an international offset conference in Abu Dhabi last December, six separate projects were announced under offset deals with French and US firms.

8.   Chase Manhatten Bank also announced it would press ahead with plans to create a one-billion-dollar company to support offset deals.