The report, titled “From Arms Exports to Full-Cycle Cooperation: Strategy for Entering the UAE Defense Market,” is aimed at helping Korean firms expand in the UAE after the recent U.S.-Iran war.
The UAE is the world’s 15th-largest defense spender, and its defense spending is expected to account for 5.5 percent of gross domestic product in 2026, according to KOTRA, citing Fitch Solutions.
KOTRA said the war has highlighted the UAE’s need for additional troops and interceptor missiles, likely increasing defense demand further.
The UAE’s defense procurement system is centered on three main players: the Ministry of Defense; Tawazun Council, which oversees procurement and offset programs; and EDGE Group, the state-owned defense conglomerate.
EDGE, ranked 37th among global arms-producing and military services companies, has 35 subsidiaries in six areas, including drones, missiles and electronic warfare. Its 2025 revenue reached about $5 billion, according to the report. The group has also pursued joint ventures with foreign defense firms such as Anduril of the United States, Leonardo of Italy and Indra of Spain.
The report said drones became a major threat during the war, driving demand for drone detection and counter-drone systems in the UAE.
In air defense, KOTRA said the UAE’s multilayered defense system had been tested in combat, creating demand for additional interceptors, early delivery of the remaining seven Cheongung-II batteries and a possible package involving South Korea’s L-SAM long-range interceptor system.
The report also said aerospace and naval cooperation could focus on the KF-21 project and partnerships in combat systems, sensors and propulsion equipment.
KOTRA said defense cooperation between South Korea and the UAE has gained momentum, citing a memorandum of understanding signed by the two countries in February, the combat-proven performance of Cheongung-II interceptors and cooperation agreements between EDGE and Korean companies such as Korea Aerospace Industries and Hanwha Aerospace.
“UAE defense demand is shifting from finished weapons sales to building a defense ecosystem with local firms,” said Kim Joon-kyu, head of KOTRA’s Middle East regional headquarters. “KOTRA will support Korean companies in responding to urgent demand and entering the region’s defense supply chain through local investment and technology cooperation.”
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