Renowned economic journalist Richard Dean has highlighted three crucial figures regarding the Emirati economy that are particularly significant in the current climate.
According to Dean on the AGPI platform, these statistics are essential, especially amidst regional tensions, as they provide context to the economic landscape of the UAE.
The first figure is $5 billion, which represents the annual revenues of “EDGE.” This showcases how the UAE has been developing its defense industry for decades.
In 2021, EDGE launched the “Sky Knight” system, described as the “first Emirati missile defense system against missiles, artillery, and mortars designed and manufactured locally.” This system effectively intercepts drones and hostile missiles and was initiated in collaboration with the German company Rheinmetall.
Further innovation was exhibited at the Dubai Airshow last November, where EDGE showcased its new “VORTEX-E” system, claimed to provide accurate interception of drones.
During the same event, EDGE secured a deal with the Brazilian Navy to develop a drone countermeasure system. The concept is clear: the technology is complex and emerging, utilizing artificial intelligence, jamming, and projectile launches. Much of this, of course, remains classified.
The broader takeaway is that the UAE is not solely dependent on purchasing military equipment from foreign companies and governments; it has been designing and manufacturing its own equipment for years, primarily at the Tawazun industrial complex in Abu Dhabi.
According to CEO Hamad Al Murar, EDGE ranks among the top 25 defense groups globally.
Sovereign Wealth
The second figure is $1.8 trillion, representing the size of sovereign wealth funds in Abu Dhabi, as reported by consulting firm Global Sovereign Wealth Funds.
Dean noted that this figure carries significant weight for two reasons. Firstly, consider the assertion by Moritz Schularik, head of the prominent German Institute Kiel: “Countries win wars because of their financial resources.”
This conclusion stems from his 2025 study, “Who Wins Wars?,” which analyzed 700 conflicts from 1977 to 2013. While regional history suggests this is not always the case, financial resources are undeniably vital.
This astonishing figure of sovereign funds, estimated around $1.8 trillion, is roughly four times the UAE’s GDP. Thus, the UAE’s capacity for defense spending appears almost limitless. Assuming Abu Dhabi achieves a return of just 5% on these sovereign funds, this translates to $90 billion annually, about equivalent to the country’s annual oil revenues.
Dean emphasized that these funds allow the UAE to bolster its local economy. Regardless of challenges, this substantial financial reservoir enables the nation to implement counter-cyclical measures, which could include government salaries, infrastructure spending, and banking sector support—a rich and varied financial stimulus portfolio.
While the sovereign wealth funds in Abu Dhabi are significantly larger, other emirates also maintain strong investments through government ministries, sovereign funds, and state-backed enterprises, in addition to the federal government’s involvement.
The third important figure is a real annual economic growth rate of 4% for the UAE economy since 1990. According to World Bank data, the real GDP of the UAE, taking 2015 prices into account, was $127 billion in 1990, escalating to $462 billion in 2024.
This growth has persisted despite various regional shocks, including the Iraqi invasion of Kuwait in 1990-91, the oil price collapse in 1998, the global financial crisis, the Arab Spring, and the COVID-19 pandemic in 2020—truly a testament to decades of economic resilience.
5
Annual revenues of EDGE as the UAE advances in developing its defense industry
1.8
Trillion dollars in sovereign wealth funds in Abu Dhabi
4%
Annual real growth rate of the UAE economy since 1990