UAE and France sign Rafale F5 deal, expand defence, AI and energy cooperation

The United Arab Emirates and France have concluded a series of bilateral agreements spanning defence, artificial intelligence and energy, as the two countries seek to reinforce their partnership during the geopolitical instability caused by the war with Iran.

Defence and Security Agreements

During French President Emmanuel Macron’s visit to Abu Dhabi, the two governments signed an intergovernmental accord for cooperation on the Dassault Rafale F5 standard, linking both countries’ Rafale programmes. The accords also address technical and financial specifications for industrial collaboration on future combat aviation, as the UAE and France deepen their defence ties.

Another agreement focuses on strategic autonomy in defence and reducing reliance on third parties, forming part of a broader strategic defence partnership. The deals come as the UAE, the Arab world’s second-largest economy, works to localise defence manufacturing through Edge Group, a defence conglomerate comprising more than 35 companies. Edge has played a critical role in intercepting Iranian drones targeting the UAE during the conflict. During his visit, Macron toured an Edge Group industrial facility. Edge, established in 2019, develops advanced technology for weapons systems, cyber protection and electronic warfare. The group maintains several industrial alliances with French firms and recently signed a cooperation agreement with the French Defence Procurement Agency.

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

The agreements were announced as Abu Dhabi prepares to host the International Defence Exhibition and Conference (Idex) in January, an event expected to draw hundreds of global defence companies showcasing the latest high-tech weaponry. Following his stay in Abu Dhabi, Macron travelled to Bahrain. There, French Foreign Minister Jean-Noel Barrot and his Bahraini counterpart Abdullatif Al Zayani agreed to enhance cooperation on the peaceful uses of nuclear energy, according to the French government. France and Bahrain signed a defence cooperation agreement in February during a visit to Paris by Bahrain’s King Hamad bin Isa. Both the UAE and Bahrain were among Gulf countries France assisted with air defence and anti-drone assets during Iranian attacks this year. France has also worked closely with Bahrain at the UN Security Council to seek a diplomatic resolution to Iran’s blockade of the Strait of Hormuz.

Energy, AI and Advanced Technology

The UAE and France also signed new preliminary agreements in energy, artificial intelligence and advanced technology, aiming to strengthen investment and economic ties. The deals were signed in the presence of Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, and President Macron in Abu Dhabi.

In the AI and advanced technology field, three agreements were concluded with French AI start-up AMI Labs to boost research and technological cooperation and explore new applications across key sectors, according to the Abu Dhabi Media Office. The agreements involve Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Abu Dhabi’s G42 and computing company Analog. MBZUAI will focus on enhancing cooperation with AMI Labs in AI research and development, while G42 aims to establish a framework for strategic collaboration in cloud computing infrastructure and AI models. Analog’s deal with AMI Labs concentrates on exploring opportunities to integrate AI models into robotics and physical AI applications, creating new avenues for developing intelligent systems and expanding their use in industrial and tech sectors.

In the energy sector, Adnoc Gas and Schneider Electric signed an initial agreement to assess advanced technologies and identify opportunities to improve operational efficiency and enhance the performance of energy systems. Additionally, Adnoc Refining and Technip Energies signed two contracts covering a refining capacity enhancement project and a sustainable aviation fuel project. Speaking at the UAE-France Business Dialogue at Qasr Al Watan in Abu Dhabi, Sheikh Khaled emphasised the importance of bilateral cooperation in ensuring reliable energy supplies and building resilient supply chains amid global economic changes.

The UAE and France enjoy strong economic ties, with more than 600 French companies operating in the UAE and $4 billion worth of goods exported annually from France to the UAE, according to the Ministry of Foreign Affairs website. UAE investments in France are also growing. In 2021, UAE-based Gulf Islamic Investments invested $301 million in Altais Towers, while Abu Dhabi’s 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.