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How the UAE Is Trying to Build a Global Defense Giant
How the UAE Is Trying to Build a Global Defense Giant
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Subtitles (162)
0:00
No one wants war, but war is also a validation. War tests your preparation.
0:05
The UAE has long relied on foreign defense systems.
0:09
Now, it’s building more of that capability at home.
0:12
When you import a solution normally,
0:15
from anywhere in the world, you also import a doctrine, the way to use it.
0:21
At the center of that ambition is EDGE Group — an Abu Dhabi-backed
0:24
defense and technology company launched in 2019.
0:28
When EDGE was created, it was created with a different flavor to it, from ammunition to space.
0:34
Now, the question is whether EDGE can turn the
0:37
country’s push for self-defense reliance into a global business.
0:53
On the outskirts of Abu Dhabi, inside Tawazun Industrial Park,
0:57
the UAE’s defense ambitions are being turned into hardware.
1:02
This is where EDGE Group is trying to turn the UAE from a buyer into
1:06
a builder — bringing design, engineering, testing and production into one ecosystem.
1:12
The company is still a young player by global defense industry standards.
1:16
But it has grown quickly, consolidating more than 35 entities into a single
1:21
defense and advanced technology group. The result is a company grouped into six
1:26
core clusters, covering everything from missiles and weapons to space and homeland security.
1:34
The ambition is not just to build for the UAE, but to prove those systems can compete abroad.
1:41
Our first stop was HALCON — EDGE’s missile and weapons production facility.
1:46
This is where I met Hamad Al Marar, Managing Director and CEO.
1:52
This is an electromechanical-based facility. It is fully automated when it comes to assembly,
1:58
and it is where really technology and human have actually met.
2:02
Was the goal to always become an exporter when EDGE first started out?
2:07
It’s important to try and promote your products. And if you have a strong belief in what you do,
2:13
beyond your local user, it’s credibility that you achieve.
2:17
And how has the last four months of war changed how you think about doing business?
2:23
We understand the need. We understand the urgency. It has really shaken our system
2:29
in terms of paperwork and bureaucracy. It has, I would say, made us more efficient.
2:35
Though wars are always bad, but sometimes you need a shake to reconsider things.
2:39
A shake for the better, would you say? For the better. Yes.
2:43
That urgency has become part of Al Marar’s argument for building more
2:47
defense capability at home. He says the recent conflict
2:50
showed how much of the UAE’s response now depends on nationally developed technology.
2:56
You are running, probably, what is one of the world’s fastest-growing defense
3:01
startups today — and this is a business that has actually been tested by a real war on home soil.
3:08
Of course, no one wants war, but war is also a validation. War tests your preparation.
3:16
It came after decades and decades of work, and it surely demonstrated our readiness,
3:25
our resilience, and the capabilities that mainly were home grown.
3:31
Al Marar says UAE Armed Forces intercepted more than 95% of incoming threats,
3:38
with more than 80% of those interceptions involved nationally grown technologies.
3:43
What type of technology and products was EDGE actually using during the Iran war?
3:49
We’ve used many of our drones, of course. But what was very important is that we deployed a
3:55
full geofencing capability of the whole nation in over 190 sites in less than 48 hours.
4:03
And how much of the technology and product that
4:06
EDGE actually makes today is genuinely homegrown?
4:09
If I look at the portfolio in terms of products, not configurations, over 90% are UAE,
4:17
10% comes from abroad, our entities that we own in Europe, we own in Latin America,
4:23
and elsewhere. In the products that we have locally, they are all stamped by Made in the UAE.
4:30
I think you're touching on a really critical point here. Is this about sovereignty for the UAE,
4:37
relying less on those Western suppliers like the United States, for example,
4:41
or is this now about building globally competitive weapons and technology supply?
4:49
Definitely, we want to be competitive. And let's take it on different verticals,
4:53
I would say. When you import a solution, normally, from anywhere in the world, you also import a
5:01
doctrine — the way to use it. And there are no two armies alike. The geography is different. The size
5:11
is different. The force multiplier definition is different, and the affordability is different.
5:16
And what has that development meant for the UAE and EDGE’s relationship with dominant
5:23
Western suppliers, like the United States, for example? Because I'm sure if the UAE is
5:27
buying less weapons, then the U.S. is probably raising one eyebrow, right?
5:32
Look, life is business, and we're not dropping anyone. Are we developing a
5:40
fighter? Answer is no. Are we developing a main battle tank? The answer is no.
5:44
But there are other things that we do rely on friends and allies as well. Now,
5:51
are we buying less? Yes, we're buying less. But how much less? This is the
5:56
United Arab Emirates Armed Forces should decide. I do not want to be
6:01
the sole supplier of the UAE Armed Forces. I have a family, right, and I need diversity,
6:06
and we need capability. No nation can work alone.
6:11
My next stop with Al Marar was ADASI, EDGE’s autonomous systems business.
6:17
Inside this assembly hangar, the focus is on unmanned aircraft,
6:21
built for surveillance, strike missions and battlefield support.
6:26
What would you say is the strongest growth signal, or the strongest growth market right
6:31
now? Where is demand actually coming from? I would say we’re focusing on air defense, layered
6:36
defense, defense from cyberattacks, defense from drones, defense from incoming missiles,
6:44
ballistic missiles, fighter jets, helicopters. You need to optimize your layered defense,
6:51
because it became a war of attrition. You need to be able to afford it and
6:56
stand tall for the longest time possible. How do you keep the manufacturing costs low
7:02
so that you can compete in the global market? It’s always about adopting the best available
7:08
options — no legacies. There is always a better way to do things cheaper.
7:13
When you design towards a price, most likely you will get there. But when you design only for spec,
7:22
then you will try to get to that price. Is advanced warfare becoming more expensive
7:28
or less expensive for the buyer here that you have in mind?
7:31
It depends. The whole approach has changed. Maybe before you needed something on a certain standard,
7:39
on a certain level. Maybe today you need a cheaper solution. The rules
7:43
of the game have changed. A drone can take down a tank. Previously,
7:49
it was a tank that takes down a tank. So, you have to adapt, or you will be behind.
7:58
EDGE has also just opened up in Europe, in Paris specifically, with a French government cooperation
8:04
agreement, as well. How significant is that deal for EDGE and for Abu Dhabi?
8:09
Europe is where the next budgets are. We would like to contribute to the security of Europe.
8:16
We feel that we have a value. We feel that Europe have recognized this value by accepting
8:23
us into Europe. These are facts. Now we own entities in Estonia, we own an entity in Poland,
8:30
we own an entity in Switzerland, we own an entity in Germany, we own an entity in France,
8:35
and we have JVs in Spain, and we have partnerships and JVs in acquisitions in Italy.
8:42
We have a very nice footprint in Europe,
8:44
and this would have not been possible if the UAE wasn't accepted in Europe as a partner,
8:52
knowing and trustworthy with NATO, and the way we firewall things.
8:56
Plus, you need another player in Europe, even the big players today,
8:59
we're working with them. There is always these collaborations,
9:02
but they only start when you put your ego aside. There is always someone better than you,
9:07
and you need to be on this learning curve forever. Things are ever changing.
9:13
Still, indeed, one of the world's most protected defense markets, though. So,
9:17
what are the solutions that Edge can actually provide?
9:20
We have over 200 solutions. Over 70% that are on production lines,
9:28
and we have about 30% that will see the light in the next two years.
9:33
When we look at EDGE Europe, we mean it when we say EDGE Europe.
9:36
EDGE Europe is European. EDGE Europe will utilize our platforms. EDGE Europe will produce in Europe.
9:46
We're complying with their rules, and those are the rules of the game. We need to comply
9:50
with NATO. They need to go in operation on NATO. We totally understand that,
9:55
and if we can accelerate security agenda in Europe, we will do that. If we can accelerate
10:02
wealth and flourishing the ecosystem, we will do that. If we are adding value, we will do that.
10:09
The voices against foreign money coming in, particularly into the European defense
10:14
sector are rising, so what is your plan to combat that political push back?
10:19
If I faced one, maybe I do have an answer, but I haven't faced any yet.
10:25
Scale is only part of the story. The bigger test is whether systems
10:30
made in the UAE can compete globally. At CARACAL, EDGE’s small-arms business,
10:36
that export push is already visible on the production floor.
10:40
Here, weapons are assembled for domestic use — and for international customers.
10:45
So, what specifically is being made inside this part of the warehouse?
10:49
We do assemblies of everything we produce for small arms in this place — so going
10:58
from a 9mm pistol to a 12.7 sniper. And where are all these small arms going?
11:05
Where are you seeing the biggest demand? The highest demand is, of course, the UAE,
11:10
but we do have many export clients, and mainly in Asia and Africa.
11:15
Do you think that the global market for defense is getting more and more fragmented?
11:22
I would rephrase it, and I don’t want to sound political, but unfortunately,
11:28
70% of the countries in the world lay outside EU, U.S., Russia and China.
11:37
The UAE is a very nice, natural, peaceful choice for many countries.
11:42
If you buy from China, you upset U.S. You buy from U.S, you upset China. UAE is neutral. That's one.
11:49
But the second thing what is equally important is
11:52
we do not have bureaucracy towards export permits. They come out fast.
11:57
No one wants to wait for a rifle for 6 months
12:00
to receive a shipment. We have a very fast turnaround in that angle.
12:05
Actually in some cases we are able to start supplying beyond or faster than
12:10
a country issuing a contracting permit. And that's an advantage.
12:14
Our business model is quite different. We build to stock and we sell which makes it a faster
12:21
turnaround on our inventory, faster turnaround to satisfy our sales order, and that's a big merit.
12:27
But only to those countries where the export control has been approved, right?
12:32
Of course. No, no, nothing goes into the country or outside the country without our MOD process.
12:39
You're leading almost 20,000 people inside this organization.
12:44
How do you do that day-to-day? And what would you say is the number one thing
12:48
that you think about when you get out of bed coming into the office every day?
12:51
The largest risk I took is the will to work with a great team like the team I have.
13:00
What keeps me up at night is, maybe you said 20,000, but this could be 100,000 dependents,
13:10
families, kids, siblings, mom, father, that are relying on the bread earner in this group,
13:18
that relies day and night on our decisions. And I'm a father myself, that keeps me up at night.
13:25
I would spend my day, day and night not to lose a
13:30
single employee in this organization. And I think that's my largest responsibility.
13:35
What's the biggest challenge that you're facing right now, leading EDGE?
13:40
Every day. Every day, if I take it financially,
13:45
the group has needs and we need to keep money flowing.
13:51
The group needs backlogs. We need careers and we need to sustain the workforce.
13:57
Politics, geopolitics, supply chain, logistics,
14:02
things that are in your hand maybe you can control, but things outside your hand,
14:05
you have to navigate through and there is no experience that can do that.
14:10
You learn in the moment and that's the difficult part of it. Taking decisions in the unknown.
14:18
And as you continue to lead and grow EDGE, where do you see this business in the next decade? ]
14:24
Top 15. Soon.
14:27
How soon?
14:28
Very soon.
14:30
Very soon?
14:30
Very soon. At least in my tenure.
14:32
Hamad, great to see you today. Thank you for showing me around.
14:35
Lovely to see you. Thank you so much.
14:35
Appreciate it. Thank you.
14:36
Thank you.
