Abu Dhabi’s Edge Group signed an agreement with Spain’s EM&E Group on Thursday to explore the establishment of a joint venture in the UAE focused on advanced defence technologies. The companies said the agreement was supported by a commercial pipeline of about $1.5 billion.
The proposed venture would have its headquarters in the UAE and be aimed at both domestic and export markets, the companies said. It is expected to centre on advanced systems including electro-optics, optronics and precision-guided technologies, all areas in which EM&E specialises.
The joint venture would result in “deeper industrial co-operation with Spain's defence sector” and position the UAE as a hub for next-generation defence technology development, Edge managing director and chief executive Hamad Al Marar said in a statement.
Edge has been partnering with international defence manufacturers to localise production and expand technology transfer, as part of the UAE’s strategy to develop manufacturing capabilities in high-value segments of the defence industry. It is also an integral part of the UAE’s push to gain further autonomy in military equipment, diversify into non-oil sectors and export Made in UAE products. More than 50 per cent of Edge's $5 billion order book is dominated by exports to overseas customers and the company is seeking to boost its sales abroad.
Edge, launched in 2019 to consolidate the Emirates’ defence assets, has been expanding its global footprint through a series of recent agreements across Europe, Asia and Latin America. Recent deals have spanned precision weapons, naval platforms and electronic warfare systems.
In November, the Abu Dhabi firm signed an agreement to establish a joint venture with the US defence tech company Anduril. Both sides will design, develop and produce autonomous air vehicles in a new manufacturing centre in the UAE.
Mr Al Marar said in an interview with The National in November that global conflicts have spurred a faster pace of product development, entry into the market and delivery.
