Defense tech firm Anduril, UAE's Edge to build AI drones in Abu Dhabi

US-based Anduril and UAE state-owned Edge Group will jointly develop AI-powered drones in Abu Dhabi through a new joint venture.

The Omen drone, which can take off like a helicopter and fly like a plane, will be produced at a 50,000-square-foot research center.

The UAE plans to acquire the first 50 units.

Edge is investing nearly US$200 million in the project, while Anduril has previously invested US$850 million in related technology.

The Omen drone can carry various payloads, including torpedoes, and is expected to reach production by the end of 2028.

🧠 Food for thought

Implications, context, and why it matters.

Progress depends on U.S. Department of State (DoS) approval to transfer Anduril’s Lattice AI (software that coordinates multiple autonomous aircraft) plus advanced unmanned aerial system (UAS) tech to the United Arab Emirates (UAE) under the International Traffic in Arms Regulations (ITAR), with Directorate of Defense Trade Controls (DDTC) licensing shaping the 2028 build plan 1.
An interim final rule takes effect on September 15, 2025 2. It revises the ITAR and the U.S. Munitions List (USML) with coverage for MQ-25 plus RQ-170 unmanned aerial vehicles (UAVs), new definitions for foreign advanced military aircraft, plus guidance on specially designed equipment that could shift jurisdiction or licensing.
At UMEX 2024 in Abu Dhabi, the UAE signed Dh970 million ($264.3 million) in C-UAS contracts, including deals with Chinese supplier CTEC International 3. EDGE announced a Ministry of Defence award for SKYSHIELD plus NAVCONTROL-G, with price and schedule undisclosed 4.

Defense tech firms outside the Anduril and EDGE joint venture see demand as long-range autonomous drones spread in the UAE. Targets include airports, energy facilities, government sites, plus major events.
The UAE awarded Dh874 million for five-year uncrewed systems support and training, plus Dh10 million for hand-held anti-UAV weapons 3. The spend continues past 2028.
Systems integrators (firms that design plus deploy multi-vendor solutions) and component suppliers offering Global Navigation Satellite System (GNSS) jamming, radio frequency (RF) direction-finding (locating a signal’s source), or automated engagement should target 2025 to 2026 UAE tenders as the military builds defenses against more autonomous aerial threats.