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France, UAE revive Rafale F5 talks after €3.5 billion dispute

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New framework sets out terms for future industrial collaboration

ABU DHABI – France and the United Arab Emirates have revived cooperation on the next-generation Rafale F5 fighter programme, reopening a defence partnership that stalled earlier this year over funding and access to sensitive military technology.

The agreement was signed during French President Emmanuel Macron’s visit to Abu Dhabi yesterday, as both countries moved to deepen their strategic defence relationship. The renewed initiative also reflects the UAE’s ambition to expand domestic defence manufacturing and reduce reliance on foreign suppliers.

The agreement forms part of a wider package of defence arrangements between the two countries, covering future combat aviation, industrial collaboration and technological development. UAE President Sheikh Mohamed bin Zayed Al Nahyan and Macron witnessed the exchange of the Strategic Defence Partnership Framework, alongside an agreement on implementing arrangements for defence industry cooperation.

Funding dispute

The renewed cooperation follows a breakdown in negotiations over the Rafale F5 programme, which is expected to cost approximately €5 billion. According to Defence24, the UAE had previously been prepared to contribute up to €3.5 billion towards development but withdrew from the financing discussions after France declined to provide access to certain sensitive technologies, particularly advanced optronics.

The latest agreement establishes a framework for cooperation under the French and Emirati Rafale programmes, including technical and financial arrangements for future industrial work. However, it does not confirm whether Abu Dhabi will reinstate its proposed €3.5 billion contribution or whether France will grant access to the technologies at the centre of the earlier disagreement.

The distinction is significant for Paris, which has continued developing the F5 standard through its domestic defence industry. Whether the new framework leads to joint development and substantial Emirati funding remains to be determined.

EDGE ambitions

The UAE is seeking to expand its domestic defence capabilities through EDGE Group, a conglomerate comprising more than 35 companies involved in advanced weapons systems, unmanned technologies, cyber protection and electronic warfare.

During his visit, Macron toured an EDGE industrial facility as the two countries explored opportunities to strengthen defence industry ties. The group already has partnerships with French companies and has signed a cooperation agreement with France’s Directorate General of Armaments.

For Abu Dhabi, involvement in advanced combat aviation programmes offers a potential route to developing local expertise, strengthening manufacturing capabilities and securing a greater role in sophisticated defence projects. The broader strategic partnership also places emphasis on military interoperability, industrial resilience and cooperation in emerging technologies, including artificial intelligence and space.

Next-generation fighter

The Rafale F5 is planned as a substantial technological advance over earlier versions of the French fighter. Its expected improvements include enhanced radar and electronic warfare capabilities, more resilient communications and upgrades to its M88 engine.

The aircraft is also intended to operate alongside a future unmanned combat aircraft, expanding its ability to conduct reconnaissance, electronic warfare and strike missions. The F5 standard is expected to support the modernisation of France’s airborne nuclear deterrent through integration with the planned ASN4G nuclear missile.

The programme is therefore important to France’s longer-term military planning as it seeks to maintain advanced combat capabilities while managing the cost of developing future aircraft and modernising its armed forces. The proposed timetable outlined in previous reporting places qualification of the F5 around 2033, with potential export availability from approximately 2035.

The UAE already has a major stake in France’s combat aviation industry. In 2021, it ordered 80 Rafale F4 fighter jets in a deal worth approximately €16.6 billion, including helicopters, weapons and support. Deliveries of the aircraft are expected to begin towards the end of 2026, providing a foundation for further cooperation on future Rafale capabilities.

Beyond defence, Macron’s visit has also produced agreements and initiatives involving energy, artificial intelligence and advanced technology. The two countries are seeking to strengthen economic ties and cooperation on energy security amid regional instability and disruptions affecting maritime trade through the Strait of Hormuz.

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