DUBAI, UAE, Feb. 26, 2025 /PRNewswire/ — Estonia is enhancing its defence innovation through strategic alliances globally. His Excellency (H.E.) Hanno Pevkur, Estonia’s Minister of Defence, visited the UAE and attended the IDEX 2025 conference—the global stage for defence innovation and collaboration.
Investment in European defence tech startups is expected to surpass over $1.04 billion this year with the majority directed toward dual-use technologies. However, many funds remain restricted from investing in weapon-related innovations. The UAE and Estonia are jointly advancing their defence sectors, with the UAE focusing on next-generation defence technologies, cybersecurity, AI, and autonomous systems. The UAE’s rise as a global defence tech ecosystem aligns seamlessly with Estonia’s innovation-driven approach.
Technological Innovation Driving Defence Excellence
Estonia has emerged as a prominent hub for defence start-ups, dedicated to advancing AI, cyber defence, and autonomous systems. The UAE’s increasing investment in AI-driven defence solutions, unmanned systems, and digital security highlights the synergy between the two nations. Estonia’s defence sector leads in advanced technology solutions, featuring cyber defence innovations from Cybers, robotics from Milrem Robotics, autonomous systems from DefSecIntel, sensor technology from ELSA Solutions, and communication advancements from Teleport. These solutions are pivotal to achieving battlefield superiority, supporting the UAE’s pursuit of enhanced security measures through technological advancements.
Estonia’s defence industry is bolstered by companies dedicated to advancing military capabilities through innovative solutions, with 21 companies actively exploring opportunities in the UAE market. The focus of these companies spans across defence technologies such as autonomous systems, AI-driven innovations, advanced robotics, cybersecurity, and state-of-the-art communication and surveillance systems. The Estonian delegation also participated in high-level meetings with key industry leaders, including Hamad Al Marar, CEO of EDGE Group; Ziad Al-Musallam, CEO of SAMI AEC; and H.E. Ahmad Abdulaziz Al-Ohali, Governor of GAMI, further reinforcing Estonia’s commitment to strategic partnerships in the region.
H.E. Hanno Pevkur, Estonian Minister of Defence, stated: “Estonia’s defence industry is driven by cutting-edge advancements that enhance national security and contribute to international stability. Our companies continue to develop transformative technologies that are vital in redefining modern defence capabilities. Strengthening collaboration with the UAE has further accelerated industry-led progress in addressing emerging security challenges.”
Advancing Cybersecurity and Autonomous Defence Solutions
Estonia is widely recognised for its leadership in cybersecurity, ranking first in the EU on the Global Cybersecurity Index. Hosting the NATO Cooperative Cyber Defence Centre of Excellence further underlines Estonia’s position as a global cybersecurity leader.
The UAE is rapidly expanding its cyber defence capabilities as well, enhancing national security through strategic investments in cybersecurity infrastructure. With a $23.2 billion defence budget in 2023, the UAE is the second-largest defence investor in the Middle East, with cumulative defence investments estimated to reach $129 billion between 2024 and 2028. This commitment to technological advancement and strategic collaboration elevates the UAE’s status in global security.
Milrem Robotics, the world’s leading robotics and autonomous systems developer, is set to launch its highly anticipated 8×8 Robotic Combat Vehicle (RCV). This next-generation hybrid unmanned ground vehicle (UGV), named HAVOC, represents a revolutionary step in modern combat operations. The UAE’s emphasis on autonomous defence solutions aligns closely with such advancements. Similarly, Vegvisir unveiled the Virtual Command Station, a cutting-edge, rapidly deployable command solution that leverages virtual reality (VR) to replace bulky screens with a compact, space-efficient, and highly collaborative environment. This innovation is transforming fleet management and command & control solutions, an area of strategic interest for the UAE.
Rene Ehasalu, Cluster Manager of the Estonian Defence and Aerospace Industry Association, commented: “The Estonian defence sector continues to push the boundaries of technological advancement. Our partnerships with the UAE and other global allies highlight the significance of innovation-driven security solutions, ensuring resilience in an evolving threat landscape. Estonia’s expertise in cybersecurity and autonomous systems, coupled with the UAE’s investment in next-generation defence solutions, is shaping a robust and future-ready defence ecosystem.”
Key Defence Trends for 2025
Looking ahead to 2025, the defence sector is witnessing a transformative shift driven by several key trends. Autonomous systems, including drones and robotic technologies, are increasingly defining modern warfare strategies. The importance of electronic warfare continues to grow, defining how nations defend against and counter emerging threats. AI and machine learning are becoming integral to defence technologies, enhancing decision-making, operational efficiency, and predictive capabilities. Additionally, fortifying supply chains and deepening international collaboration are fundamental in ensuring resilience and adaptability in a rapidly evolving security landscape.
Estonia continues to be a leader in defence innovation, with defence spends expected to reach 3.7% of its GDP in 2026 and discussions underway for increasing this further. The country is actively supporting NATO and other international defence initiatives. With two-thirds of its defence sector output exported, Estonia’s defence industry demonstrates strong global demand. Estonia and the UAE remain at the forefront of defence technology evolution, cementing their strategic partnerships and underpinning their roles as key players in global security advancements.
About Trade Estonia
Trade Estonia is part of Enterprise Estonia. As a state organisation, Trade Estonia helps Estonian companies to establish themselves in international markets. With a focus on future technologies and pioneering projects, Trade Estonia provides Estonian companies with access to market analysis and marketing strategies and creates the conditions for them to operate successfully on a global scale. Trade Estonia not only promotes the development of new business areas and the establishment of strategic partnerships, but also facilitates access to international networks, thus contributing to the global competitiveness of Estonian companies.
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