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.

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.