UAE Defence Industry: How to Enter the Market as a Supplier

The UAE defence industry has grown from an importer of defense systems into a manufacturer and exporter, which opens a clear route in for international component manufacturers looking for a UAE distributor or local representative. EDGE Group alone reported $5 billion in sales last year, with exports above 70% of the total.

How the UAE defence industry grew: from buyer to builder

The UAE built its modern armed forces largely on imported systems, and it spent heavily to do so: the U.S. Commerce Department’s country guide puts defence acquisitions at $23.2 billion in 2020. The same guide notes that the country is working to reduce its dependence on imports by developing its own manufacturing capability.

The institutional groundwork is older than the industry itself. Tawazun Council, the body that today regulates and enables the sector, has operated since 1992. The national champion came later: EDGE Group was established in 2019 and today brings together about 25 companies covering both military and civilian products.

The objectives are stated plainly: grow the domestic sector, diversify the economy, achieve high-value exports and create jobs for UAE nationals.

EDGE Group: the national champion

EDGE has become the visible face of the shift, and its numbers show how quickly the model has scaled. In May 2026 its CEO said the group recorded $5 billion in sales last year, with exports accounting for more than 70% of the total, and that contracts under execution exceed $25 billion.

Exports were about 2% of sales when the group was created and 35% in 2024, according to figures reported around IDEX 2025, so the export share has roughly doubled in a single year.

• Workforce: 19,000 employees, including 4,000 engineers, half of them UAE nationals.
• Localisation: officials say more than 80% of the group’s systems are now produced in the UAE.
• Production: in 2025 EDGE delivered over 68 Industry 4.0 projects, which it says doubled production capacity across 13 entities.
• Reach: the group says it has a footprint in over 50 countries and ranks among the world’s top three suppliers in precision-guided weapons.

UAE defence localisation policy and the new defence free zone

Localisation is now the organising principle of national policy. Tawazun Council’s 2025–2028 strategy names industrial localisation as a cornerstone of the defence sector, and the Tawazun Economic Programme supports local supplier integration in defence projects.

The next step is physical. In 2026 Tawazun and AD Ports Group announced the Al Selmiyyah Defence Industrial Free Zone in Abu Dhabi, with Tawazun overseeing regulation, licensing and compliance and AD Ports leading master planning and infrastructure. It sits within Operation 300bn, the national strategy to raise industry’s contribution to GDP to AED 300 billion by 2031.

Partnerships with foreign industry follow the same logic:

• Tawazun and South Korea’s LIG Nex1 are exploring a UAE-based defence manufacturing hub covering R&D, production, maintenance and supply chain integration.
• EDGE signed an MoU with France’s Icape to localise printed circuit boards, electronic components and turnkey subsystems.
• Tawazun and Lockheed Martin agreed to establish a microelectronics assembly facility in the UAE.
• Leonardo and EDGE announced a joint venture to design, develop and produce defence systems in the UAE.

IDEX 2025: UAE defence contracts and market size

The 2025 edition of IDEX and NAVDEX in Abu Dhabi showed both the size of the market and how much of it now stays at home. Tawazun announced 55 deals worth AED 25.15 billion across the five days, 10% more than in 2023.

On opening day, AED 3.825 billion of the AED 3.97 billion signed came from local contracts, including awards to EDGE, Thales Emarat Technologies and Calidus Land Systems. The exhibition itself drew 1,565 companies from 65 countries, 16% more than the previous edition, and EDGE alone closed $2.9 billion in new sales at the show.

How to enter the UAE defence market as a component manufacturer

As production moves into the UAE, the buyers of electronic and mechanical components are increasingly local manufacturers rather than foreign ministries. Every localisation announcement above, from printed circuit boards to microelectronics assembly, depends on a qualified supply chain of connectors, sensors and electronic components.

Two features of the market shape how a foreign manufacturer should approach it. Industrial participation and local-content expectations reward suppliers with a real UAE presence, and the official U.S. guide cautions that defence tenders in the UAE often lack transparency, which makes local relationships and knowledge of the process valuable.

This is the gap NEFCORE exists to fill: connecting global manufacturers of mil-spec connectors, sensors and electronics with UAE prime contractors through value-added distribution and strategic representation. If you manufacture critical components and want to understand how to enter this market, get in touch.

Working with a UAE defence distributor: frequently asked questions

Why does a manufacturer need a distributor or representative in the UAE?

Localisation policy means UAE primes and procurement bodies increasingly favour suppliers they can reach, qualify and support locally. A local distributor or authorized representative handles introductions, RFQs, import and customs, so you do not have to build a UAE presence yourself.

Who buys defence components in the UAE?

The main customers are the UAE prime contractors, led by EDGE Group, and Tawazun Council, the government entity responsible for procurement and contract management for the UAE Ministry of Defence and security agencies.

What does NEFCORE do for manufacturers?

NEFCORE provides value-added distribution and strategic representation for manufacturers of mil-spec connectors, sensors and electronic components, presenting them to UAE defence and aerospace primes. We also support market expansion in the wider region, including railways and datacenter infrastructure.

How do we start a conversation?

Use the contact page to tell us about your product range and target sectors, and we will respond with how we would position it in the UAE market.