United Arab Emirates takes giant step in exporting military equipment to Latin America
The consonance between the Gulf region and South America is thriving in the military sphere with the export of military equipment by the United Arab Emirates. In these turbulent times, countries are committed to progress in defence and the United Arab Emirates (UAE), aware that the competition in the Gulf region is homeric, is making enormous efforts to avoid being left behind in the new arms race.
Since 2019, the boom in military investments coinciding with the pandemic led to the merger of the 25 main Emirati companies into one called EDGE Holding Group, whose objective was to impose a clear dominance in exports both in the manufacture of weapons and drones, and in the search for markets in which to trade them.
If there is one market in Latin and South America that is thriving, it is the arms market. The quest for increased security in large cities is both a priority for local governments and a driving force for them to increase investment and seek collaboration with external partners. According to Al-Arab, RAN Risk Intelligence Consulting's senior Middle East and North Africa analyst Ryan Paul confirmed that the announcement of the partnership between the UAE and the Latin American country "shows signs of stabilisation and opens up new markets with great opportunities". In addition, as a first step, the partnership will begin monitoring and enhancing the UAE's drone capabilities along South America's most troubled borders, primarily the one between Brazil and Venezuela.
Combining the Brazilian Navy’s products with #LeadingEDGE’s extensive design, technological development, and integration expertise, the strategic collaboration will support in developing national defence capabilities and expanding our global footprint. Watch for more.#LAAD2023 pic.twitter.com/Zi5tq5kwKf
— EDGE (@_edgegroup) April 14, 2023
Among the Latin American state's motives are counter-terrorism, border control and an attempt to address the continent's main security problems: the strong link between gangs and drug trafficking. According to Al-Arab, the company announced its entry into the Latin American arms market under the slogan 'Made in the Emirates'. One of the most important partnerships is with the Brazilian Navy. This collaboration was made possible thanks to the Brazilian company's vast experience in defence and geostrategic issues, and effected through the signing of a cooperation agreement in Rio de Janeiro as part of the LAAD2023 activity at the 16th edition of the IDEX 2023 International Defence Exhibition.
The main act of the event was EDGE's announcement of the opening of a regional office in Latin America based in Brasilia, the capital of Brazil, led by a team of highly experienced industry experts. This office will enable the Emirati company to expand the availability of services, products and solutions in Brazil and other markets on the continent, create new partnerships and promote unique and competitive propositions for the development of defence capabilities in the region.
Under the agreement, the new partners will pursue commercial opportunities and joint development of anti-ship missiles, a surface-to-surface missile, and supersonic land-based missiles that exceed current market capabilities. Examples include the UAE's "QX6-50" drone, which is capable of travelling 200 kilometres with a payload of up to 50 kilograms, and the "Gunya" missile, which has a capacity of 480 kilograms and is capable of reaching a maximum speed of 1,000 kilometres per hour.
#LeadingEDGE: Driving the future of the global advanced technology and defence landscape ??
— EDGE (@_edgegroup) April 13, 2023
We are back live from Brazil in Day 3 of #LAAD2023.#BeyondPossibilities pic.twitter.com/Qcyk1MX900
EDGE Holding Group managing director and CEO Mansour Almulla said: "The inaugural participation in LAAD 2023, EDGE Group's first foray into Latin America, was a great success. "It has opened up many valuable opportunities to showcase our highly competitive and disruptive portfolio of defence capabilities, mainly in the areas of autonomous systems, smart weapons, electronic warfare and secure lines for us and our current and potential partners," he explained. Almulla added that it is proud to launch an integrated group called 'Made in Emirates'. It includes independent technology-based solutions that allow companies to expand their reach to new horizons and depths in multiple combat environments.
On the Brazilian side, Vice Admiral Marco Antonio Ismael Trovao de Oliveira said: "The signing of the joint development agreement with EDGE marks the beginning of a long-term partnership with a world leader in technology that is expanding its scope of capabilities to enable the goals of Brazil and its allies in the region. Our strong anti-ship missile expertise will be complemented by EDGE's advanced technology and capabilities, allowing us to share knowledge and jointly develop advanced solutions for the global market".
#BeyondPossibilities: Advanced naval platforms that surpass the conventional limits for mission success.#LAAD2023 pic.twitter.com/6nN2maNFsI
— EDGE (@_edgegroup) April 14, 2023
Having secured nearly 20 military services export contracts, EDGE hopes to strengthen its presence on the international stage and become a global hub that attracts more investment, partnerships and generates more revenue. According to the Stockholm International Peace Research Institute (SIPRI), the United Arab Emirates (UAE) has entered the top 25 arms producers in the Middle East, ranking 22nd.
According to the Saudi Arabian Public Investment Fund, which celebrated 14 years since its establishment in January, in addition to the UAE's interest, Saudi Arabia, especially after the successful war in Yemen, has seen the niche market of military drone technology booming and is therefore an interesting asset to invest in. Saudi Arabia's investments may be moving towards larger projects, but its current targets appear modest in a large and competitive drone market. As Saudi Arabia continues to invest hundreds of billions of dollars in various mega-projects, the UAE continues to build a strong position in the global weapons market with EDGE.
Americas Coordinator: José Antonio Sierra.
