Anduril & UAE’s Edge Unleash Next-Gen AI Drones: The Future of Autonomous Warfare

Silicon Valley meets Middle East defense in a high-stakes tech arms race.

AI Takes Flight—Literally

Anduril Industries just partnered with UAE’s Edge Group to mass-produce drones that think for themselves. No pilots, no hesitation—just algorithms making split-second combat decisions. The Pentagon’s watching closely.

Why This Shakes Up Global Power

Autonomous swarms could rewrite the rules of modern warfare. Imagine drone fleets outmaneuvering human opponents at Mach 5—while hedge funds short defense stocks based on outdated battlefield models.

The Dark (Funding) Side

VC-backed defense tech now competes directly with legacy contractors. Sand Hill Road’s latest bet? That AI can outperform billion-dollar fighter jets at 1/100th the cost. Wall Street still thinks defense = boomer stocks.

One thing’s certain: the era of AI-powered combat just got real. And the market? Still pricing warfare like it’s 1991.

TLDRs;

• Anduril and UAE’s Edge will co-build AI-powered Omen drones in Abu Dhabi with major investments and 2028 production goals.
• Export-control approvals from the U.S. will heavily influence the joint venture’s timeline and technology transfer process.
• The UAE plans to acquire 50 Omen drones as part of expanding autonomous defense infrastructure.
• Rising regional demand for counter‑UAS systems underscores the strategic significance of this AI drone initiative.

The United States’ defense technology firm Anduril Industries and the UAE’s state-owned Edge Group have entered a landmark partnership to build a new generation of AI-powered autonomous drones in Abu Dhabi.

The collaboration, structured as a new joint venture, marks a strategic step for both sides as the UAE accelerates investments in unmanned systems and the United States deepens selective cooperation with trusted partners on emerging military technologies.

At the heart of the partnership is the Omen, a hybrid drone designed to take off like a helicopter but cruise like a fixed-wing aircraft. The aircraft will be manufactured at a 50,000‑square‑foot research facility in Abu Dhabi, where development, testing, and system integration are set to take place over the coming years.

The UAE has already committed to purchasing the first 50 units, signaling strong domestic demand even before the drone reaches full-scale production.

A Drone Built for Complex Missions

The Omen drone is engineered to carry multiple payloads, including sensors, surveillance systems, and even torpedo‑class munitions.

Its combination of vertical takeoff capabilities and long-range fixed‑wing performance positions it as a versatile solution for coastal surveillance, critical infrastructure defense, and high-end military missions.

Edge Group will inject nearly US$200 million into the initiative, while Anduril has already invested an estimated US$850 million in foundational technology connected to the Omen platform and its autonomous operating system. Production is targeted for completion by late 2028, although international regulatory approvals will heavily influence that timeline.

Anduril is building a 50,000-sq-ft R&D facility in Abu Dhabi, our first operational footprint in the Middle East.

The UAE has finalized an acquisition of 50 Omen systems, creating a guaranteed production base.

Delivering these capabilities to the Gulf will accelerate critical… pic.twitter.com/4aQJPxBKkE

— Anduril Industries (@anduriltech) November 13, 2025

Regulatory Hurdles Could Slow the Build

One of the biggest variables in the project is the U.S. export‑control framework. The drone relies on Anduril’s Lattice AI, a software suite that allows multiple autonomous aircraft to coordinate missions simultaneously. Transferring this technology to the UAE requires clearance from the U.S. Department of State under the International Traffic in Arms Regulations (ITAR).

A new interim rule taking effect in September 2025 will also revise the U.S. Munitions List, potentially changing how unmanned aircraft and related components are classified. These updates may add additional licensing layers, depending on how regulators categorize foreign advanced military aircraft.

Because of this, the joint venture’s production roadmap through 2028 is expected to evolve in response to ongoing decisions from the Directorate of Defense Trade Controls (DDTC).

Rising Demand Across the UAE’s Defense and Security Sector

The timing of the Anduril‑Edge collaboration coincides with the UAE’s broader expansion of its unmanned aircraft systems (UAS) capabilities.

UMEX 2024, the country signed contracts worth Dh970 million (US$264 million) with various suppliers, including Chinese C-UAS provider CTEC International. Edge separately announced a Ministry of Defence award covering its SKYSHIELD and NAVCONTROL‑G solutions.

Defense contractors, radar suppliers, and systems integrators report growing demand for counter‑UAS (C‑UAS) technologies across UAE airports, energy facilities, government buildings, and major event venues. The UAE has also allocated Dh874 million for multi‑year support, training, and operations for uncrewed systems, as well as new contracts for handheld anti‑UAV tools.