Conflicts spark urgency for arms delivery, Edge CEO says

Global conflicts have spurred a faster pace of product development, entry into market and delivery amid the defence contractor’s push to boost sales to foreign buyers, the head of UAE's Edge has said.

Wars have brought "higher urgency" in delivering defence solutions to overseas customers, prompting Edge to "move faster" to meet demand, Hamad Al Marar, managing director and chief executive of Edge, the biggest defence conglomerate in the country, told The National.

"With these public conflicts, capacity is consumed by the home country, so you might not receive the solutions that you've contracted before. You might face delays in certain capabilities that you wanted at a certain time ... so then you have to go the alternative route," he said in an interview before the Dubai Airshow next week.

"China, Russia, Europe, the US are all very consumed with each other ... so where do the other countries get their solutions from? That would give us maybe an opportunity. And therefore we accelerated, we reduced the time to market and we're yielding these results in terms of exports."

Launched in November 2019, the state-owned defence contractor is working on products from unmanned ground vehicles to aircraft and has formed partnerships with countries from Brazil to Malaysia.

The group is part of the UAE's push to develop its defence manufacturing industry to gain further autonomy in military equipment, diversify into strategic non-oil sectors and export Made in UAE products.

'Leave politics to politicians'

More than 50 per cent of Edge's $5 billion order book is dominated by exports to overseas customers and the company is seeking to boost its sales abroad.

"We're trying to grow it further," Mr Al Marar said. "I would like this group to survive on export sales, besides the local sales. That gives you stability, a horizon, efficiencies."

Competing in global markets has "positive implications", pushing the group to become even more efficient and elevate its rank among international players, he added. Mr Al Marar declined to provide a target for the ratio of local and foreign sales.

Latin America, Africa and South-east Asia are the "hottest" export markets, the Edge chief said.

In Latin American markets, the opportunities go "far and beyond" arms sales with potential for the export of security and border protection solutions to deal with challenges including drug smuggling and illegal fishing, he said.

The UAE's proven track record of safety demonstrates the effectiveness of these law enforcement solutions that Edge can promote to other countries, he added.

In Africa, governments are embarking on "modernisation" of their military equipment, making the continent an attractive market.

The UAE's geopolitical standing on the world map gives the state-owned defence contractor an edge when selling to overseas customers, Mr Al Marar said.

For Latin American and African buyers, “politically if they were to buy from the East, then the West gets upset. If they buy from the West, then East gets upset. [However, when] buying from us, I don’t think we're upsetting anyone.”

Foreign sales do not only hinge on the advantages of Edge and its products but also on “the geopolitical positioning" of the country exporting, he said.

"The UAE, whether it's the Ministry of Foreign Affairs, Ministry of Defence, [or] the intelligence community, the government has been supporting us to achieve all of this," he added.

The UAE's bilateral trade and economic agreements with key partners around the world have given the company an added edge as government discussions about sectors such as finance or energy will also include talks about security partnerships, Mr Al Marar said.

The Arab world’s second-largest economy has signed Comprehensive Economic Partnership Agreements (Cepas) to bolster trade and investment ties globally and diversify its economy from oil. Since it was launched in September 2021, the UAE's Cepa programme has concluded 28 agreements with countries around the world.

Ongoing conflicts around the world have shifted political alliances, procurement decisions and supply-chain security. However, Edge remains focused on doing business regardless of political shifts or crises, he said.

"I've put myself in the mindset of running a business, regardless of whatever shifts, not only political but could be crises like the pandemic or the environment," he said.

When it comes to supply chains, the company seeks to be independent, to gain access and to secure alternative supplies, while keeping geopolitics in mind, he said. Edge seeks approval from the relevant authorities to pursue business opportunities.

"I love to keep politics to the politicians. Whenever we have intent to do business, we go back to the authorities and there's a proper process to manage that."

This approval process is for the "protection" of the company and the country's reputation, he added. "We either get an acceptance or rejection to pursue an opportunity or not. That makes it easier for us, so we can focus on the business and they can focus on the politics."

Military expenditure in the Middle East reached an estimated $243 billion in 2024, an increase of 15 per cent from 2023 and 19 per cent more than in 2015, according to Sweden-based think tank Stockholm International Peace Research Institute (Sipri).

Doubling capex

Edge has made long strides in giving the UAE a measure of autonomy in military equipment.

It currently fulfils 60 per cent to 70 per cent of the UAE's requirements in terms of ammunition, weapon systems and drones, he said. "Anything outside the fighter jets or a main battle tank is today a large percentage from Edge and the local industry," he said. "We had a strategy and we are on track when it comes to the sovereignty, supply, capacity and exports."

Edge has more than 200 solutions on offer to the UAE armed forces. Of these, more than 120 have already been supplied to them and the remaining products are going to be ready within the next two years. "We're actually busy signing contracts," he said.

To meet demand, Edge is adding capabilities, expanding capacity, boosting automation and a modernisation programme for entities within the group that date back 30 years, the executive said.

The company's committed capital expenditure is doubling to about Dh3 billion for the next two years, Mr Al Marar said.

Edge, which employs 17,000 people, will expand its programmes and therefore will gradually increase its workforce by 10 per cent to 20 per cent, he said.

Gearing up for Dubai Airshow

Looking ahead, the defence technology company has to stay relevant, economical and efficient as technology is constantly changing.

"You need to grow the intellectual base of Edge by maybe three or fourfold," he said.

As wars, security and border protection are changing, Edge is looking at solutions geared towards harm-prevention and early threat detection, with AI playing a "big role".

Ahead of the Dubai Airshow, a global aerospace expo next week, Edge said it will enter into a joint venture with US defence tech company Anduril to design, develop and produce autonomous air vehicles in a new manufacturing centre in the UAE.

The expo is an important platform for edge to meet its partners in one venue and stay up-to-date with the latest offerings.

"Working towards the air show, it adds a bit of urgency for people to conclude stuff. It sets the momentum beyond the air show to go and achieve things for the next air show or the next Idex," he said.