Introduction
The United Arab Emirates has made significant strides in the defense industry sector in recent years, driven by the leadership’s commitment to position the country as a regional and global hub for advanced defense manufacturing. This strategic direction has been reflected in substantial investments aimed at localizing cutting-edge technologies, forging effective partnerships with leading global defense companies, and enhancing domestic manufacturing capabilities.
The UAE has also established a comprehensive framework to support the defense and security industries, underpinned by a clear national vision, a flexible regulatory environment that encourages investment,([1]( and the hosting of major defense exhibitions to promote locally produced systems. Furthermore, there has been a strong focus on nurturing national human capital through training and qualification programs designed to empower Emiratis to operate, maintain, and develop defense equipment locally.
The UAE’s Strategy for Localizing Defense Industries
From January 25-29, 2025, the UAE hosted the International Defence Exhibition (IDEX), one of the largest defense trade shows in the Middle East and one of the most prominent globally. The 2025 edition of IDEX ([2]( featured 1,565 companies from 65 countries and 41 national pavilions, including 213 companies (nearly 16% of the total) from the UAE, in line with Abu Dhabi’s strategy to localize its defense industries. Emirati defense companies are distinguished by their adherence to the highest standards of quality, which has earned their products international recognition and growing demand at regional and global defense and security exhibitions.
Both IDEX and the Naval Defence Exhibition (NAVDEX) are held biennially in Abu Dhabi and are among the most prominent defense exhibitions in the world.([3]) During the 2023 exhibitions, the UAE Armed Forces signed 86 contracts worth US$6.36 billion, up from US$5.7 billion in 2021.
The UAE, particularly Abu Dhabi, is investing heavily([4]) in the UAE’s defense sector to enhance the country’s strategic interests and diversify its economy as part of its efforts to localize defense industries. A significant public investment is allocated to the EDGE Group, established in 2019 to integrate more than 25 entities, including the Emirates Defence Industries Company (EDIC), the Emirates Advanced Investments Group (EAIG), and Tawazun Holding. The EDGE Group employs approximately 12,000 people across five key sectors — platforms and systems, missiles and weapons, cybersecurity, electronic warfare and intelligence, and mission support — and its revenues are now estimated at US$5 billion,([5]) making it one of the top 25 military suppliers worldwide SPIRI.
The UAE is also focused on equipping its citizens with the knowledge and expertise needed to strengthen domestic defense manufacturing capabilities.([6])In February 2025, the Tawazun Economic Council unveiled a strategic initiative aimed at enhancing the national naval combat management system. This initiative is part of the Council’s broader strategy to transfer technology and know-how in this critical area, under a strategic partnership agreement signed within the framework of the Economic Offset Program with Naval Group and Marakeb Technologies. This effort builds on a landmark agreement signed on December 19, 2023, between the Tawazun Council, the French Naval Group([7]), and Marakeb Technologies that aims to strengthen the UAE’s defense sector and equip local talent with specialized skills in naval combat system.
The key question remains: How does the UAE’s participation in the IDEX 2025 exhibition differ from its participation in the 2023 edition?
The following table outlines both the significant and subtle differences between the UAE’s participation in the 2023 and 2025 editions of the exhibition:
The UAE also aspires to expand its presence in the global defense industry by exporting advanced military systems to countries with significant influence in security and political affairs. In this context, EDGE signed([8]) an agreement with Hungary in January 2025, under which the UAE will supply the Hungarian army with CARACAL sniper rifles. This marks the first time that EDGE provides such weapons to a NATO member state.
Image designed by the researcher for Rabdan Security & Defence Institute, Abu Dhabi. Image content source: EDGE Group, UAE.
In March 2025, EDGE Group signed([9]) an agreement to establish a new joint venture with Spain’s Indra Sistemas, a global leader in information technology and defense systems that operates in over 140 countries. The agreement includes plans for the production of next-generation radar systems to be headquartered in Abu Dhabi. The venture is expected to receive orders for approximately 300 advanced radar units and is scheduled to be granted exclusive rights to handle current and future orders received by Indra from countries outside the NATO and European Union blocs.
The Regional and International Positioning of the UAE’s Defense Industry: Indicators of Growth
In support of the Abu Dhabi Vision 2030, the government is pursuing strategic partnerships that contribute to the development of domestic defense manufacturing capabilities. The broader vision of the UAE is for these projects to not only meet local needs but also serve global markets. The UAE exported([10]) military weapons worth US$3.67 million in 2023, ranking it 31st among 86 countries, with Indonesia buying US$3.66 million of the total in 2023. between 2018 and 2022, the UAE accounted for approximately 28% of Egypt’s arms imports, 27% of Jordan’s, and 15% of Algeria’s.)[11](
According to the Stockholm International Peace Research Institute (SIPRI)([12]), the UAE exported military equipment worth $191 million in 2020, marking the highest level of exports in the past decade. This was followed by exports valued at $57 million in 2021, before dropping sharply to $12 million in 2022,a decline of approximately 79% compared to 2021. The following table outlines the value of the UAE’s military equipment exports from 2015 to 2022.
The UAE is also adapting to technological changes, and is developing indigenous solutions for modern warfare. UAE-based companies have also developed([13]) a diverse range of defense and security systems, including EDGE’s multi-role “Nimr” armored vehicles, the “Al-Wahsh” armored vehicles with advanced combat capabilities, as well as sophisticated drones for reconnaissance, surveillance, and tactical missions. Additionally, they have developed precision-guided missile systems with high accuracy. EDGE has produced the “Advanced Concepts”([14]) system, a counter-drone solution designed to detect and neutralize unmanned aerial threats. The system employs a sophisticated radar to identify potential threats and features two response mechanisms; the first is a propeller-driven electric interceptor designed to engage low-altitude targets up to 7,000 feet, while the second uses a turbine engine to counter high-altitude threats at elevations reaching 20,000 feet.
EDGE received orders exceeding a total value of US$5 billion in 2022, with global exports accounting for 35%. During the first two days of the IDEX 2023 exhibition, the group announced([15]) new orders for products and solutions valued at over 10 billion dirhams, including international exports. In 2024, the group signed export contracts worth $2.3 billion,([16]) and expects to double this in 2025.
During IDEX 2025,([17])180 national companies participated as exhibitors, representing 16% of the total, and the country signed three contracts supporting the development of national military and defense industries. One of the standout products showcased by EDGE at IDEX 2025 was the “Havoc 8x8 (RCV)” robotic combat vehicle.([18]) This vehicle was developed with the assistance of Estonian company Milrem Robotics, known for its hybrid modular tracked infantry system (THeMIS), a ground-based unmanned vehicle (UGV) that was deployed in Mali as part of France’s Operation Barkhane against jihadists. In 2023, EDGE acquired a majority stake in Milrem Robotics, headquartered in Tallinn.
Image content designed by the researcher for Rabdan Security & Defence Institute, Abu Dhabi. Image content source: EDGE Group, UAE.
The company has also enhanced([19]) its capabilities in the field of Maintenance, Repair, and Overhaul (MRO). One of EDGE’s subsidiaries, Nimr, offers a variety of military vehicles, including the Ajban, Hafit, and Jais models, that are used by the armed forces of Algeria, Lebanon, Jordan, and Saudi Arabia.
The UAE has become the regional([20]) leader in the defense sector, surpassing Egypt, which was previously considered the largest industrial power in the Arab world, and has become a model for Saudi Arabia, which is also developing its own domestic defense industry and indigenous knowledge. In February 2021, UAE-based Nimr, a subsidiary of EDGE specializing in defense industries, announced ([21]) plans to establish a manufacturing facility in Saudi Arabia. This facility will leverage the UAE’s investments in designing and developing military combat vehicles, while also benefiting from Saudi Arabia’s relatively large local workforce to manufacture and maintain the equipment necessary to meet the needs of both the UAE and Saudi Arabia.
Content designed by the researcher for Rabdan Security & Defence institute, Abu Dhabi. Image content source: The Emirates Defense Companies Council.
Perspectives and Challenges of Defense and Military Industries in the UAE
His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, emphasized that the development of national defense industries is an ongoing strategic goal and part of the UAE’s comprehensive developmental vision when he visited IDEX in 2025.([22]) He also highlighted the significant progress the country has made in this area, but despite the significant progress the UAE has made in building a strong defense industrial base, there are challenges facing this sector in the future.
Continued large-scale investments in research and development are required to keep pace with rapid changes in military technologies, especially in areas such as artificial intelligence, unmanned aerial vehicles (UAVs), electronic warfare systems, and competition from rising regional powers like Turkey and emerging countries in Eastern Europe.
There is also a need to intensify ongoing efforts to continuously qualify and train national workforce in fields such as engineering, military research, and heavy industries to ensure the sustainability of this sector and the achievement of sustainable technological progress. Furthermore, it is essential to strengthen collaboration with local and international universities and research centers to create an environment conducive to military innovation.
Recommendations
Decision-makers in the UAE closely monitor the global defense industry market and actively pursue additional agreements with international powers to promote the export of UAE-manufactured military equipment. They also seek to explore emerging markets in Africa, Asia, and Latin America to broaden export horizons alongside maintaining focus on Western markets. Efforts are underway to establish a balanced approach in long-term strategic alliances with leading global defense companies, whether in the U.S., Russia, or China, aiming to enhance technology transfer, technical training, and local capacity building.
Furthermore, the following recommendations are proposed;
Establish a clear regulatory framework for UAE arms exports that considers regional security concerns and safeguards the UAE’s reputation as a responsible actor in the international system.
Prioritize the localization of strategically important industries such as radars, command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, counter-drone technologies, and invest in military artificial intelligence to ensure operational readiness and autonomy.
Strengthen technical training for Emirati nationals by continuously enhancing skills through ongoing technology transfer and collaboration with international partners.
These measures will enable the UAE’s defense industries to meet national requirements amid the current geopolitical and military challenges in the region.
Disclaimer:
The views and opinions expressed in the INSIGHTS publication series are those of the individual contributors and do not necessarily reflect the official policy or position of Rabdan Security & Defense Institute, its affiliated organizations, or any government entity. The content published is intended for informational purposes and reflects the personal perspectives of the authors on various security and defence-related topics.
References
[1]- Emirates News Agency. UAE: Advanced Defense Industries with Competitive Capabilities. WAM. February 18, 2025, link
[2] - IDEX UAE Website 2025: The International Defence Exhibition and Conference. Jan 29, 2025. Link
[3]- International Trade Administration, U.S. Department of Commerce “United Arab Emirates – Defense” Nov 15, 2023. Link
[4] - International Trade Administration, U.S. Department of Commerce “United Arab Emirates - Defense.” Nov 16, 2023. Link
[5] - Sky News Arabia. “EDGE’s annual revenues are $5 billion, 20% of which are exports.” February 18, 2025. Link
[6] - Emirates News Agency (WAM), “Tawazun Council Supports Technological Transformation Efforts in the National Naval Combat Management System,” February 17, 2025. Link
[7] -Defense Industry, “Tawazun Council strengthens UAE’s naval capabilities through strategic technology transfer.” February 17, 2025. Link
[8] - Defense Mirror, “Edge Signs Contract with Hungary to Supply CARACAL Sniper Rifles,” Feb 1, 2025. Link
[9] - Emirates News Agency (WAM), “EDGE Group partners with Spain’s technology leader Indra to enter global advanced radar domain”. March 4, 2024. Link
[10] -Observatory of Economic Complexity, “Military Weapons in United Arab Emirates”. 2023. Link
[11] - Politics Today. Report: Global zeal for arms increased between 2018-2022. Link
[12] -The Global Economy .UAE Arms exports. Link
[13] - Emirates News Agency (WAM), “UAE: Advanced Defense Industries with Global Competitive Capabilities.” February 18, 2025. Link
[14]- Edge Group, “Enabling a Secure Future in Air and Space”, Link
[15] -Emirates Today, “UAE Companies Meeting Global Market Demands for Defense Industries.” February 22, 2023. Link
[16] -The National, “UAE’s Edge expects to match 2024 revenue mark of $5bn this year.” February 18, 2025. Link
[17] - Emirates News Agency , “IDEX and NAVDEX have solidified the UAE’s position on the map of advanced defense industries.” February 19, 2023. Link
[18] - Zabam, “Milrem Robotics prezentuje na IDEX 2025 bezzałogowy wóz bojowy HAVOC 8×8.” February 21, 2025. Link
[19] - Stimson center, “UAE Transitions From Arms Importer to Competitor With the West.” February 26, 2025. Link
[20] - ibid.
[21] - Deloitte, GCC – “Creation of localized defense industry.” Feb 21,2022. Link
[22] -The Gulf, “Mohammed bin Zayed: Our Defense Industries Are Witnessing Remarkable Progress.” February 17, 2025. Link
