Tawazun, AD Ports partner on new defense manufacturing hub in Abu Dhabi

First a defense fund — now a defense freezone: The UAE is putting all its eggs in the defense basket now, with the goal of bringing defense manufacturing closer to home at a time when a diverse defense repertoire is critical.

UAE port operator and logistics firm AD Ports and defense and security authority Tawazun are now planning to develop the Al Selmiyyah Defense Industrial Freezone in Abu Dhabi to anchor defense manufacturing capabilities within one ecosystem, state news agency Wam reports.

The strategy is twofold: Bring more global defense giants to the UAE and foster partnerships between national companies and international firms to build local capabilities in the sector.

Who’s doing what? Tawazun will lead on regulatory and licensing frameworks, while AD Ports Group will oversee master planning, land use, and infrastructure development. The development timeline is still not clear.

Background

Defense has climbed high on policymakers’ agenda as of late, as the Iran war has made it a matter of strategic importance for the country, both to protect its residents and infrastructure, and to reaffirm its “safe haven” image. Officials are currently also weighing a dedicated investment vehicle and pushing localization agreements across the sector.

Global players already have the UAE on their radar: US defense and aerospace firm Lockheed Martin is setting up a cybersecurity center of excellence in the UAE.

Our take

The UAE already operates what experts have told us is “probably the most mature layered defense system across the GCC,” integrating platforms like Thaad, Patriot, and shorter-range C-UAS defenses. The major localization push has also been years in the making, with the country inking defense partnerships with countries and firms across the world, so none of this is unprecedented.

It has been clear for a while now that the UAE won’t be content with buying defense technology and equipment — although it still relies on partners like the US and South Korea for those — but will want to own it and, eventually, even export it.

Procurement policy is reinforcing the shift: The UAE has already embedded some of the world’s most aggressive localization requirements into defense procurement, with major contracts typically requiring 60% industrial participation, experts told us previously.