Hanwha Aerospace has set up a wholly owned subsidiary, Hanwha Defense Arabia, in Riyadh, reported September 23, 2026, alongside the Middle East and North Africa regional headquarters it opened in the Saudi capital in September 2025. The entity is meant to strengthen local business development for Saudi Arabia and the United Arab Emirates, support the UAE Cheongung-II and Egypt K9 programs, and satisfy Saudi rules that tie government tenders to having a regional headquarters in the kingdom. No capitalization figure was disclosed. The move follows the September 16 Hanwha-EDGE term sheet on an integrated UAE air defense network.
Hanwha and UAE state defense group EDGE signed a strategic term sheet at EDGE headquarters in Abu Dhabi on September 16, 2026, setting the direction for cooperation on an integrated air defense network for the United Arab Emirates. Hanwha Systems CEO Yang Ki-won and EDGE Group CEO Hamad Al Marar signed the document, which covers the Korean L-SAM long-range surface-to-air missile system, additional M-SAM (Cheongung-II) medium-range capability, counter-drone defenses, and the K239 Chunmoo multiple rocket launcher. Subject to government approvals, the two sides will explore a joint venture in the UAE plus local production and technology transfer. No value was disclosed and the term sheet is not a procurement contract; it builds on the Korea-UAE defense framework agreed in February 2026 and on the 2022 M-SAM sale worth about $3.5 billion. Demand is driven by the 2026 Iranian missile and drone campaign against the UAE, during which Cheongung-II recorded its first combat intercepts.
|Korea Times / Army Recognition / Asian Military Review
The Ministry of National Defense held its first Defense Drone Technology Exhibition at the Seungjin training ground in Pocheon, Gyeonggi, on September 16, 2026, opening a military range so private firms could prove their systems. Six of 17 demonstrations failed: a Korea Aerospace Industries medium jet-powered unmanned aircraft crashed right after takeoff, a second KAI aircraft lost its signal in flight, a direct-impact attack drone crashed, and a drone-launched air-to-ground guided missile missed its target. Military officials from the UAE and Saudi Arabia were among the visitors. Authorities are investigating radio-frequency interference from the large crowd as a likely cause, and a ministry official said the results were "a process of developing better technology rather than failure." The episode followed an August 25 Navy experiment in which an Agency for Defense Development loitering munition fell into the sea seconds after launch on both attempts. Analysts are calling for more test ranges and flight opportunities, R&D funding concentrated on competitively selected firms, a rebuilt domestic supply chain, and long-term procurement commitments.
A Korean defense-industry official said the KF-21 Boramae's first export contract "will be announced soon," with Indonesia (reportedly around 16 units, roughly 3 trillion won), the UAE, the Philippines, and Malaysia cited as leading candidates; KAI President Kim Jong-chul said talks covering 200-plus aircraft are underway. Full-scale mass production is running, and the first mass-produced KF-21 is due to be delivered to the Republic of Korea Air Force in September 2026. KAI plans a "KF-21/IF-X System Development Completion Ceremony" in late July. No binding export contract has been signed yet — the first-customer decision remains a watch item.
Hanwha Aerospace signed a teaming agreement with UAE-based Generation 5 Holding at Eurosatory 2026 (Paris, June 15–19) to collaborate on local manufacture and sale of the K9 155mm self-propelled howitzer for the Middle East market. The deal adds a UAE production base to Hanwha's growing global K9 network alongside Australia (operational since Aug 2024), Egypt (production from H2 2025), and Romania (groundbreaking Q1 2026). IL Sung, Hanwha Aerospace's Head of Middle East & Africa, said producing the K9 locally bolsters partners' defense autonomy and completes a MENA-wide production and supply network.
The UAE launched an accelerated airlift operation on June 12, deploying a fleet of eight C-17 Globemaster III military transport aircraft to move a complete Cheongung-II air defense battery from Daegu Air Force Base to the Gulf region. The urgent transfer underscores growing Middle Eastern demand for Korean missile defense systems following the Cheongung-II's combat-proven 96% intercept rate. Seoul is reviewing the request despite previous caution about supplying weapons to countries involved in active conflicts.
Rising demand from Saudi Arabia and the UAE to accelerate deliveries of Cheongung-II air defense systems is colliding with South Korea's industrial capacity limits and domestic military requirements. On April 12, The Wall Street Journal reported that Riyadh approached Hanwha Aerospace and LIG D&A about expediting Cheongung-II missile deliveries, while Abu Dhabi sought additional interceptor missile supplies following sustained exchanges with Iran. Analysts note this creates a structural trade-off: production allocated to export clients reduces the pace of domestic systems fielding. The longer-term solution lies in expanding capacity through new facilities and supply chains.
Saudi Arabia, the UAE, and Qatar are requesting faster deliveries of South Korea's Cheongung-II (M-SAM) air defense system after its combat debut achieved a reported 96% interception rate against Iranian ballistic missiles. The UAE has asked for interceptor missiles to be supplied ahead of schedule if early battery delivery proves impossible. Six weeks of airstrikes have rapidly depleted regional interceptor stockpiles, creating urgent demand. LIG Nex1 said speeding up the timeline would be difficult due to existing production commitments.
South Korea expedited delivery of a third Cheongung-II M-SAM battery to the UAE, reported as already en route to or arrived in the Middle East with operational readiness expected as early as April 2026. Separately, more than 30 interceptor missiles drawn from ROK domestic stocks were airlifted via UAE C-17 transports from Daegu Air Base around March 8-9. The rapid resupply underscores the system's strategic importance following its successful combat debut against Iranian missiles.
LIG Nex1 and U.S. tech firm Palantir Technologies signed a memorandum of understanding on March 24, 2026, in Palo Alto to jointly develop integrated air defense and unmanned systems for the United Arab Emirates. LIG Nex1 will contribute its experience in integrated air defense and unmanned platforms, while Palantir will provide data integration and analytics software to connect sensors, platforms, and command systems.
The Cheongung-II (M-SAM Block II) medium-range air defense system achieved a reported 96% intercept rate in its combat debut in the UAE against Iran's large-scale missile attacks, according to a South Korean lawmaker citing sources familiar with UAE operations, with two batteries firing approximately 60 interceptors. The system's performance exceeded expectations and validated years of South Korean missile defense development.
South Korea's Cheongung-II (M-SAM Block II) air defense system achieved a reported 96% hit rate in its first combat engagement, with two UAE batteries firing about 60 interceptors against Iran's missile attacks, according to lawmaker Yoo Yong-won citing sources. Across all UAE air defenses, the UAE defence ministry reported 161 of 174 ballistic missiles destroyed and 645 of 689 drones intercepted. The UAE made an emergency request for more than 30 Cheongung-II interceptors.
UAE's EDGE Group and South Korea's DAPA signed a landmark defense industry cooperation framework, with cooperation under it expected to amount to approximately $35 billion, covering integrated air defense, advanced aircraft, and maritime capabilities. The memorandum spans joint design, development, training and maintenance, moving beyond traditional buyer-seller relationships.
U.S. autonomous systems maker Shield AI announced that its V-BAT vertical takeoff drone will be armed with LIG Nex1's guided missile system, following a contract commemoration event held at UMEX 2026 in Abu Dhabi. The integration pairs Shield AI's autonomous VTOL capability with LIG Nex1's precision strike munitions, marking a significant cross-border defense technology partnership.