The Korea Trade-Investment Promotion Agency (KOTRA) announced on July 6 that it has published a report titled "From Arms Exports to Full-Cycle Cooperation: UAE Defense Market Entry Strategy" to target the defense market in the United Arab Emirates (UAE).
According to the report, the UAE, ranked 15th in global defense spending, has seen a surge in demand for troops and interceptor missiles due to recent conflicts. Notably, the nature of defense procurement is shifting from a focus on importing finished products to a "full-cycle cooperation model" that encompasses design, production, training, and maintenance (MRO).
As a result, securing large-scale defense contracts in the future will likely require local investment, joint production, and technology transfer.
Currently, the UAE's defense procurement system is led by the Ministry of Defense, the dedicated procurement agency Tawazun, and the state-owned defense company EDGE Group. The EDGE Group, ranked 37th globally in defense, operates 35 subsidiaries across six key areas, including drones, missiles, and electronic warfare.
These changes are expected to create new opportunities not only for domestic defense manufacturers but also for small and medium-sized enterprises in the materials, parts, and service sectors. Promising areas include drones, air defense and interception, aerospace and maritime, cyber and AI weapons, electronic communication components, and software.
Korea and the UAE have maintained a close relationship in the defense sector, bolstered by economic diplomacy, including recent nuclear power cooperation. In February, they signed a memorandum of understanding (MOU) on defense cooperation, and the domestic guided weapon 'Cheongung-II' has gained credibility after demonstrating its interception capabilities during conflicts in the Middle East.
Major domestic defense companies, including Korea Aerospace Industries (KAI) and Hanwha Aerospace, have also established partnership MOUs with EDGE Group to strengthen their collaboration.
KOTRA's Dubai office plans to activate emergency response channels for defense demand and will support domestic companies' local entry through an online defense delegation to the UAE in the second half of the year, as well as attracting Middle Eastern buyers to domestic defense exhibitions.
Kim Jun-kyu, head of KOTRA's Middle East regional headquarters, emphasized, "The UAE defense market is transforming into a model that builds an ecosystem with local companies. We will spare no effort to support our companies in successfully entering the full-cycle defense supply chain in the Middle East through local investment and technology cooperation."
* This article has been translated by AI.
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