Emirati Defense Giant Acquires 50% Stake in Brazilian Weapons Company SIATT
UAE's EDGE Group seals a major deal, solidifying ties with Brazil.
The EDGE Group, a state-owned defense technology firm based in the United Arab Emirates, announced a significant deal on Friday with the Brazilian high-tech weapons company SIATT, in which EDGE has acquired a 50% stake in SIATT.
This development underscores the growing partnership between the two nations.
The official signing of the deal occurred at SIATT’s headquarters in the southeastern city of São José dos Campos, as confirmed by an official press release from the EDGE Group.
According to Magdalena Karolak, an associate professor of humanities and social studies at Zayed University in the UAE, “Emirati interest in this Brazilian company is largely due to SIATT’s production of anti-ship missiles with advanced guidance and navigation capabilities.” She explained to The Media Line that this supports the UAE’s drive to develop high-tech defense systems.
André Carvalho, a lecturer in defense and security at the Brazilian Integrated Manufacturing and Technology Center and a research fellow in strategic studies for the South American Institute for Politics & Strategy, pointed out that the EDGE Group already had a strong relationship with Brazil’s defense firms, particularly SIATT.
Carvalho revealed that in April 2023 both companies collaborated on a co-development agreement with the Brazilian Navy to create the MANSUP, a long-range anti-ship missile.
In the broader context, the United Arab Emirates and Brazil have enjoyed a positive relationship since 1974. However, in recent years, their bilateral ties have deepened in terms of diplomacy, defense, and trade.
Regarding Brazil’s appeal, Carvalho explained, “Brazil is a country with a well-established defense industry that offers a wide range of high-performance and cost-effective weapons systems, especially smart weapons.” He added that Brazil’s strong investment in its arms industry, coupled with its lack of apparent security threats, makes it an ideal low-risk environment for high-tech defense initiatives.
Carvalho speculated that the UAE and the EDGE Group may aim to use Brazil as a hub for exporting defense products to South and Latin American militaries.
Dr. Andrei Serbin Pont, an international analyst and the executive director of CRIES, a think tank based in Buenos Aires, told The Media Line that the recent change in Brazil’s presidency is favorable for this purpose. President Luiz Inácio Lula da Silva, who previously served two terms between 2002-2010, won the last elections in the country and was sworn in January 2023.
Carvalho believes that the UAE could benefit from Brazil’s strong diplomatic ties with countries in various regions, making it a solid leader for Latin America and exerting significant strategic influence in many African countries as well.
Both nations are also set to gain from technological collaboration, which enables information sharing and faster development in critical areas such as autonomous weapons systems, guidance systems, warfighting artificial intelligence, and control and telemetry systems.
This development is an example of the UAE’s broader commitment to creating a knowledge-based economy.
The deal reflects the UAE’s efforts to diversify its economy. Karolak explained, “This development is an example of the UAE’s broader commitment to creating a knowledge-based economy.” She mentioned Abu Dhabi’s ‘Projects of the 50,’ which aims to establish 500 national companies equipped with Fourth Industrial Revolution technologies and a technologically advanced workforce. Karolak emphasized that advancements in the military sector are part of this initiative, positioning the UAE as a leading innovative nation.
“Military innovation often serves other means that are civilian or scientific in nature, for example, in space exploration, which is one of the priorities of the UAE as well,” she added.
Carvalho noted that EDGE is expanding its presence beyond South America, closing important deals with Bulgarian companies involving the transfer of space technology and land-fighting vehicles. He also mentioned EDGE’s stake in an Estonian company named Milrem Robotics and its presence in Angola, where they supplied the Angolan Navy with the Combattante BR71 Mk II corvette vessel.
Beyond economic benefits, the UAE is pursuing geopolitical goals. While Karolak believes it’s premature to consider an American withdrawal from the Middle East, she acknowledges that the perception of such a phenomenon has impacted Emirati geopolitical behavior.
The UAE seeks balanced relations not solely reliant on American partners but based on more equal footing. Consequently, the UAE has expanded its network of cooperation, including in terms of military trade, and strives to be an innovator and producer of military technology, advancing self-reliance from a military perspective.
