Crown Prince of Abu Dhabi unveils one of Middle East's biggest defence groups

'Edge' integrates more than 25 government-owned and independent entities and will employ more than 12,000 people

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, centre, inaugurates the EDGE advanced technology group at the St. Regis Saadiyat Island Resort. Seen with Faisal Al Bannai, chief executive and managing director of EDGE, right. Hamad Al Mansoori for the Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed inaugurates the EDGE advanced technology group. Seen with Faisal Al Bannai. Rashed Al Mansoori / Ministry of Presidential Affairs

From left: Major General Sheikh Khaled bin Mohamed bin Zayed, Deputy National Security Adviser, member of the Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office; Sheikh Khaled bin Zayed Al Nahyan, Chairman of the Board of Zayed Higher Organization for Humanitarian Care and Special Needs (ZHO); Sheikh Hamed bin Zayed Al Nahyan; Sheikh Mohamed bin Zayed; Faisal Al Bannai; and Lt General Sheikh Saif bin Zayed, UAE Deputy Prime Minister and Minister of Interior, stand for the UAE national anthem, during the inauguration of the EDGE advanced technology group. Hamad Al Mansoori for the Ministry of Presidential Affairs

Guests watch the presentation of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Faisal Al Bannai, chief executive of EDGE, speaking during the launch at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests watching the presentation of EDGE, the new advanced technology conglomerate for the UAE defence industry and beyond at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Faisal Al Bannai, chief executive of EDGE, speaking during the launch at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests during the launch of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests during the launch of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests during the launch of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests during the launch of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

Guests watch the presentation of EDGE at the St Regis Saadiyat Island Resort in Abu Dhabi. Pawan Singh / The National

A new defence conglomerate for developing advanced technology for weapons systems, cyber protection and electronic warfare was announced in Abu Dhabi on Tuesday, combining more than 25 state-owned and independent companies.

Edge was inaugurated by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.

It will form partnerships with world-leading equipment makers and defence contractors to speed up innovations against cyber attacks, drones, the spread of misinformation and other threats to security in the UAE and abroad.

“The solution to address hybrid warfare lies at the convergence of innovations from the commercial world and the military industry," said Faisal Al Bannai, chief executive and managing director of Edge.

"Established with a core mandate to disrupt an antiquated military industry generally stifled by red tape, Edge is set to bring products to market faster and at more cost-effective price points."

Technology has rapidly transformed the modern battlefield. Two drone attacks on Saudi Aramco production facilities in Saudi Arabia in September pulled more than half of the world's largest crude exporter's production temporarily offline.

With persistent tension, demand for military equipment is increasing defence spending worldwide.

But research and development spending in the aerospace and defence sector has lagged behind other technology-intensive industries such as health care and electronics.

It is dominated by the US, which accounted for more than half of the $22.1 billion (Dh81.17bn) invested in research and development in aerospace and defence last year, professional services company Strategy& says.

A exhibition visitor handles a Caracal CAR 816 assault rifle at Abu Dhabi's IDEX defence show on February 18, 2019. The company is a subsidiary of Tawazun Holding, part of the new EDGE conglomerate. Victor Besa / The National

Caracal weapons on display at IDEX in 2013. Ravindranath K / The National

A NIMR armoured vehicle drives in the desert near its production plant in Al Ajban, north of Abu Dhabi on January 7, 2016. The NIMR is produced by Emirates Defence Industries Company, part of the new EDGE conglomorate announced on Tuesday. The National

The homegrown Emirati company supplies the country's armed forces. Courtsy: NIMR

A NIMR Ajban armoured vehicle. Victor Besa / The National.

The NIMR RIV with a mounted machine gun at the 2017 IDEX. Philip Cheung / Crown Prince Court - Abu Dhabi

The defence industry provides thousands of jobs for Emiratis and expats. EDGE will employ more than 12,000 people in total. Victor Besa / The National

A huge NIMR Jais 4x4, which are manufactured for the UAE Armed Forces. Courtesy: NIMR Automotive

A Caracal CAR 817 DMR sniper rifle. The defence industry based around Abu Dhabi and Al Ain support thousands of jobs. Victor Besa / The National

The relatively small investment and dominance of the US mean there are huge opportunities for growth and innovation in the sector.

The Middle East is a key region to contribute to the industry’s performance in the near-term, says Deloitte, alongside China, India, France, Japan and the UK.

The first phase of Edge’s formation will bring together the subsidiaries of government-owned Emirates Defence Industries, Emirates Advanced Investments and Tawazun Holding.

It will integrate more than 25 companies and employ more than 12,000 people.

Among the entities coming under Edge are small arms maker Caracal, precision-guided systems companies Al Tariq and Halcon, and Adasi, an autonomous systems and drone developer.

"The future of warfare is obviously more technical in nature and unconventional," said Dr Theodore Karasik, a senior adviser at Gulf State Analytics in Washington.

"It is necessary for the Emirates to move forward in this arena on its own."

Dr Karasik compared Edge to America's Defence Advanced Research Projects Agency.

Mr Al Bannai, formerly a managing director at UAE cybersecurity company DarkMatter, was chosen for the role “based on his start-up background and proven track record in leveraging emerging technologies to expand business opportunities at home and abroad”, Edge said.

The new company will focus on autonomous devices such as drones, the Internet of Things, advanced propulsion systems, robotics and smart materials, as well as artificial intelligence.

“Edge will help us to transform our domestic capabilities while growing our engagements on defence and security exports,” said Tareq Al Hosani, chief executive of Tawazun Economic Council.