Spain and UAE: a strategic defense alliance

25/02/2025

A new horizon in technological cooperation

The relationship between Spain and the United Arab Emirates (UAE) has evolved significantly in recent years, solidifying in key sectors such as defense, technology, and innovation. A recent example of this cooperation is the agreement signed between Indra and EDGE Group. This agreement not only represents a milestone in the military industry but also strengthens Spain’s position as a strategic and reliable partner in the Middle East.

What is Indra?

Indra is one of the leading technology and consulting companies in the fields of defense and digital transformation in Spain. With a presence in over 140 countries, it is a key player in European programs such as the Eurofighter and the Future Combat Air System (FCAS). Its strategy is based on innovation and international expansion, with a strong focus on defense technology, mobility, and cybersecurity.

 

 

What is EDGE Group?

Launched in 2019, EDGE Group is an Emirati conglomerate that brings together more than 25 companies specializing in defense and advanced technology. Its main focus is on manufacturing weapon systems, electronic warfare, artificial intelligence, and cybersecurity. EDGE aims to develop sovereign technological capabilities in the UAE, reducing its dependence on imports and positioning itself as a key player in the global defense industry.

Historically, relations between Spain and the UAE have been marked by energy trade and infrastructure investment. Companies such as ACCIONA have participated in sustainability projects in the UAE, while Moeve has maintained strategic investments in the Emirati energy sector. However, in recent years, there has been a shift towards high-value-added sectors such as defense and digitalization. The agreement between Indra and EDGE is an example of this transformation, establishing a joint venture in Abu Dhabi dedicated to developing and manufacturing next-generation radars.

The agreement, signed in the presence of Spain’s Minister of Defense, Margarita Robles, includes the creation of a new company called PULSE, aimed at becoming a strategic leader in next-generation radar technology. The joint venture will be divided into two entities: one focused on the design, integration, sale, and maintenance of radars, with Indra as the majority shareholder (50.01%), and another focused on the manufacturing of systems in a production plant in Abu Dhabi, with EDGE as the principal shareholder (50.01%).

The project includes an order portfolio of approximately 300 advanced radars for air, land, and sea applications, targeting markets outside NATO and the European Union. The collaboration also involves the transfer of technology from Indra to the UAE, the development of local capabilities, and the training of Emirati talent in engineering and manufacturing.

The UAE’s strategy to diversify its technological partners

The UAE’s interest in strengthening ties with Spain in defense and technology aligns with its strategy to diversify suppliers, reducing its dependence on traditional partners such as the United States, France, or the United Kingdom. This approach is part of the UAE’s Vision 2030, which seeks to strengthen its technological autonomy and establish itself as a global player in the defense industry.

EDGE, in particular, has played a crucial role in this strategy by consolidating more than 25 entities into an integrated defense and security platform. Its goal is to develop sovereign capabilities in areas such as electronic warfare, cybersecurity, and autonomous systems. The collaboration with Indra reinforces this vision by enabling knowledge transfer and the creation of highly skilled jobs in the country.

Additionally, the agreement with Indra will allow EDGE to build a state-of-the-art factory in Abu Dhabi, equipped with advanced laboratories and research infrastructure that will drive the development of next-generation radars and strengthen the country’s industrial capacity in this sector.

Opportunities and challenges for Spain

For Spain, this alliance represents a strategic opportunity on multiple fronts. On one hand, it strengthens the presence of its technology industry in the Middle East and opens new business opportunities in non-traditional markets. On the other hand, it deepens bilateral relations with a key country in the region, creating a bridge for future collaborations in sectors such as cybersecurity, artificial intelligence, and sustainable mobility.

However, such agreements also present challenges. Spain must balance its growing cooperation with the UAE with its commitments within the EU and NATO, particularly regarding the export of defense technologies. Moreover, it is crucial to ensure that technology transfers occur within a framework that protects national strategic and security interests.

An expanding relationship

The agreement between Indra and EDGE is just one reflection of the broader relationship between Spain and the UAE, which continues to strengthen. Spanish companies have already made their mark on landmark projects in the Gulf country, from infrastructure to renewable energy. This new step in technological cooperation confirms that bilateral ties have evolved into a more strategic and mutually beneficial partnership.

As the world faces rapid geopolitical and technological changes, alliances like this will be key to strengthening Spain’s presence in emerging global markets and consolidating its position as a reliable partner in the Gulf region.

Image source: INDRA and EDGE Group press release

Are you interested in expanding your business in the UAE?

At ACK3, we offer customized solutions to help your team overcome the challenges of entering emerging markets like the UAE. Learn more and ensure your team’s security through the following link: