UAE, France Lock In Rafale F5 Deal After Iranian Attacks

The United Arab Emirates and France signed an intergovernmental agreement on cooperation on the Dassault Rafale F5 standard within their French and Emirati Rafale programmes during French President Emmanuel Macron’s visit to Abu Dhabi. The deal came against the backdrop of the Iran war and the uncertainty it has left across the Gulf.

The timing isn’t subtle. The agreement deepens defence cooperation amid geopolitical uncertainty triggered by the Iran war. Other accords signed during the visit set out technical and financial specifications for industrial cooperation on the future of combat aviation, strategic autonomy in defence and reducing dependence on third countries as part of a strategic defence partnership.

The Security Picture

For the Emirates, this isn’t abstract. During the war, Edge Group played a key role in countering Iranian drones directed at the UAE. The conglomerate is the vehicle through which the UAE seeks to localise defence manufacturing. Established in 2019, Edge now includes more than 35 companies and develops advanced technology for weapons systems, cyber protection and electronic warfare.

Macron visited an Edge industrial site. The group has several industrial partnerships with French companies and recently signed a cooperation agreement with the French Defence Procurement Agency.

The Elysee Palace said Macron’s visit “reflects a shared commitment to strengthening industrial and technological co-operation and developing joint projects.” The French Defence Ministry also signed an agreement with the UAE to improve interoperability between their armed forces, strengthen industrial resilience and advance cooperation in future-oriented technology, including artificial intelligence and space.

Abu Dhabi is preparing to host the International Defence Exhibition and Conference, or Idex, in January. Hundreds of defence companies from around the world are expected to attend and display high-tech weapons.

The Gulf Under Fire

Macron then travelled to Bahrain. There, French Foreign Minister Jean-Noel Barrot and Bahrain’s counterpart, Abdullatif Al Zayani, agreed to strengthen cooperation on the “peaceful uses of nuclear energy,” the French government said. France and Bahrain signed a defence cooperation agreement in February during a visit to Paris by Bahrain’s King Hamad bin Isa.

The UAE and Bahrain were among the Gulf countries France helped protect with air-defence and anti-drone assets during Iranian attacks this year. France also worked closely with Bahrain at the UN Security Council to seek a diplomatic solution to Iran’s blockade of the Strait of Hormuz. Tehran has shown it will pull that kind of coercive lever when it believes it can.

Beyond Weapons: Money and Technology

The security track runs alongside an economic one. In the presence of Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, and Macron, the UAE and France signed preliminary agreements in energy, artificial intelligence and advanced technology.

France’s AI start-up AMI Labs signed three agreements with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Abu Dhabi’s G42 and computing company Analog. MBZUAI will focus on AI research and development with AMI Labs. G42 aims to establish a framework for strategic cooperation in cloud-computing infrastructure and AI models, while Analog and AMI Labs will explore integrating AI models into robotics and physical AI applications.

In energy, Adnoc Gas and Schneider Electric signed an initial pact to assess advanced technologies and improve operational efficiency. Adnoc Refining and Technip Energies signed two contracts covering a refining-capacity enhancement project and a sustainable aviation-fuel project.

At the UAE-France Business Dialogue at Qasr Al Watan, Sheikh Khaled said bilateral cooperation was essential “for ensuring reliable energy supplies and building resilience supply chains amid changes in the global economy.”

The commercial ties are substantial. More than 600 French businesses operate in the UAE, and France exports $4 billion worth of goods annually to the UAE, according to the Ministry of Foreign Affairs website. Mubadala Investment Company signed an initial agreement with Bpifrance, committing to invest €1 billion ($1.12 billion) in the LAC1 Fund, a €10 billion fund managed by Bpifrance. Five years ago, UAE-based Gulf Islamic Investments invested $301 million in Altais Towers.

Why This Matters: Gulf states struck by Iranian drones this year aren’t waiting for security guarantees to arrive from elsewhere. They’re buying advanced fighters, localising weapons production and widening their list of defence partners. Edge’s role against Iranian drones serves as proof of concept.

The emphasis on strategic autonomy and reducing dependence on third countries signals that Iran’s attacks and its Hormuz blockade have pushed Arab capitals toward building deterrence of their own. From a security standpoint, that means a Gulf increasingly equipped to blunt Iranian pressure, with European partners filling roles once assumed by others.