UAE signs deal to build global defence manufacturing hub in Abu Dhabi

Abu Dhabi: The UAE announced on Monday that it has taken a step towards developing a global defence manufacturing hub through a new partnership with South Korea’s LIG Defence and Aerospace (LIG D&A).

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Tawazun Council for Defence Enablement and LIG D&A said it has signed a memorandum of understanding (MoU) to explore cooperation to build defence and security industry capabilities in the UAE.

The agreement focuses on establishing a locally incorporated entity, referred to as a “landed company”, as part of efforts to develop industrial capacity within the country.

The MoU was signed on the sidelines of Make it in the Emirates 2026, held at the ADNEC Centre Abu Dhabi.

Under the agreement, both sides will work together across areas including research and development, manufacturing, maintenance support and supply chain integration.

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“By attracting leading global companies to establish a presence in the UAE through a landed company structure, we are deepening industrial integration, strengthening national capabilities, and reinforcing the UAE's position on the global defence map,” said Shareef Hashim Al Hashmi, Director General, Industry Development of Tawazun.

The agreement focuses on strengthening defence manufacturing in the UAE, while supporting long-term cooperation in areas such as maintenance, repair and overhaul, and supply chain development.

Gunhyuk Lee, MENA President, LIG D&A, said, “The UAE’s defence industrial ecosystem offers a compelling environment for global manufacturers to establish, scale, and innovate."

"This MoU with Tawazun marks an important step in our commitment to contributing to the UAE's national defence industrial growth, and we look forward to developing this partnership into a long-term and impactful collaboration," he added.

The UAE has accelerated defence partnerships in recent months, signing a series of high-value agreements with several global companies. These include a landmark deal with Embraer for up to 20 C-390 military transport aircraft, with 10 confirmed and options for 10 more, estimated at around $1 billion.

Earlier in 2026, the country also signed defence contracts worth about Dh879.8 million at UMEX & SimTEX covering unmanned systems and advanced aircraft.

In 2025, Tawazun secured deals worth Dh18 billion ($4.9 billion) during the Dubai Airshow, while a separate partnership between EDGE Group and Leonardo is set to establish a joint venture in the UAE to develop advanced defence systems.