UAE’s EDGE Eyes U.S. Arms Market with Joint Production Push

Abu Dhabi-based defense conglomerate EDGE Group announced plans to co-produce arms with U.S. weapons manufacturers, signaling a major push into the American market.

EDGE’s CEO, Hamad Al Marar, told Reuters this strategy includes potentially shifting some of EDGE’s production to U.S. soil.

This announcement comes on the heels of a newly disclosed joint venture with U.S. defense-tech firm Anduril Industries to build autonomous “hover-to-cruise” drones in the UAE, part of a broader effort to cement deep transatlantic industrial ties.

Background: Who Is EDGE & Why This Matters

Founded in 2019 and fully state-owned by Abu Dhabi, EDGE Group is a rapidly growing advanced technology and defense conglomerate. Its portfolio spans a wide range of capabilities—from drones, armored vehicles, and radar systems to cyber and secure communications tech.

EDGE’s industrial base is strongly rooted in the UAE: over 80% of its 220+ products are now made in-country, supported by more than 170 production and assembly facilities.

The company has also built up a substantial order backlog: roughly $21 billion, according to Al Marar, with much of its export-driven growth coming from regions like Africa and Latin America.

At IDEX 2025, EDGE showcased 46 new systems and struck or expanded global industrial partnerships.

Key Details

Expanding Ties with U.S. Defense Firms

• EDGE is in talks to co-produce weapons with major U.S. primes, including Raytheon, Lockheed Martin, and Northrop Grumman, according to Al Marar.
• The group did not provide firm timelines or specify which product lines would be involved in these collaborations.
• EDGE is also weighing an equity investment in Anduril, valued at around $30 billion, per Al Marar.

The Anduril Alliance & “Omen” Drone

• EDGE and Anduril have formed a joint venture, dubbed the EDGE-Anduril Production Alliance, to develop and manufacture the Omen autonomous air vehicle.
• The Omen is a “hover-to-cruise” drone: it takes off and lands like a helicopter but flies like a fixed-wing aircraft.
• EDGE is investing ~$200 million in the joint venture; Anduril already committed ~$850 million in its autonomy and development stack.
• A 50,000 ft² R&D and simulation facility is being established in Abu Dhabi to support the JV.
• First 50 Omen systems have already been ordered by a UAE customer, anchoring initial production.
• Under the JV’s structure, future production for U.S. orders could be fulfilled at Anduril’s “Arsenal-1” facility in Ohio.

Strategic & Economic Context

• EDGE’s move aligns with its broader goal to deepen integration with Washington and U.S. defense firms, thereby increasing its global industrial footprint.
• From the U.S. side, the collaboration could provide a trusted partner in the Middle East, while expanding access to EDGE’s sovereign-manufacturing capabilities.
• The broader backdrop includes the UAE’s massive planned U.S. investment — approximately $1.4 trillion, as pledged earlier in 2025.

Expert and Policy Perspective

From a geostrategic lens, EDGE’s push into the U.S. defense market represents a significant deepening of the UAE–U.S. industrial relationship. While the two countries have long cooperated on security, this marks a maturation toward joint manufacturing, not just procurement.

For U.S. defense firms, Edge potentially offers:

1. Access to a sovereign, well-funded partner in a stable Gulf state.
2. Co-development and export opportunities into markets where EDGE already has a presence, such as Latin America, Africa, and Southeast Asia.
3. Risk-sharing on R&D, especially for advanced systems like autonomous drones.

From the UAE’s perspective, EDGE’s ambitions help realize key national priorities:

• Building a defense-industrial base under the “Make it in the Emirates” agenda.
• Expanding global reach while retaining sovereignty over critical technologies.
• Generating local employment and technical talent: EDGE emphasizes that its workforce-building efforts have yielded strong increases in Emirati technicians and engineers.

However, such partnerships may come under regulatory and security scrutiny. For instance, U.S. export control laws and foreign ownership restrictions could complicate joint production, especially for sensitive systems like munitions or highly autonomous platforms.

What’s Next & Watch Points

• Regulatory Approvals: EDGE and Anduril will need U.S. and UAE government approvals for their joint activities, especially for export-sensitive systems.
• Production Location: Will EDGE actually build components or full weapons systems in the U.S., or rely on co-production agreements?
• Export Strategy: To what markets will jointly built systems be exported? EDGE’s strength lies in emerging markets — will U.S. buyers be offered the same line?
• Further Investments: Will EDGE move ahead with its proposed equity investment in Anduril, and what will that mean for future JV projects?
• Technology Transfer Risks: As U.S. firms engage more deeply, managing sensitive technology and IP protection will be critical.

Bottom Line

EDGE’s announcement reflects a bold pivot: not just exporting its UAE-made systems, but manufacturing alongside U.S. defense giants for American end users. The move deepens the industrial dimension of the U.S.–UAE security relationship and aligns with both nations’ long-term strategic ambitions. But execution will hinge on navigating regulatory, technological, and export-control challenges — a test for EDGE’s global ambitions and U.S. firms’ willingness to share production with a foreign sovereign partner.