Defence Budget Overview
The UAE’s estimated military expenditure reached approximately USD 24.8 billion in 2024, representing roughly 4.9% of GDP. This places the UAE among the highest per capita military spenders globally and positions it as the third-largest defence market in the Middle East, behind Saudi Arabia and Israel.
Defence Spending Trend
| Year | Defence Spending (USD bn) | Share of GDP (%) | Per Capita (USD) |
|---|
| 2018 | 19.6 | 4.7 | 2,054 |
| 2020 | 17.8 | 5.3 | 1,918 |
| 2022 | 22.4 | 4.7 | 2,393 |
| 2023 | 23.6 | 4.8 | 2,498 |
| 2024 | 24.8 | 4.9 | 2,616 |
Regional Defence Spending Comparison
| Country | Defence Spending (USD bn) | GDP Share (%) |
|---|
| Saudi Arabia | 68.4 | 6.2 |
| Israel | 27.5 | 5.3 |
| UAE | 24.8 | 4.9 |
| Turkey | 16.8 | 1.8 |
| Iraq | 12.4 | 4.6 |
| Qatar | 10.2 | 4.8 |
| Kuwait | 8.6 | 4.8 |
| Oman | 5.8 | 5.2 |
Major Procurement Programmes
| Programme | Supplier Country | Estimated Value (USD bn) | Status |
|---|
| F-16 Block 70/72 fighters | United States | 3.0 | In delivery |
| Patriot PAC-3 missile defence | United States | 2.0 | Operational |
| THAAD missile defence | United States | 3.5 | Operational |
| Leclerc tank modernisation | France | 1.2 | Ongoing |
| Baynunah-class corvettes | UAE/France | 2.8 | Delivered |
| Predator/Reaper UAV fleet | United States | 1.4 | Operational |
| EDGE Group indigenous systems | UAE | 4.2 | Various stages |
Domestic Defence Industry
The UAE has invested heavily in building a domestic defence industrial base, anchored by EDGE Group, which was formed in 2019 through the consolidation of over 25 defence entities. EDGE ranked among the top 25 global defence companies by revenue in 2024.
| EDGE Group Metric | Value (2024) |
|---|
| Revenue (USD bn) | 6.8 |
| Employees | 18,000+ |
| Subsidiaries | 35+ |
| Export customers | 40+ countries |
| Global defence rank | 22nd |
Defence Spending Composition
| Category | Share of Budget (%) |
|---|
| Equipment procurement | 38.4 |
| Personnel costs | 28.2 |
| Operations & maintenance | 18.6 |
| R&D and innovation | 8.4 |
| Infrastructure | 6.4 |
Outlook
Defence spending is expected to remain at 4.5-5.0% of GDP through the medium term, with increasing emphasis on domestic production, unmanned systems, cyber capabilities, and space-based defence assets. The EDGE Group’s export strategy and joint venture programmes with international partners are designed to offset procurement costs through technology transfer and revenue diversification.