Editor’s Note: Robert Czulda specializes in the military/defense industries of Middle Eastern states and has written for Stimson in the past about Iranian arms purchases from Russia and Saudi weapons manufacturing.
By Barbara Slavin, Distinguished Fellow, Middle East Perspectives
Last week, the United Arab Emirates hosted the largest defense trade fair in the Middle East and one of the largest in the world.
The International Defense Exhibition (IDEX) 2025 featured 1,565 companies from 65 countries, with 41 national pavilions. Notably, 213 firms from the UAE participated, accounting for nearly 16 percent of all exhibitors.
For many years, international corporations treated IDEX and the accompanying Naval Defense and Maritime Security Exhibition (NAVDEX) as an opportunity to showcase their products, which were then purchased for billions of dollars by the wealthy Arab monarchies of the Persian Gulf. This was an extremely lucrative business for Western companies. However, this era is gradually coming to an end. U.S. and European firms now face growing competition from countries such as Turkey, China, and South Korea and traditional buyers are also developing their own capabilities.
Not long ago, the UAE spent billions of dollars on “off-the-shelf” products from around the world. According to the Stockholm International Peace Research Institute (SIPRI), the UAE was the world’s ninth-largest defense importer between 2016 and 2020, with the U.S. as its primary supplier, accounting for 64 percent of imports. With an annual defense budget of more than $22 billion, the Emirates has shifted its priorities toward research and development, establishing its own industrial and technological base, and building domestic capabilities for equipment maintenance, repairs, and modernization. Importantly, the UAE has also started offering products and services for export. According to official data, the EDGE group, an Emirati defense conglomerate established in 2019, ended 2024 with export contracts worth $2.3 billion, a figure expected to more than double in 2025.
EDGE is a symbol of the Emirati shift and has rapidly emerged as a player on the international stage. In a short time, the company has expanded its portfolio and now offers a wide range of products and services in various fields, including missiles, UAVs, electronic warfare, and naval systems. The company has also developed capabilities in MRO (Maintenance, Repair, and Overhaul). One of EDGE’s subsidiaries is Nimr, which offers various military vehicles including the Ajban, Hafeet, and JAIS. These vehicles can be found in the armed forces of Algeria, Lebanon, Jordan, and Saudi Arabia, among others.
Other growing companies include Calidus, founded in 2015 in Abu Dhabi. At IDEX 2019, Calidus unveiled the B-250, a tandem-seat, turboprop light attack aircraft assembled from multiple components supplied by various companies. The B-250 is powered by a Pratt & Whitney Canada PT-6A-68 engine. The aircraft was designed with input from the Brazilian company Novaer, with project leadership provided by Joseph Kovacs, a Brazilian of Hungarian origin who was also involved in the development of the Tucano – Brazil’s light attack aircraft, which has been adopted by numerous international customers.
Calidus also offers the Wahash 8×8 multi-role wheeled vehicle. One of its variants has been integrated with the Ukrainian BM-3M Shturm turret and is also operated by Thailand. During IDEX 2025, the Emirati company showcased the Wahash armed with the Korkut 35mm anti-aircraft system developed by Turkey’s Aselsan. At the same time, Calidus introduced a new variant known as Lahab, a 155mm self-propelled howitzer built to NATO standards. The Emirati offering could pose a challenge to competitors such as France (CAESAR), Germany (RCH 155), and Sweden (Archer).
Without a doubt, the UAE is now the regional leader in the defense sector, offering advanced autonomous solutions, air defense systems including missiles, land systems, electronic warfare, and even space technologies. The country has surpassed Egypt, previously the Arab world’s largest industrial power. At the same time, the UAE has become an inspiration and model for Saudi Arabia, which is also developing its own defense industry and indigenous know-how.
The UAE’s decision to develop its domestic defense capabilities in defense stems from two key factors. First, Abu Dhabi recognized the risks of relying totally on a partnership with the United States, particularly after the Biden administration imposed export restrictions on Saudi Arabia. Second, Emirati leaders see building their own industrial base as a necessary hedge against the oil rentier model, whose longevity cannot be assured.
The UAE approach has emphasized forming joint ventures with various foreign partners. This strategy has allowed the country to acquire foreign technologies, develop them further, and eventually implement and market them as its own. One notable example is the Falaj 3, a 60-meter offshore patrol vessel. In January, Abu Dhabi Ship Building (ADSB), which is owned by EDGE, launched the first ship of this class, with four planned in total. These vessels are the result of a partnership with Singapore-based ST Engineering, which provided technologies from its Fearless-class ships.
Emirati decision-makers have not limited their cooperation to the largest defense corporations. While major companies were crucial in the initial technology transfer phase, EDGE is now actively seeking industrial agreements with smaller yet ambitious and innovative partners that can significantly expand the offerings of Emirati entities. For instance, in January, EDGE signed a letter of intent with Hungary under which the UAE will supply Caracal sniper rifles to the Hungarian military – marking the first time EDGE has provided such systems to a NATO member state. Not coincidentally, UAE President Sheikh Mohamed bin Zayed Al Nahyan welcomed Hungarian Prime Minister Viktor Orbán to Abu Dhabi at the same time.
In December 2024, the Spanish defense company Indra Sistemas and EDGE agreed to establish a joint venture (PULSE) for developing radar technologies in the UAE.
One of EDGE’s flagship products showcased at IDEX 2025 is the Havoc 8×8 Robotic Combat Vehicle (RCV). It was developed with the help of Estonia’s Milrem Robotics, known for its Tracked Hybrid Modular Infantry System (THeMIS), an unmanned ground vehicle (UGV) that was deployed in Mali as part of the French-led anti-jihadist Operation Barkhane. In 2023, EDGE acquired a majority stake in the Tallinn-based Milrem Robotics.
At IDEX 2025, another notable presentation was the latest variant of the Sinyar unmanned aerial vehicle, which is being developed as a multi-role platform for both ISR (intelligence, surveillance, and reconnaissance) and combat missions. EDGE was able to showcase this project due to its acquisition of a 50 percent stake in the Polish aerospace company Flaris in November 2023. This investment strengthened EDGE’s capabilities in aircraft design and production.
Times Aerospace magazine, a print-only publication, described EDGE as “one of the main disruptors to the established names in the defense industry.” While this statement may be somewhat exaggerated since EDGE does not yet pose a significant challenge outside the UAE, its rapid rise cannot be ignored. The trajectory of the UAE’s defense industry represents a shift in Abu Dhabi’s ambitions. It seems only a matter of time before Emirati defense firms expand their exports further and inspire other Middle Eastern nations to adopt a similar strategy.
Robert Czulda is an assistant professor at the University of Lodz, Poland, and a former visiting professor at Islamic Azad University in Iran, the University of Maryland, and National Cheng-chi University in Taiwan. He is the author of Iran 1925 – 2014: From Reza Shah to Rouhani (2014) and Iran’s Security Policy: Internal and International Dimensions (2022). Follow him on Twitter/X: @RobertCzulda