In a significant boost to regional defense cooperation and industrial capability, U.S. defense giant Raytheon and the United Arab Emirates’ Tawazun Council have signed a landmark agreement to begin local production of the Coyote counter-unmanned aircraft system (C-UAS) interceptor in the UAE. The announcement marks a major step forward in joint U.S.-UAE military-industrial collaboration amid increasing regional demand for effective drone defense.
The term sheet, signed by Fahad Al Mheiri, Managing Director of Raytheon Emirates, and Matar Al Romaithi, Sector Chief of Defense and Security Industry Affairs at Tawazun Council, was witnessed by senior defense and diplomatic officials. Among those present were U.S. Ambassador to the UAE Martina Strong and H.E. Dr. Nasser Al Nuaimi, Secretary General of Tawazun Council.
“This agreement supports the U.S. defense industrial base by delivering increased capacity and resilience in a high-demand mission area,” said Al Mheiri. “It’s a testament to the strength of our partnership with Tawazun and the shared vision to drive innovation and readiness through trusted collaboration.”
Raytheon’s Coyote system is a combat-proven solution in the U.S. military’s arsenal to counter small drones, which have become a critical threat in modern battlefields. The system is versatile, compact, and capable of being launched from a variety of platforms to intercept, disable, or destroy hostile unmanned aerial vehicles (UAVs).
This new agreement enables domestic production of the Coyote interceptor, allowing the UAE to rapidly scale deployment across its defense infrastructure. It also opens avenues for potential export to Gulf Cooperation Council (GCC) partners and other allies in the Middle East and North Africa.
The backdrop of the agreement is a global surge in the use of drones in warfare. Low-cost UAVs have been widely used in conflicts from Ukraine to Yemen, where both state and non-state actors employ drones for surveillance, targeting, and precision attacks. In 2019, Houthi rebels in Yemen used drones to target Saudi oil facilities, disrupting global energy markets and highlighting the critical need for advanced counter-drone capabilities in the region.
Raytheon’s Coyote interceptor has already been deployed in key operations by U.S. forces and is lauded for its reliability in detecting, tracking, and neutralizing drone threats. The system can operate independently or as part of a layered defense architecture, integrating radar, electronic warfare tools, and kinetic interceptors.
“The future of warfare is asymmetric, and drones have emerged as a preferred weapon for insurgent groups and militaries alike,” said Dr. Mariam Al Kaabi, a UAE-based security analyst. “With this agreement, the UAE is not just acquiring a system—it’s building sovereign capabilities to produce, maintain, and evolve cutting-edge defense tools.”
The Coyote family of interceptors includes several launchable effectors (LE variants) designed for a range of tactical missions. These variants extend the Coyote’s capabilities beyond basic interception.
- LE Block 1: Designed for surveillance and reconnaissance.
- LE Block 2: A kinetic interceptor for direct drone destruction.
- LE Block 3 and 4: Equipped for electronic warfare, jamming, and communications disruption.
Such modularity offers battlefield commanders tactical flexibility in both urban and open terrain scenarios. It also enables a layered approach where electronic effects are used first, and kinetic force is applied only when necessary, preserving resources and minimizing collateral damage.
Raytheon has also confirmed that the Coyote LE supports beyond-line-of-sight engagements. This makes it an ideal tool in contested environments, where adversaries may deploy swarming drone tactics from multiple directions and distances.
Beyond its military significance, the deal aligns with the UAE’s long-term strategy to localize defense manufacturing and reduce dependence on foreign arms imports. Tawazun Council has played a pivotal role in achieving this vision by forming industrial partnerships and investing in R&D capabilities.
Under the terms of the agreement, Raytheon will work closely with UAE defense firms to transfer technology and train local engineers and technicians. The initiative is expected to generate skilled jobs and deepen the technical know-how within the country’s defense ecosystem.
“This move underscores Tawazun’s commitment to building a sustainable defense industry in the UAE,” said Al Romaithi. “Our collaboration with Raytheon represents the kind of high-value industrial partnership we aim to replicate across other key defense domains.”
From a geopolitical perspective, the agreement also reflects a maturing U.S.-UAE defense relationship that extends beyond arms sales to include industrial integration and co-production. It signals Washington’s trust in Abu Dhabi as a reliable partner in sensitive technology domains.
The move may also be interpreted as a U.S. response to increasing Chinese and Russian defense influence in the Gulf. Both Beijing and Moscow have made efforts to supply regional states with drone technology, often with fewer export restrictions. The Raytheon-Tawazun deal, therefore, helps anchor the UAE within the U.S. defense technology sphere at a time when global alignments are under strain.
“This isn’t just about defense equipment; it’s about strategic alignment,” said Robert Gallucci, a former U.S. arms control negotiator. “The U.S. rarely allows its premier systems to be produced abroad unless there’s deep trust and a broader strategic goal.”
Both Raytheon and Tawazun have emphasized that this agreement may be a stepping stone for broader R&D collaboration. Areas being explored include AI-enabled threat detection, autonomous targeting, and integration with future air and missile defense networks.
The production of the Coyote system in the UAE could serve as a template for future co-production of advanced technologies such as hypersonics, directed energy weapons, and satellite-based surveillance tools.
“This is more than just a manufacturing deal. It is a launchpad for future innovation between the U.S. and UAE defense sectors,” Al Mheiri noted. “We are laying the groundwork for joint capabilities that can address tomorrow’s threats.”
With regional tensions remaining high—especially around the Strait of Hormuz and in ongoing conflicts across the Middle East—the ability to defend airspace against low-flying, fast-moving drone threats is no longer optional. The Raytheon-Tawazun partnership not only reflects an urgent operational requirement but also marks a shift in how modern defense partnerships are structured.
As local production ramps up, the UAE may well become a hub for counter-drone systems in the region. This would enhance its strategic autonomy and offer allied countries an alternative source of tested, high-end defense technologies.
