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Jordan and the UAE: Toward a Smart Defense Industry Hub

By Prof. Khalid Wassef Al-Wazani

Professor of Economics and Public Policy

Mohammed Bin Rashid School of Government

Artificial intelligence is no longer merely a tool for enhancing productivity in traditional economic sectors. It has become a central element in redefining the concept of national security itself. In a world where threats are rapidly evolving, from cyberattacks and unconventional warfare to targeted assassinations and hybrid conflicts, defense industries are increasingly transforming from conventional manufacturing systems into digital platforms built around data, algorithms, advanced semiconductors, and strategic minerals. Smart defense industries unquestionably require three interconnected pillars. The first is highly skilled human capital equipped with knowledge, innovation, and entrepreneurial capabilities. The second is the financial and technical capacity to invest in storage, management, and utilization of big data. The third is the ability to develop and deploy advanced algorithms and AI-driven systems.

Within this framework, a realistic opportunity emerges for a strategic partnership in the Arab region, initially led by Jordan and the United Arab Emirates. Such a partnership could be built on economic, technological, and investment foundations aimed at establishing a globally specialized hub for research and development in smart defense technologies, eventually evolving into an advanced ecosystem for AI-driven defense industries. Jordan possesses a significant comparative advantage in the availability of technically skilled and highly educated human capital. This talent base represents a critical input for developing intelligent defense solutions built around algorithms, big data, and artificial intelligence applications. In addition, Jordan possesses some good amount of earth rare materials and strategic minerals increasingly important for smart defence industries. The UAE, on the other hand, offers global partnerships, investment capabilities, and strong institutional capacity in the fields of artificial intelligence, advanced technologies, and data-driven innovation. It has also succeeded in attracting world-class expertise and building national capabilities in areas related to space technologies, AI investment, and advanced digital infrastructure. Together, the two countries possess complementary strengths that could position them to establish one of the region’s leading smart defense and security technology ecosystems.

Both countries also share extensive experience in security and regional stability operations, including border protection, peacekeeping missions, and crisis management. Such expertise could be leveraged in the development of AI-based applications in cybersecurity, early warning systems, predictive threat analysis, and the protection of high-profile individuals and critical infrastructure. From an investment perspective, this sector is experiencing rapid global expansion. Global investment in AI-driven defense technologies continues to rise amid growing demand for digital and military security solutions. Estimates indicate that the market for artificial intelligence in defense industries reached approximately $16 billion in 2025 and is expected to exceed $200 billion over the next decade, with annual growth rates surpassing 25 percent. Meanwhile, the defense cybersecurity market is currently valued between $20 billion and $30 billion and is projected to expand significantly in the coming years.

These trends a unique opportunity for Jordan and the UAE to attract high-value investments, particularly if they succeed in developing flexible regulatory frameworks, strong governance mechanisms, and incentive structures targeting global technology firms operating in this field. Nevertheless, realizing such a vision will not be without challenges. It requires robust governance structures, strong data protection guarantees, a careful balance between security requirements and investment openness, and the ability to compete with emerging regional technology hubs.

Ultimately, the future of smart defense industries will not be determined by the number of factories or the scale of military spending alone, but by the ability to produce knowledge and transform it into intelligent solutions. The question, therefore, is no longer whether such a strategic partnership can emerge, but whether it can move with sufficient speed, flexibility, and strategic vision to establish leadership in the emerging economy of smart protection and defense technologies.

Prof. Khalid W. Al Wazani