Middle East war a boon for UAE defence giant with global ambitions

The United Arab Emirates' defense firm EDGE is experiencing significant growth due to the ongoing Middle East conflict. Since 2019, the company has produced a wide range of military equipment, including drones, missiles, armored vehicles, AI-powered technology, and naval vessels. During the six-month US-Iran conflict, EDGE saw nearly 3,000 missiles and drones targeting the UAE, despite this damaging its image as a safe haven.

This situation provided a windfall for the Abu Dhabi-owned company, as it now boasts a large number of battle-proven products. Khaled Al Zaabi, a top EDGE executive, highlighted that after the war, their products are now battle-proven, and the group is primarily reliant on exports for revenue.

EDGE, which employs 19,000 people, has become the foremost Arab defense firm. The company's CEO, Miles Chambers, reported a surge in demand from the region, with air defense being a particular focus. EDGE's solutions in this area were still under development when the war began, but Vidal, a research associate at the International Institute for Strategic Studies, expects significant acquisitions once these solutions are released.

One of EDGE's upcoming projects is the SkyKnight, a short-range air defense system set for a 2028 release. The CEO of the company producing SkyKnight hopes to release it sooner by developing it in phases.

The UAE has spent over $8 billion on US weapons since the war began, but the nation is looking to counter threats using cheaper locally-produced drones and jammers. EDGE's chairman and presidential adviser, Faisal Al Bannai, reported that 85% of drone interceptions were made using locally-produced jammers. EDGE's expansion is not without controversy, with Amnesty International claiming the company's armoured vehicles equipped with French weapons were used by Sudan's paramilitaries.

However, the group has denied these allegations. Despite the controversy, EDGE's international strategy involves acquiring defense firms or purchasing majority stakes, aiming to make its products "locally made" and leverage its battle-tested reputation to secure a bigger share of Western markets.