UAE Military Deals: UAE has signed military and defence contracts worth more than AED23 billion ($6.3 billion) this week, marking the end of the Middle East’s largest defence exhibition, the International Defence Exhibition (Idex), held in Abu Dhabi. These deals highlight the UAE’s efforts to strengthen its military capabilities, expand its supplier base beyond traditional partners like the US, and boost local defence manufacturing.
While the UAE did not sign any contracts with Israel, Israeli defence companies were among the many exhibitors at Idex looking to showcase their products. The UAE and Israel have had peace agreements since 2020, opening doors for potential future collaborations.
American companies, such as Lockheed Martin, secured significant deals, including a AED765 million contract for technical support and spare parts for Black Hawk helicopters. The UAE also signed contracts with companies from Turkey, Sweden, Germany, Finland, Switzerland, and Italy, showing its willingness to diversify its defence partnerships, AGBI reported.
Around 25% of the total value of the 40 contracts announced at Idex went to UAE-based companies. This reflects the country’s push to develop its own defence manufacturing capabilities. Leonardo Mazzucco, a defence analyst at the Arab Gulf States Institute in Washington, said, “Over the past 10 years, Abu Dhabi and Riyadh have shown a growing interest in building their ability to manufacture more advanced defence products.”
In the past UAE has relied heavily on the US for its military equipment, with 56% of its arms imports between 2000 and 2019 coming from the US. However, the UAE is now looking to reduce this dependence by encouraging local production and partnering with other countries.
Indian, Chinese, and Russian defence companies also participated in Idex. For example India’s Kalyani Strategic Systems Ltd, which specialises in artillery systems and ammunition, is setting up a regional office in Abu Dhabi. Amit Kalyani, the company’s vice chairman, said, “We see the UAE as a very important step for our global ambitions,” praising the country’s ease of doing business and strong logistics infrastructure.
The UAE’s Operation 300 billion strategy aims to attract investment into local manufacturing, while Saudi Arabia’s Vision 2030 plans to localise 50% of its defence spending by 2030. Mazzucco said “Traditionally, the defence industries of the UAE and Saudi Arabia were limited to basic products like maintenance, repair, and assembly. Now, they are working with partners who can transfer advanced military technology, creating a business-friendly environment that attracts foreign companies to produce weapons in the Gulf.”
The current war in Ukraine, where drones are being used extensively, and recent missile attacks in the Middle East have changed how countries perceive threats. Boaz Levy, CEO of Israel Aerospace Industries, noted, “We see more demand for our interceptors, which are designed to counter ballistic missiles, cruise missiles, and drones.” Israel’s defence exports reached a record $12.5 billion in 2022, with about $3 billion coming from deals with Arab nations, including the UAE, Bahrain, Morocco, and Sudan.
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Mazzucco added, “The UAE and Saudi Arabia are likely to use the growing interest from Israel and India in their defence markets to secure technology-transfer deals. At the same time, they need to ensure that new systems work well with their existing Western-made weapons.”
In another development, Edge, a UAE defence company, is expanding its presence in Brazil. Edge’s Brazilian unit, Siatt, will supply advanced Mansup anti-ship missiles to the Brazilian navy. Another Edge subsidiary, Condor, signed a contract worth 7 million Brazilian reais ($1.2 million) with Brazil’s Senappen to upgrade prison security infrastructure. Edge has also opened an office in Brazil as part of its plans to grow in the region and enter new export markets, including Argentina and Paraguay.
The UAE’s latest defence deals and partnerships show its commitment to strengthening its military capabilities, supporting local manufacturing, and building relationships with a diverse range of global suppliers. These efforts are part of a broader strategy to ensure the country’s security and maintain its position as a key player in the global defence industry.
