EDGE to build Falaj 3 missile boats for Kuwait in record deal

The UAE’s EDGE Group is set to build its Falaj 3 missile boats for Kuwait under a record deal valued at $2.45 billion (€2.15 billion/£1.81 billion), which is the largest in the region’s history according to a 3rd June press release. 

The deal includes construction of an undisclosed quantity of the Falaj 3 from the Abu Dhabi Ship Building (ADSB) company, which is the group’s naval arm. “EDGE will lead the programme which includes the design, construction, trials, and delivery of the vessels, in addition to Integrated Logistics Support and In-Service Support,” the press release states. 

Additionally, EDGE is expected to provide the ammunition for the vessels, which will draw on other companies within the EDGE Group like Siatt, which produces a range of anti-ship missiles called MANSUP with a range of 70 km, or Halcon, which produces the Skyknight naval missile system for short-range air defence. The Group also includes Caracal, which produces small arms and ammunition up to 12.7 mm in calibre. 

The production timeline for the vessels is not clear, however, some information is available on the pace of the Falaj 3 project for the UAE navy. The contract to build four vessels was awarded to ADSB in 2021 and design had been completed by December 2022. This allowed the first steel to be cut in a ceremony that month and the first vessel was launched in January 2025, before commissioning as Altaf in February. The project is understood to be valued at $952.86 million (£700 million/€840 million), but it is unclear what is included, so this may not provide a reasonable metric to assess the size of the Kuwaiti order. 

“This agreement with Kuwait is hugely significant both in scale and strategic importance. It deepens long-term defence ties between our nations, brings a proven class of advanced vessels into regional service, and reinforces EDGE’s position as a trusted international partner,” Hamad Al Marar, Managing Director and CEO of EDGE said. 

“It also reflects the pace of industrial and engineering progress we’ve achieved in just a few years,” Al Marar added, which touches on an interesting point: EDGE was launched in 2019 with the goal of establishing a domestic defence industry in the UAE that could provide sovereign security and export opportunities. The country was looking to the future and an anticipated global shift away from oil, defence was identified as one market that could support the economy after the last barrel of oil. In the following six years, it has rapidly developed and manufactured products that often take much longer to produce elsewhere. 

Its Rabdan FA-400, for example, was developed entirely by ADSB. The keel for the first FA-400 was laid in October 2024, and the first complete vessel displayed at NAVDEX the following February, just over four months later. This, and other projects underway, reflect the company’s efforts to build “turnkey defence solutions,” with all needs for a given project provided by a single company. This can eliminate additional costs in the form of intermediary companies that may be used for some contracts, and also enables EDGE to seek more cost-efficient solutions. 

That is not to say that the company does not use external partnerships, however. The FA-400 carries a suite of mission systems from other suppliers like Canadian company, OSI Maritime Systems, which is providing navigation systems for the vessel. 

Tech profile: Falaj 3

The Falaj 3 is a 62 metre naval patrol vessel that is designed to balance asymmetric missions with conventional warfare. It is described as being capable of both blue water and littoral operations and able to carry both surface, sub-surface, and air warfare capabilities. 

Calibre comment 

The Kuwait Naval Force numbers around 2,200 personnel including 500 in the coastguard. It has a fleet of missile fast patrol boats including eight of the Um Al Maradim class vessels built by Construction Mecaniques de Normandie in France. All eight were commissioned between 1998 and 2000 and are based on the company’s Combattante I design. The vessels are primarily equipped with European systems and weapons, so the addition of Falaj 3 to the fleet will shift the country’s supply relationships to the UAE. It is not clear if the Falaj 3 is set to replace the Um Al Maradim class, but Kuwait is extensively modernising all of its armed forces, either replacing some systems or upgrading old ones. Indeed, contracts for upgrades and overhauls of other vessels in the Kuwait Naval Force have also been signed with ADSB. 

The growth in Kuwaiti defence spending is also reflective of wider changes in the Middle East with many of the Gulf States investing heavily in their naval capabilities and moving away from reliance on the US. Whilst the US Navy is expected to play a continued role, promising deterrence by punishment to Iran and its proxies, other states like the UAE are focusing on deterrence by denial and detection, according to a IISS paper from 2023. This essentially means asymmetrically combatting Iran, ensuring its attacks will not reach their targets through early warning and air defence systems, as well as detecting its attacks early. The Kuwaiti procurement of Falaj 3 could be seen in this light. 

By Sam Cranny-Evans, published on 4th June, 2025.