Egypt Expands Defense Manufacturing with Global Co-Production Agreements
Egypt’s defense industrial base is experiencing significant expansion as the Arab Organization for Industrialization (AOI) leverages this week’s Egypt Defence Expo (EDEX) to announce a sweeping portfolio of international co-production agreements. The state-owned firm has signed more than a dozen partnerships with global defense contractors, marking a strategic pivot toward becoming a critical node in international defense supply chains.
Among the most significant announcements is AOI’s formalization of a two-year negotiation with France’s Dassault Aviation. Major General Mokhtar AbdelLatif confirmed that AOI will now localize production of components for both the Rafale fighter jet and Falcon business jet platforms at Egyptian facilities. This partnership effectively integrates AOI into Dassault’s global supply chain, representing a major achievement for Egyptian defense manufacturing ambitions.
The agreements with Chinese firms represent perhaps the most consequential partnerships. AOI signed a co-production agreement with state-owned China North Industries Corporation (Norinco) to manufacture 85 percent of the Hamza-2 tactical unmanned aerial vehicle domestically. The Hamza-2, which made its international debut at EDEX, combines surveillance and combat capabilities with anti-tank missile systems. Production is scheduled to commence in 2026.
Beyond the Hamza-2, AOI is developing additional unmanned systems with multiple Chinese partners. These include mini-drones for individual soldier deployment—four three-kilogram systems per soldier with three-kilometer range—and a one-way attack drone featuring 60 percent local production capability designed for anti-armor engagements across six-kilometer ranges.
Turkey’s Havelsan contributed to the unveiling of two platforms: the Aqrab, a six-wheeled autonomous unmanned ground vehicle suitable for all-terrain operations and capable of mounting multiple launchers, and the Hamza-1, a vertical take-off and landing surveillance UAV. The Aqrab was notably produced within three months and stands ready for mass production.
Regional partnerships also feature prominently. AOI signed seven agreements with United Arab Emirates firms for production localization and maintenance services, while Pakistan’s GIDS secured an agreement exploring defense production opportunities in Egypt.
Notably absent from this expansion are American defense contractors, though AbdelLatif confirmed ongoing cooperation with Honeywell on M1A1 Abrams tank engine component manufacturing, an agreement initiated in September 2024.
These developments underscore Egypt’s strategic positioning as a geopolitically significant manufacturing hub, simultaneously deepening ties with Western, Eastern, and regional defense industrial bases. The expansion reflects both Egypt’s industrial capabilities and international recognition of its critical location within global defense supply networks.
Source ID: SRCE-2025-1764943486216-1190