UAE defence conglomerate Edge has signed a co-operation agreement with India-based Adani Defence and Aerospace to explore the potential of developing advanced weapons systems across their core product portfolios.
The agreement aims to establish a global platform, using the defence and aerospace capabilities of both companies, to cater to local and global customers, Edge said in a statement on Tuesday.
The pact includes evaluating the potential for co-operation across Edge and Adani products, including weapons covering airborne, surface, infantry, ammunition and air defence products, as well as unmanned aerial systems, loitering munitions, counter drone systems, unmanned ground vehicles, and cyber technology.
The two companies have also agreed to explore the establishment of research and development centres in the UAE and India.
The agreement also allows for the establishment of development, production and maintenance facilities of defence and aerospace solutions to serve both markets, as well as the South-East Asian and wider global markets, Edge said.
“Our agreement with Adani Defence and Aerospace represents a significant milestone, strengthening our ties within India’s defence industry, and underscoring our mutual commitment to advancing UAE-India military ties,” said Hamad Al Marar, managing director and chief executive of Edge Group.
"This agreement reflects our dedication to bringing our customers the most advanced and sophisticated products … while taking advantage of the global export potential, including critical UAE-grown technology.”
The Abu Dhabi-based company currently exports 20 per cent of its products to different markets around the globe, from Africa to Latin America. The UAE armed forces are its largest domestic customer.
Edge expects higher demand for its products amid existing geopolitical tensions, with double-digit percentage growth in revenue forecast in the next two years amid the signing of new contracts and acquisitions, Mr Al Marar told The National in February.
The group, with more than 25 companies under its umbrella, specialises in manufacturing products including drones, military vehicles, pistols, sub-machineguns and sophisticated missile systems.
It has recorded $5 billion in revenue every year and expects the same level or slightly higher this year, with plans to increase revenue in the next two years.
“Around 2026, I would say maybe a two-digit percentage increase. Between this year or next year, we are still fulfilling the contracts that we have in the past,” Mr Al Marar said previously.
The agreement with Adani Defence and Aerospace "reinforces commitment to India’s defence industry, a market of strategic importance for the group", Edge said on Tuesday.
Adani Defence and Aerospace, part of the wider Adani Group, has expanded its operations. In February, it announced a $360 million investment to manufacture ammunition and missiles in India.
It opened two facilities in the northern state of Uttar Pradesh to produce ammunition for India's armed forces, paramilitary forces and police. The facilities are expected to create 4,000 jobs and are estimated to meet 25 per cent of the country's annual requirement, the company said.
