EDGE Group, the United Arab Emirates' state-owned defense and technology giant, has signed a record-breaking $2.45 billion deal with the Kuwait Ministry of Defense for the supply of eight FALAJ-3 class missile boats. Announced on June 3, the contract is the largest naval shipbuilding export ever signed in the region and among the most valuable globally. It covers not only the design and construction of the 62-meter (203-foot) vessels, but also sea trials, delivery and long-term integrated support, signaling EDGE’s growing capacity to deliver comprehensive naval programs.

Beyond its scale, the deal carries far-reaching strategic implications. It underscores the UAE’s ambitions to become a global defense exporter and EDGE’s emergence as a leading force in regional and international arms markets. On a broader perspective, the contract also signals Kuwait’s increasing emphasis on littoral defense capabilities and the deepening ties between two Gulf allies amid rising maritime security concerns.

EDGE’s export strategy comes of age

While not the first instance of intra-Gulf defense trade, the Kuwait-EDGE agreement stands out as the largest and most strategically significant military export between GCC states to date. The UAE has been a long-standing supplier of naval assets to Kuwait. In 2015, Abu Dhabi Ship Building (ADSB) — now a subsidiary of EDGE — delivered eight landing crafts, two 64-meter (209-foot) landing ships and five 16-meter (52-foot) sea keepers to Kuwait. Notably, this contract laid the foundation for a long-standing relationship between ADSB and the Kuwaiti Ministry of Defense.