A new agreement between Spain's EM&E Group and the UAE's EDGE highlights how defence production is increasingly being built through international partnerships rather than national borders

by Kasun Illankoon, Editor in Chief at Tech Revolt

For decades, defence exports followed a relatively predictable model. Companies designed products at home, manufactured them domestically and sold them abroad. Today, that formula is changing.

Across the global defence industry, governments and manufacturers are increasingly looking beyond traditional buyer-seller relationships and instead building long-term industrial partnerships that combine technology sharing, local production and joint innovation. The latest example emerged at Eurosatory, one of the world's largest defence exhibitions, where Spain's EM&E Group and the UAE's EDGE formalised a joint venture that could offer a glimpse into where the industry is heading next.

The partnership, first announced earlier this year and now formally established through a signed agreement, is expected to begin operations during the final quarter of 2026. While the announcement centres on advanced weapon systems, the larger story is about how countries are reshaping defence manufacturing to meet rising demand, shorten supply chains and expand access to new markets.

What makes the agreement particularly notable is the scale of anticipated demand. The joint venture's projected commercial pipeline has already increased from US$1.5 billion when the partnership was first unveiled to US$1.725 billion, a 15 percent rise in only a few months. That increase offers a snapshot of a defence sector experiencing sustained momentum as governments across Europe, the Middle East and Asia continue modernisation efforts.

For American observers, the development reflects a trend that has become increasingly familiar. Defence manufacturing is no longer solely about producing equipment. It is becoming equally about building industrial ecosystems capable of delivering technology, production capacity and innovation across multiple regions.

The EM&E-EDGE venture illustrates this shift in practical terms.

Under the arrangement, EM&E will transfer key technologies to support manufacturing within the UAE, allowing components of its advanced weapon stations to be produced through EDGE's growing industrial infrastructure. Other portions of production will remain in Spain, creating a distributed manufacturing model that leverages capabilities in both countries.

The companies also plan to develop an entirely new weapon station designed to address evolving operational requirements within the global defence sector.

Such arrangements are becoming increasingly common as nations seek greater resilience in supply chains while maintaining access to advanced technologies. Rather than concentrating production in a single location, manufacturers are creating networks that can support customers across multiple regions while reducing bottlenecks and increasing responsiveness.

This approach has become especially relevant following years of supply chain disruptions and growing geopolitical uncertainty. Defence procurement agencies are increasingly prioritising reliability and production capacity alongside technological sophistication. The ability to manufacture closer to customers and adapt products to regional requirements has become a competitive advantage.

The UAE has spent the past decade positioning itself as a growing hub for advanced manufacturing and defence technologies. Through investments in industrial capabilities and research initiatives, the country has sought to move beyond being solely an importer of defence equipment and instead become a contributor to development and production.

EDGE has emerged as a central player in that strategy. Since its formation, the group has pursued partnerships aimed at accelerating technological development while expanding local industrial capacity. The agreement with EM&E aligns closely with that objective, combining established European expertise with manufacturing capabilities in the Gulf region.

For Spain, the venture represents a different but equally important opportunity. European defence companies are facing increasing demand for their technologies while simultaneously competing in a rapidly evolving global marketplace. Partnerships that extend production and market reach can provide access to customers and opportunities that might otherwise take years to develop independently.

As governments increase defence spending and prioritise industrial cooperation, companies capable of operating across borders may find themselves particularly well positioned.

Omar Al Zaabi, President – Commercial, EDGE, emphasised both the industrial and commercial significance of the venture.

“This joint venture brings EM&E’s advanced weapon systems production into EDGE's industrial base, giving us a stronger platform to serve customers around the world. The rise in our commercial pipeline to $1.725 billion since February confirms there is real appetite for what we will build together, and we look forward to the joint venture beginning operations in due course.”

His comments reflect a broader reality confronting defence manufacturers worldwide. Demand is growing, but so too is the expectation that suppliers provide not just products, but enduring industrial partnerships capable of supporting long-term capability development.

Fernando Fernández, CEO of EM&E Group, framed the agreement as a milestone in the company's international expansion strategy.

“With the signing of this agreement, the joint venture with EDGE becomes a tangible reality that boosts our internationalisation and highlights the technological innovation we lead from Spain. Combining the cutting-edge nature of our weapon systems with EDGE's industrial and technological muscle not only dynamises our global export capabilities but also establishes a solid foundation to jointly lead the creation of new avant-garde security and defence solutions.”

Beyond the corporate statements, the partnership points to a larger transformation taking place across the defence sector. The next generation of industrial growth may not come solely from exporting finished products. Instead, it may be driven by shared production models, technology collaboration and multinational manufacturing ecosystems.

For policymakers, industry leaders and investors alike, that shift carries significant implications. Countries seeking to strengthen domestic industries increasingly view international cooperation as a pathway to growth rather than a compromise. Manufacturers, meanwhile, are discovering that strategic partnerships can unlock new markets and accelerate innovation simultaneously.

The EM&E-EDGE venture is one example of that evolution. Whether measured by its growing commercial pipeline, its cross-border manufacturing model or its ambitions to develop future defence technologies, it reflects an industry moving toward deeper collaboration at a time when demand for advanced capabilities continues to rise.

In an era defined by technological competition and industrial transformation, the future of defence manufacturing may depend less on where products are built and more on how effectively nations and companies build them together.

Related Articles:

How Pattern Intelligence Is Turning Ecommerce Operations Into a Real-Time AI System

Why Trust Has Become the Most Valuable Currency in MENA's Digital Payment Revolution

How the 2026 FIFA World Cup Became the Most Revealing Test of AI in the Workplace