EDGE Group and Indra partner, predict €2 billion loitering munition pipeline

The UAE’s EDGE Group has partnered with Indra to build a new facility to build loitering munitions in Spain. The companies anticipate a pipeline worth up to €2 billion in the near future.

BLUF: 

• Indra and EDGE will build a new facility in Leon for the production of loitering munitions from the EDGE Group portfolio. 
• This partnership adds to at least four that EDGE has signed with European companies since 2023, continuing its export drive. 

Abu Dhabi’s burgeoning defence powerhouse, the EDGE Group, has secured a major foothold in the European arms market after signing a landmark agreement with Spain’s Indra Group to develop a new generation of smart weapons.

The joint venture, announced in Madrid on 13 January 2026, aims to capitalise on an estimated €2 billion (£1.7bn) pipeline of orders for loitering munitions. EDGE has developed a range of loitering munitions and uncrewed systems designed to provide immediate reconnaissance and strike capabilities. 

Under the terms of the deal, Indra will spearhead the construction of a new €20 million production facility in the province of León. This site will become a hub for the manufacturing and lifecycle support of advanced weaponry, ensuring that Spain maintains sovereign capability over its military hardware, the press release states.

Hamad Al Marar, the Managing Director of EDGE, described the move as a “decisive step” in the group’s European expansion. The partnership is designed to meet the “scale and urgency” of European defence requirements, which have intensified as nations look to replenish stocks and modernise their arsenals.

• Calibre interview: Miles Chambers, SVP of International Business Development, EDGE Group
• HX-2: Helsing releases details of AI-enabled loitering munition – Calibre Defence
• Bundeswehr’s 45th Panzer Brigade to get loitering munitions – Calibre Defence  

José Vicente de los Mozos, CEO of Indra, added that the move would position the Spanish firm as a “European reference” in the rapidly growing drone industry. According to Miles Chambers, EDGE’s Senior Vice President for International Business, the group’s success stems from its agility. In a recent interview with Calibre, Miles noted that the group has grown from a handful of exports to a turnover of $5 billion, with two-thirds of sales now coming from international markets. He emphasised that the goal is not just to sell products, but to build “long-term industrial capability” within partner nations, moving away from the rigid bureaucracy of traditional Western defence “primes.”

They will join a range of other European companies that produce and develop loitering munitions. This includes companies like Helsing, Stark, AeroVironment, UVision, Rheinmetall, and KNDS France. All of these companies have secured some orders for their platforms, but the incumbents – AeroVironment and UVision, appear to have secured most of the market share having been around for much longer. 

How EDGE is expanding in Europe

The Spanish venture is the latest piece in a complex puzzle for EDGE, which has transformed from a domestic supplier into a global power in the defence sector. Since its inception in 2019, the group has pursued a “buy-and-build” strategy across the continent, as well as seeking out strategic partnerships, such as its recently announced plan to build the Omen UAV in the UAE with Anduril. And on December 19, 2025, the group signed a tech transfer deal with Spain’s EM&E Group, which will see the Ferrox armoured 6×6 from Nimr produced in Spain. 

Outside of Spain, EDGE  has acquired a majority stake in Estonia’s Milrem Robotics, the European leader in uncrewed ground vehicles (UGVs), in February 2023. Milrem’s flagship “THeMIS” UGV is already being used by several NATO members, and Ukraine. By establishing a “centre of excellence” in Tallinn, EDGE is now a key player in European efforts to replace human soldiers with UGVs in high-risk zones.

• EDGE and Magnaghi Aerospace cooperate on drone parts – Calibre Defence
• How MILREM is Redefining Tactical Autonomy with Next-Gen UGVs  
• Omen UAV unveiled by EDGE and Anduril – Calibre Defence 

In Switzerland, EDGE-owned Anavia recently opened a new research and development hub in Bilten. The firm specialises in VTOL unmanned helicopters, such as the HT-750. These heavy-lift drones can carry up to 750kg of cargo, serving both military logistics and civilian emergency roles. The company has secured a large order for its platforms from the UAE armed forces, since EDGE’s acquisition in November 2023. 

Recognising that high-tech drones are only as good as their mechanical parts, EDGE has partnered with Italy’s Magnaghi Aerospace. The cooperation focuses on the “guts” of the aircraft—landing gear and hydraulic systems—ensuring EDGE has a secure, European-based supply chain for its most advanced aerial platforms. 

Calibre comment: Why loitering munitions?

Many European countries have placed large orders for new equipment since 2022. The majority have now replaced or supplemented capital platforms like infantry fighting vehicles, howitzers, and tanks. Many have also placed contracts or signed framework agreements for artillery ammunition. This means that one of the few remaining areas for potential growth is in the field of loitering munitions and other uncrewed platforms. 

By Sam Cranny-Evans, published on January 14, 2026. The lead image shows senior representatives from EDGE and Indra during the signing ceremony. Credit: EDGE Group.