Thales Accelerates Gulf Defence Industrial Expansion
French defence and technology group Thales is deepening its strategic footprint across the Gulf by advancing plans to build a radar production facility in Saudi Arabia and an AI research centre in the UAE. At the Paris Airshow, Pascale Sourisse, senior executive vice‑president of international development at Thales, confirmed discussions on expanding a joint venture with Saudi Arabian Military Industries beyond radar systems to encompass broader air‑defence and communications technologies in the kingdom.
This marks a notable evolution in Gulf nations' ambition to embed themselves within global defence and technology supply chains. Saudi Arabia, the largest military spender in the Middle East in 2024 and seventh globally, logged outlays of approximately US $80.3 billion, sustained largely by strategic efforts to diversify its economy under Vision 2030. Thales's radar factory would join several localisation initiatives already in motion, including radars, missile systems and counter‑drone technologies pursued by SAMI and its partners.
ADVERTISEMENT
In the UAE, Thales Emarat Technologies has committed to a dedicated factory producing its Ground Master air‑surveillance radar series under a cooperation agreement with Tawazun Council, struck in May. Set to be operational by 2027, the facility will handle assembly, testing and qualification for both domestic and export markets. The UAE deal includes broader vendor integration and talent development, with plans to deepen partnerships across the supply chain and nurture Emirati experts in aerospace and defence technologies.
In parallel, Thales is pursuing the establishment of a cortAIx artificial intelligence research hub in Abu Dhabi—its first in the Middle East. With existing centres in Singapore, France, Canada and the UK, the UAE facility will co‑develop AI applications within defence systems, in close collaboration with end users such as the UAE Armed Forces. Sourisse noted that the centre aims to generate actionable insights from equipment data, aligning directly with client priorities on the ground.
Strategically, Gulf nations are building sovereign industrial frameworks that reduce dependency on foreign armaments and strengthen regional autonomy. Saudi aims to localise half of its military procurement by 2030, supported by SAMI's network of joint ventures with global defence firms, including Boeing, Lockheed Martin, Raytheon and Thales. Likewise, the UAE is enhancing its industrial base via Tawazun Council and EDGE Group partnerships focused on smart weapons, missiles, radar systems and electro‑optic platforms.
Thales stands to benefit significantly from these developments. Its factory investments in radar production and AI research secure long-term revenue streams, embed the group in critical national supply chains and grant access to lifecycle support contracts. An Ainvest analysis estimates the UAE radar factory alone could cost up to US $500 million, signalling both scale and investor confidence.
Regionally, the spread of these initiatives could serve as a template for neighbouring states. With Gulf states increasingly aligned on defence self‑sufficiency, Thales may replicate its model with other partners beyond the UAE and Saudi, potentially in countries such as Qatar and Egypt.
Academic research also underscores this growing industrial sophistication. Work published on AI‑augmented radar engineering highlights the utility of digital twin frameworks and machine‑learning algorithms in enhancing radar adaptability and performance, suggesting that Thales's cortAIx model reflects broader cutting‑edge trends.
Commercially, localisation allows Gulf players to streamline supply‑chain logistics, support continuous operations—even during geopolitical tensions or sanctions—and catalyse export opportunities. Regionally, Thales's UAE‑based radar factory and proposed Saudi facility fit within a wider surge in Gulf defence industrialisation, spanning missile systems, drones, counter‑measures, air‑defence networks and electronic‑warfare platforms.
End‑user demand for air surveillance, weapon systems, comms equipment and counter‑drone technologies has intensified. Thales's engagements align with this dynamic, suggesting ongoing growth in contract flow for its Gulf‑based defence facilities. Industry experts note that embedding AI within radars and systems will enhance detection accuracy and responsiveness, factors that both Gulf militaries and global buyers find increasingly compelling.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a minute ago
- Zawya
Africa's minerals are being bartered for security: why it's a bad idea?
A US-brokered peace deal between the Democratic Republic of Congo (DRC) and Rwanda binds the two African nations to a worrying arrangement: one where a country signs away its mineral resources to a superpower in return for opaque assurances of security. The peace deal, signed in June 2025, aims to end three decades of conflict between the DRC and Rwanda. A key part of the agreement binds both nations to developing a regional economic integration framework. This arrangement would expand cooperation between the two states, the US government and American investors on 'transparent, formalized end-to-end mineral chains'. Despite its immense mineral wealth, the DRC is among the five poorest countries in the world. It has been seeking US investment in its mineral sector. The US has in turn touted a potential multi-billion-dollar investment programme to anchor its mineral supply chains in the traumatised and poor territory. The peace that the June 2025 deal promises, therefore, hinges on chaining mineral supply to the US in exchange for Washington's powerful – but vaguely formulated – military oversight. The peace agreement further establishes a joint oversight committee – with representatives from the African Union, Qatar and the US – to receive complaints and resolve disputes between the DRC and Rwanda. But beyond the joint oversight committee, the peace deal creates no specific security obligations for the US. The relationship between the DRC and Rwanda has been marred by war and tension since the bloody First (1996-1997) and Second (1998-2003) Congo wars. At the heart of much of this conflict is the DRC's mineral wealth. It has fuelled competition, exploitation and armed violence. This latest peace deal introduces a resources-for-security arrangement. Such deals aren't new in Africa. They first emerged in the early 2000s as resources-for-infrastructure transactions. Here, a foreign state would agree to build economic and social infrastructure (roads, ports, airports, hospitals) in an African state. In exchange, it would get a major stake in a government-owned mining company. Or gain preferential access to the host country's minerals. We have studied mineral law and governance in Africa for more than 20 years. The question that emerges now is whether a US-brokered resources-for-security agreement will help the DRC benefit from its resources. Based on our research on mining, development and sustainability, we believe this is unlikely. This is because resources-for-security is the latest version of a resource-bartering approach that China and Russia pioneered in countries such as Angola, the Central African Republic and the DRC. Resource bartering in Africa has eroded the sovereignty and bargaining power of mineral-rich nations such as the DRC and Angola. Further, resources-for-security deals are less transparent and more complicated than prior resource bartering agreements. DRC's security gaps The DRC is endowed with major deposits of critical minerals like cobalt, copper, lithium, manganese and tantalum. These are the building blocks for 21st century technologies: artificial intelligence, electric vehicles, wind energy and military security hardware. Rwanda has less mineral wealth than its neighbour, but is the world's third-largest producer of tantalum, used in electronics, aerospace and medical devices. For almost 30 years, minerals have fuelled conflict and severe violence, especially in eastern DRC. Tungsten, tantalum and gold (referred to as 3TG) finance and drive conflict as government forces and an estimated 130 armed groups vie for control over lucrative mining sites. Several reports and studies have implicated the DRC's neighbours – Rwanda and Uganda – in supporting the illegal extraction of 3TG in this region. The DRC government has failed to extend security over its vast (2.3 million square kilometres) and diverse territory (109 million people, representing 250 ethnic groups). Limited resources, logistical challenges and corruption have weakened its armed forces. This context makes the United States' military backing enormously attractive. But our research shows there are traps. What states risk losing Resources-for-infrastructure and resources-for-security deals generally offer African nations short-term stability, financing or global goodwill. However, the costs are often long-term because of an erosion of sovereign control. Here's how this happens: - certain clauses in such contracts can freeze future regulatory reforms, limiting legislative autonomy - other clauses may lock in low prices for years, leaving resource-selling states unable to benefit when commodity prices surge - arbitration clauses often shift disputes to international forums, bypassing local courts - infrastructure loans are often secured via resource revenues used as loan security. This effectively ringfences exports and undermines sovereign fiscal control. Examples of loss or near-loss of sovereignty from these sorts of deals abound in Africa. For instance, Angola's US$2 billion oil-backed loan from China Eximbank in 2004. This was repayable in monthly deliveries of oil, with revenues directed to Chinese-controlled accounts. The loan's design deprived Angolan authorities of decision-making power over that income stream even before the oil was extracted. These deals also fragment accountability. They often span multiple ministries (such as defence, mining and trade), avoiding robust oversight or accountability. Fragmentation makes resource sectors vulnerable to elite capture. Powerful insiders can manipulate agreements for private gain. In the DRC, this has created a violent kleptocracy, where resource wealth is systematically diverted away from popular benefit. Finally, there is the risk of re-entrenching extractive trauma. Communities displaced for mining and environmental degradation in many countries across Africa illustrate the long-standing harm to livelihoods, health and social cohesion. These are not new problems. But where extraction is tied to security or infrastructure, such damage risks becoming permanent features, not temporary costs. What needs to change Critical minerals are 'critical' because they're hard to mine or substitute. Additionally, their supply chains are strategically vulnerable and politically exposed. Whoever controls these minerals controls the future. Africa must make sure it doesn't trade that future away. In a world being reshaped by global interests in critical minerals, African states must not underestimate the strategic value of their mineral resources. They hold considerable leverage. But leverage only works if it is wielded strategically. This means: - investing in institutional strength and legal capacity to negotiate better deals - demanding local value creation and addition - requiring transparency and parliamentary oversight for minerals-related agreements - refusing deals that bypass human rights, environmental or sovereignty standards. Africa has the resources. It must hold on to the power they wield. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
a minute ago
- Zawya
Sterling stronger, supported by global market optimism
Sterling firmed against the dollar and the euro on Wednesday helped by the optimism across global markets after the U.S. and Japan struck a trade deal which boosted stocks and currencies, such as the pound, which can move with global growth expectations. The pound was last marginally higher against the dollar at $1.3540, its highest in nearly two weeks, and working its way back towards early July's near four-year top of $1.3787. It strengthened more against the euro, which was down 0.24% at 86.62 pence. The big story for markets on Wednesday was a trade deal between the United States and Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. That boosted stocks globally, and other risk-friendly currencies such as the Australian and New Zealand dollars, as well as the pound. While the pound is still down against both the euro and dollar in July, some analysts see better days for it ahead, as markets look past the volatility in Britain's bond market at the start of the month caused by fiscal concerns, which weighed on the currency. BofA analysts said in a note the third quarter promised to be better for the British economy. "We feel the conditions are now in place for a bounce in GBP through the summer months," they said. "We do not understate the fragile state of UK public finances but continue to be struck by how markets are willing to find the UK guilty of fiscal breaches before being (given) the opportunity of proving innocence." They also flagged that rate differentials were moving in the pound's favour, and that "tariff attrition in other countries will eventually materialise." Thursday's business activity data, and Friday's retail sales data will give the latest indications of the health of the British economy. (Reporting by Alun John Editing by Tomasz Janowski)
Emirates 24/7
8 minutes ago
- Emirates 24/7
Space42 secures $695.5 million facility to fund next-generation UAE satellites
Space42 today announced the signing of a US$695.5 million Export Credit Agency (ECA)-backed financing facility to fund the development of its next-generation geostationary satellites, Al Yah 4 and Al Yah 5. The financing represents a pivotal step in Space42's strategy to establish critical connectivity capabilities across multiple orbits. The facility, arranged by Crédit Agricole CIB, Santander CIB, Societe Generale, and Natixis and backed by Bpifrance Assurance Export, demonstrates the company's continued appeal to leading international banks and will fund the satellites scheduled for launch in 2027 and 2028. The facility provides Space42 with cost-effective, long-term financing aligned with its satellite development timeline, whilst strengthening the company's liquidity position to support future growth initiatives. Andrew Cole, Chief Financial Officer of Space42, said, "The Al Yah 4 and Al Yah 5 program is underpinned by a 17-year, $5.1 Billion Government contract commencing in 2026 and advances our goal to become the trusted leader in secure connectivity by providing multi-path critical connectivity solutions. This strategic pillar focuses on enhancing secure communication capabilities across defense and civil domains through multi-orbit satellite networks that ensure uninterrupted connectivity for mission-critical applications. The ECA financing structure optimises our cost of funding and provides increased financial flexibility to execute our growth agenda." Al Yah 4 and Al Yah 5 feature software-defined architecture with fully flexible payloads that can be reconfigured in orbit. This technology enables real-time optimisation of coverage, bandwidth, and frequency allocation to meet evolving operational requirements across the Middle East, Africa, Europe, and Asia. The satellites will complement and eventually replace Al Yah 1 and Al Yah 2, launched in 2011 and 2012 respectively.
