A new defence conglomerate for researching and developing advanced technology for weapons systems, cyber defence and electronic warfare was announced in Abu Dhabi on Tuesday, combining more than 25 government-owned and independent companies.
EDGE, inaugurated by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, will partner with world-leading industry-equipment manufacturers and defence contractors to accelerate innovation to protect against cyber attacks, drones, the spread of misinformation and other emerging threats to national security in the UAE and abroad.
“The solution to address hybrid warfare lies at the convergence of innovations from the commercial world and the military industry," said Faisal Al Bannai, chief executive and managing director of EDGE.
"Established with a core mandate to disrupt an antiquated military industry generally stifled by red tape, EDGE is set to bring products to market faster and at more cost-effective price points," he said.
Technology has rapidly transformed the modern battlefield. Two drone attacks on Saudi Aramco production facilities in Saudi Arabia in September pulled more than half of the world’s largest crude exporter’s production temporarily offline.
With persistent geopolitical tensions, demand for military equipment is increasing defence spending worldwide. But R&D spending in the aerospace and defence sector has lagged behind other technology-intensive industries like health care and electronics, and is dominated by the US, which accounted for more than half of the $22.1 billion (Dh81.17bn) invested in R&D in aerospace and defence last year, according to professional services company Strategy&.
These two factors – relatively small R&D investment and one dominant global player – mean there are massive opportunities for growth and innovation in the sector, with the Middle East a key region to contribute to the industry’s performance in the near-term, according to Deloitte, alongside China, India, France, Japan and the UK.
The first phase of EDGE’s formation will bring together the subsidiaries of government-owned Emirates Defence Industries Company, Emirates Advanced Investments Group and Tawazun Holding, integrating more than 25 companies, and employ more than 12,000 people.
Among the entities coming under the EDGE parent company are small arms manufacturer Caracal, precision-guided systems companies Al Tariq and Halcon, and Adasi, an autonomous systems and drone developer.
"The future of warfare is obviously more technical in nature and unconventional," said Theodore Karasik, a senior adviser at Gulf State Analytics in Washington DC. "It is necessary for the Emirates to move forward in this arena on its own." He compared EDGE to America's Defense Advanced Research Projects Agency (DARPA).
New chief executive Mr Al Bannai, formerly a managing director at UAE cybersecurity company DarkMatter, was tapped for the role “based on his start-up background and proven track record in leveraging emerging technologies to expand business opportunities at home and abroad”, according to EDGE.
The new company will focus on autonomous devices like drones, the Internet of Things, advanced propulsion systems, robotics and smart materials, as well as artificial intelligence.
“EDGE will help us transform our domestic capabilities while growing our engagements on defence and security exports,” said Tareq Al Hosani, chief executive of Tawazun Economic Council.