The UAE EDGE Group exhibited a number of weapons and equipment models at the 15th Latin American Defense Exhibition. The picture shows the "Shadow" series of drones.

  Ajban 442A anti-drone armored vehicle.

  MANSUP anti-ship missile.

  According to foreign media reports, in early April, at the 15th Latin American Defense Exhibition held in Rio de Janeiro, Brazil, the UAE EDGE Group signed several defense contracts and letters of intent to cooperate with Brazil to further deepen the bilateral cooperation relationship. Recently, the head of the group said in an interview with the media that he would refer to the model of cooperation with Brazil to accelerate the expansion of the defense markets of other Latin American countries.

  Seeking strategic breakthroughs

  In 2019, the UAE government integrated 25 state-owned and private defense enterprises to form the EDGE Group, aiming to build a globally competitive defense industry cluster. In 2023, with the UAE signing a memorandum of defense cooperation between Brazil, the military cooperation process between the two sides accelerated. Taking this opportunity, EDGE Group established Brazil as its strategic fulcrum in Latin America and steadily expanded the regional market through a series of measures.

  Establish strategic partnerships. In June 2023, EDGE Group and the Brazilian Navy signed a "National Anti-Ship Missile" cooperation agreement to become its strategic partner; in April this year, the two sides signed a strategic letter of intent for anti-UAV system, promising to form a joint working team and establish a stable cooperative relationship.

  Implement capital strategic layout. EDGE Group has deeply integrated into the local market through equity acquisitions. In September 2023, the group acquired 50% of the shares of SIATT, a manufacturer of Brazil's smart weapons and high-tech systems; in May 2024, it acquired 51% of the shares of CONDOR, a leading company in Brazil's African deadly technology, and directly participated in local market operations.

  Actively participate in bidding projects. EDGE Group is engaged in competition in Brazil's defense field. In December 2024, the group signed a letter of intent for cooperation between the Brazilian Ministry of Defense to provide Brazil with security communication systems, providing security smart devices, satellite communications and command and control software. In February this year, it signed a contract with the Brazilian Ministry of Justice with a total price of about 45 million reais (about 7.64 million US dollars) to be responsible for upgrading the security facilities of the judicial system.

  After the progress made in the Brazilian market, Argentina became the next key target of EDGE Group. In recent years, Argentina has accelerated the modernization of weapons and equipment, with the national defense budget increasing by 15% in 2024, of which the funding in the field of network and information warfare increased by more than 50%. The electronic warfare field is one of the strengths of EDGE Group. In order to grasp the Argentine market, the group's CEO Hmed went to Buenos Aires on April 15 to meet with the Argentine Minister of Defense and said that "he valued Argentina's higher education resources very much and planned to establish factories and recruit personnel in Argentina." The outside world expects that EDGE Group will cooperate with Argentina in the fields of armored vehicles, light weapons and electronic warfare systems.

  In addition, the group plans to expand its business to more Latin American countries such as Chile and Paraguay.

  Two-way demand-driven

  Foreign media pointed out that the cooperation between EDGE Group and Latin American countries is based on two-way needs and has a high degree of compatibility.

  From the perspective of EDGE Group, the Latin American defense market has strategic value.

  First, promote international development. Data shows that as of December 2024, the group's total international orders exceeded US$2.1 billion, accounting for 42% of its total orders, highlighting the importance of overseas markets to its revenue. At present, there is a strong demand for upgrading the main combat equipment of Latin America, making the region an important sector in the global emerging defense market.

  Second, support systematic construction. As a country with relatively late start in the construction of the national defense industry, although the UAE has made progress in cutting-edge technology, its industrial system needs to be improved. Latin American countries such as Brazil and Argentina have strong strength in basic industries such as mechanical processing and material production. The cooperation between the two sides will help EDGE Group build a complete industrial ecosystem chain.

  Third, achieve the goal of technological breakthroughs. For a long time, the UAE has relied mainly on technology introduction and corporate mergers and acquisitions to promote the rapid development of defense construction. However, with the changes in the international situation, European and American countries impose stricter restrictions on exports of key technologies, which puts the UAE in terms of technology acquisition challenges. With the early process of defense independence, Latin American countries have a relatively independent intellectual property system in the fields of armored vehicles, transport aircraft, submarines and missiles, which can help EDGE Group achieve technological breakthroughs.

  From the perspective of Latin American countries, cooperation with EDGE Group has many benefits.

  On the one hand, the UAE can provide financial support in the short term. According to foreign media reports, since the establishment of an office in Brazil in 2023, EDGE Group has invested about 3 billion reais in Brazil, effectively promoting the development of the local defense industry. In the "National Anti-Ship Missile" project, the UAE has pledged to invest Dh1.1 billion (about US$300 million) to promote the rapid implementation of the project, with the investment amount twice that of Brazil.

  On the other hand, the UAE can provide technical support in high-end fields. Latin American countries generally lack core technologies in high-end and sophisticated fields, and EDGE Group can fill this gap. For example, in the "National Anti-Ship Missile" project, the anti-electromagnetic interference technology provided by EDGE Group effectively enhanced Brazil's electronic warfare capabilities.

  Opportunities and challenges coexist

  Expert analysis pointed out that EDGE Group accelerates its expansion of the Latin American defense market is not only a development need to enhance its international competitiveness and expand its market share, but also in line with the UAE's national strategy of "building a key partner in global defense solutions." Latin American countries have long adhered to the diversified development strategy, providing the UAE with more cooperation opportunities and broad market space.

  The prospects for future cooperation between the two sides are good, but there are still some challenges. On the one hand, whether the cutting-edge technology provided by EDGE Group to Latin American countries can reach the world's leading level as it promotes remains to be verified; on the other hand, the procurement plans of Latin American countries are easily affected by factors such as domestic political situation and economic development, which will add variables to subsequent cooperation. (Wang Changfan)

[Editor in charge: Wang Jinzhi]