Strategic Overview
The United Arab Emirates maintains one of the most capable and well-funded military establishments in the Middle East, with defence spending consistently ranking among the highest in the world as a percentage of GDP. The sector has evolved beyond conventional procurement into a strategic industrial policy domain, with domestic defence manufacturing, advanced cybersecurity capabilities, and a defence export ambition that positions the UAE as both a consumer and producer of military technology. Annual defence expenditure exceeds $25 billion, representing approximately 5.6 percent of GDP — a figure that reflects both the country’s regional security environment and its commitment to building sovereign defence industrial capacity.
The UAE’s defence posture is shaped by its geographic position at the mouth of the Persian Gulf, its proximity to Iran, its role in regional coalitions, and its strategic relationships with Western powers. The country operates advanced Western military platforms, including F-16 fighter aircraft, Leclerc main battle tanks, and a range of naval vessels, while simultaneously building domestic alternatives and complementary systems through its national defence industrial base.
EDGE Group
EDGE Group, established in 2019 through the consolidation of more than 25 existing defence entities, has rapidly become one of the most significant defence conglomerates outside the traditional Western and Chinese defence industrial bases. With revenues exceeding $5 billion, EDGE ranks among the top 25 defence companies globally and has stated ambitions to reach the top 15. The company is headquartered in Abu Dhabi and operates across five business clusters: platforms and systems, missiles and weapons, cyber defence, electronic warfare and intelligence, and mission support.
EDGE’s portfolio spans unmanned aerial vehicles, precision-guided munitions, armoured vehicles, naval vessels, small arms, and advanced electronic warfare systems. The company has pursued an aggressive acquisition and partnership strategy, acquiring international defence technology firms and forming joint ventures with established defence primes to accelerate capability development. Its unmanned systems programme, including the development of loitering munitions and autonomous platforms, has attracted particular international attention.
The strategic rationale behind EDGE is clear: reduce dependence on foreign defence suppliers, capture more value from the UAE’s substantial defence procurement budget domestically, and develop export products that generate revenue and strategic influence. EDGE has secured export contracts in multiple markets, demonstrating that the UAE’s defence industrial products are commercially competitive.
Tawazun Economic Council
The Tawazun Economic Council serves as the offset authority for the UAE’s defence procurement. Through the Tawazun programme, international defence contractors awarded UAE contracts are required to reinvest a percentage of the contract value into the UAE economy. These offset obligations are directed toward building industrial capabilities in defence, aerospace, technology, and other strategic sectors.
Tawazun has been instrumental in attracting foreign defence technology investment to the UAE and in establishing joint ventures between international defence companies and domestic entities. The programme has facilitated the development of manufacturing facilities, research centres, and training programmes that contribute to the broader goal of defence self-sufficiency. Tawazun’s portfolio includes investments in ammunition manufacturing, composite materials, and military vehicle maintenance, repair, and overhaul operations.
IDEX and NAVDEX
The International Defence Exhibition and Conference (IDEX) and the Naval Defence and Maritime Security Exhibition (NAVDEX), held biennially in Abu Dhabi, constitute one of the world’s largest and most commercially significant defence trade events. IDEX/NAVDEX serves as a platform for defence contract announcements, capability demonstrations, and diplomatic engagement among defence establishments, manufacturers, and government procurement agencies from across the globe.
The exhibitions consistently generate tens of billions of dollars in announced defence contracts and attract delegations from over 100 countries. For the UAE, IDEX/NAVDEX serves a dual function: it showcases the country’s growing domestic defence capabilities to potential export customers, and it provides a venue for the UAE armed forces to evaluate and procure systems from international suppliers. The event reinforces Abu Dhabi’s position as the Middle East’s primary defence trade hub.
Strategic Military Partnerships
The UAE maintains defence cooperation agreements with a broad range of international partners, with the United States, France, and South Korea occupying the most prominent positions.
The US-UAE defence relationship is the deepest and most extensive, encompassing arms sales, military exercises, intelligence sharing, and the basing of US military assets in the UAE. The Al Dhafra Air Base near Abu Dhabi hosts US Air Force and other coalition assets. France has a dedicated military base in Abu Dhabi, the first permanent French military installation in the Gulf, reflecting a defence relationship anchored in major equipment sales including the Leclerc tank and Mirage fighter aircraft.
South Korea has emerged as an increasingly important defence partner, with the UAE procuring South Korean military systems including the Barakah nuclear programme’s construction (involving Korean-designed APR-1400 reactors) and exploring collaboration on advanced military platforms. The diversification of defence partnerships beyond traditional Western suppliers reflects a strategic hedging approach.
Cybersecurity
Cybersecurity has become a priority domain within the UAE’s broader security architecture. The country faces a sophisticated threat environment, with critical infrastructure including oil and gas operations, financial systems, and government networks subject to persistent cyber threats. The UAE Cyber Security Council, established at the federal level, coordinates national cybersecurity strategy, incident response, and capability development.
EDGE Group’s cyber defence cluster develops offensive and defensive cyber capabilities, while the broader ecosystem includes private cybersecurity firms, government agencies, and specialised training programmes. The UAE has hosted the GISEC cybersecurity conference annually and is investing in cybersecurity talent development through academic programmes and professional certifications.
Outlook Under We the UAE 2031
The defence and security sector under We the UAE 2031 is oriented toward sovereign capability. The federation intends to produce more of what it consumes in defence, export what it can, and maintain the strategic partnerships that provide access to advanced technologies not yet replicable domestically. EDGE Group’s growth trajectory, the Tawazun offset programme, and sustained high levels of defence spending collectively indicate that the sector will remain a significant component of the UAE’s industrial and strategic landscape. The cybersecurity dimension adds an increasingly important layer, reflecting the reality that national security in the 2030s is as much about code as it is about conventional military hardware.