UAE's Edge expects to match 2024 revenue mark of $5bn this year

UAE defence conglomerate Edge expects to this year match the $5 billion revenue it had hit in 2024 as it continues to the expand and venture into new export markets, its managing director and chief executive said.

“I think we will be on the same ratios [in terms of revenue]. However, we have been signing export contracts and these export contracts take time – between 18 months to three years before you start realising revenue,” Hamad Al Marar told The National on Tuesday on the sidelines of the International Defence Exhibition and Conference (Idex).

The Abu Dhabi-based company exports 20 per cent of its products to markets from Africa to Latin America. The UAE Armed Forces is its biggest domestic customer. The company supplies 80 per cent of its total production to the client.

“We have really worked hard on diversifying our offering since inception. We have moved from about 19 products [in the beginning] to over 200 products right now,” Mr Al Marar said.

“Over the last five years, we have expanded our footprint to 90 countries, from Asia to Europe, Africa and Latin America. What we do see as well is that our export is on the rise, which shows that the UAE is being recognised as an arms exporter and a technology exporter.”

Last year, Edge signed a contract with the Kuwaiti Ministry of Interior to strengthen its national marine and coastguard fleet capabilities. The deal included the reconstruction, repair, development and upgrade of vessels, according to a Wam report.

It also signed a preliminary agreement with Brazilian Navy for the development of autonomous surface and aerial defence systems.

Overall, the company signed $2.3 billion worth of export contracts last year, according to Mr Al Marar.

It is also collaborating with Hungary's Ministry of Defence on innovation and research and development which could pave way for “potential multi million euro deals,” Edge said last month.

On Tuesday, the company said high-performance small arms unit Caracal has signed an agreement with advanced ammunition producer Ketech Asia for the assembly and manufacturing of its CAR 816 assault rifle in Malaysia.

The deal follows a 2023 reseller agreement and Ketech Asia will now manufacture components of the CAR 816 at their recently opened factory in Pahang, Edge said in a statement.

Set up in 2019, Edge specialises in building advanced technology for weapons systems, cyber protection and electronic warfare, with more than 35 companies under its umbrella.

Edge subsidiary Abu Dhabi Ship Building also has €1 billion ($1.04 billion) worth of agreement to supply corvettes to Angolan navy under a deal signed in 2023.

The company has opened an office in Brazil as part of its expansion push into South America. It plans to further consolidate its presence in Brazil and seeks to enter new markets including Argentina and Paraguay for exports of defence products.

The company also has “great activities,” in Saudi Arabia through its subsidiary Nimr and has co-operation agreements with Qatar, Mr Al Marar said, without elaborating.

In 2022, Nimr signed an agreement with Saudi Arabian Military Industries to transfer technology.

Edge is also teaming up with Italian shipbuilder Fincantieri to manufacture sophisticated naval vessels and sell them around the world.

“The whole thing was built on the basis that there is a growing demand for vessels. There is a strong drive from us to equip ships, vessels with our subsystems, radar, smart systems that we have,” he said.

The naval vessels market globally is expected to reach $206.43 billion by 2029 from $110.51 billion in 2024, driven by higher demand from North America and the Asia-Pacific region, according to a Mordor Intelligence report.