Overview

The UAE is a major defense market that offers many opportunities for U.S. exporters. The UAE has reduced arms imports by more than 40% over the past decade, taking it from the third to the ninth largest importer globally and the eighth largest recipient of U.S. arms between 2017 and 2021 according to the Stockholm International Peace Research Institute (SPIRI). The UAE spent $23.2 billion on defense acquisitions in 2020, and between 2010 and 2019, the UAE spent between 15-16% of their annual defense budget on procurement with foreign suppliers (Defense News).

In 2025 at IDEX (International Defense Exhibition), there were almost $7 billion in total deals announced. In 2023, at the IDEX (International Defense Exhibition) and NAVDEX (Naval Defense Exhibition) shows, the UAE Armed Forces signed a total of 86 deals worth $6.36 billion, compared to $5.7 billion in 2021. The two shows attracted 130,000 visitors and had 1,350 exhibitors from 65 countries with 41 international pavilions.

Key Stakeholders

The UAE is investing in the defense sector to advance the country’s strategic interests and diversify the economy. The EDGE Group was formed in 2019 to consolidate over 25 entities including the Emirates Defense Industries Company (EDIC), Emirates Advanced Investments Group (EAIG), Tawazun Holding, and others. The EDGE Group has $5 billion in estimated revenue with approximately 8,000 employees working across four verticals: platforms & systems, missiles & weapons, space & cyber technologies, and trading & mission support. The EDGE Group ranks among the top 25 military suppliers in the world (SPIRI). In February 2021, the Tawazun Economic Council (Tawazun) was appointed to manage all acquisitions for the UAE Armed Forces and Abu Dhabi Police.

Offset Program

The Tawazun Economic Program, which is overseen by the Tawazun Council, is the UAE’s offset program that seeks to capitalize on the country’s extensive defense procurements. The key objectives of the program include developing the UAE defense sector, contributing to the nation’s economic diversification, and achieving high-value exports while expanding employment opportunities for UAE nationals. Tawazun issued new offset guidelines in 2019. While the focus of the offset guidelines is on the development of the defense and security industry in the UAE, Tawazun will also consider projects in strategic industries including aerospace, infrastructure & transportation, communication technology, artificial intelligence, education technology, sustainability, environment & climate change, and food & water security.

A company incurs offset obligations if the value of the contract is more than $10 million or if the value is less than $10 million and the foreign company or parent already has active offset obligations. The latest policy guidelines also included changes to the project process (Tawazun).

Foreign Military Sales (FMS) and Direct Commercial Sales (DCS)

The UAE procures defense equipment through FMS, DCS, and hybrid routes. Many procurements contain both FMS and DCS components. The UAE has one of the largest FMS portfolio in the world. Security cooperation programs focus on integrated air and missile defense, air force modernization, rotary wing aviation modernization, interoperability and access, counterterrorism, and maritime operations.

Cooperation between the United States and the UAE

The United States and the UAE have robust military-to-military cooperation. The United States and the UAE enacted a Defense Cooperation Agreement in 2019, which updated a 1994 defense accord. The UAE was named a U.S. Major Defense Partner in 2023. 

Leading Sub-Sectors

The UAE is a net importer of military equipment, and the country is open to foreign suppliers. However, the UAE is working to reduce its dependence on defense imports through the development of its own defense manufacturing capability. The UAE Air Force Air Defense (AFAD) traditionally receives the lion’s share of the UAE’s total defense procurement budget, followed by the Land Forces, Presidential Guard, and the Navy.

The UAE’s procurement priorities include missile defense; precision fires; intelligence, surveillance and reconnaissance (ISR); command and control; expeditionary logistics; and maintenance, repair, and overhaul (MRO). The UAE National Guard Command (NGC) is expanding rapidly and is tasked with protecting key infrastructure such as ports, water desalination plants, oil and gas platforms, pipelines, and the Barakah nuclear power site.
 

Opportunities

Local Manufacturing

To support their economic vision, the Abu Dhabi government seeks successful partnerships that could help develop local manufacturing capabilities and transfer knowledge. It is the UAE’s vision that such projects would supply local needs and export to global markets.

MRO and Training

Key opportunities exist in areas where the UAE Armed Forces outsources non-core military service activities such as maintenance, repair, overhaul, and military training to UAE and non-UAE-based private and government contractors.

Integration Services 

The need for integrators continues to grow due to the UAE using different platforms from different suppliers and different countries.

Unmanned Systems

The UAE is looking for suppliers of cutting-edge unmanned systems and counter UAS technology to be used for surveillance applications for its borders and critical infrastructure assets.

Challenges

While the UAE defense sector is promising and offers many opportunities, foreign companies face several challenges in the market. Defense tenders in the UAE often lack transparency and information is often difficult to ascertain. Procurement requirements may be withheld or changed with minimal or no notice. In addition, negotiations and requirements can be quite challenging. U.S. companies sometimes report payment issues such as late payments.

Resources

Trade Shows and Exhibitions

Please contact us for additional information regarding trade shows, U.S. pavilions, and export promotion services that may be available for U.S. companies.
Dubai Airshow
Date: November 17-21, 2025
Venue: Dubai World Central (DWC), Dubai Airshow Site, Dubai, UAE

The Unmanned System Exhibition and Conference (UMEX)
Date: January 19-22, 2026
Venue: Abu Dhabi National Exhibition Center (ADNEC), Abu Dhabi, UAE

International Defense Exhibition and Conference (IDEX)
Date: January25-29, 2027
Venue: Abu Dhabi National Exhibition Center (ADNEC), Abu Dhabi, UAE