EDGE Group and Indra have agreed to establish a new defence manufacturing company in Spain dedicated to the development, production, and lifecycle support of loitering munitions and smart weapons for Spanish and European defence programmes. The initiative reflects a decisive step toward strengthening Europe’s sovereign industrial base at a time of rapidly expanding defence requirements, and is supported by an estimated EUR 2 billion multi-year order pipeline.

Subject to the approval of both companies’ boards, the new entity will be created as a dedicated manufacturing organisation in Spain. It will combine EDGE’s operational and technological expertise in loitering munitions with Indra’s industrial footprint, programme execution capacity, and integration into European defence ecosystems. Production of loitering munition systems is planned for the province of León, where Indra will develop a new drone manufacturing facility, backed by an investment estimated between EUR 15 and 20 million.

The agreement was signed in the presence of senior Spanish and Emirati officials, underlining the strategic importance attached to the project by both governments. The initiative aligns closely with Europe’s growing emphasis on defence industrial sovereignty, ensuring that advanced capabilities are produced in-country, at scale, and under European regulatory and operational frameworks. It also positions Spain as a key node in Europe’s emerging loitering munitions and unmanned systems supply chain.

Loitering munitions have become a central capability in modern warfare, offering precision strike, real-time ISR, and rapid responsiveness at relatively low cost. Demand across Europe has surged as armed forces adapt to lessons from recent conflicts and seek scalable, networked strike and reconnaissance solutions. By localising production in Spain, Indra and EDGE aim to provide European customers with assured access to these systems, reduce dependency on non-European supply chains, and accelerate delivery timelines.

The new company will not be limited to assembly alone. Its mandate includes development, manufacturing, and full lifecycle support, enabling long-term sustainment, upgrades, and potential future evolution into additional defence capabilities as requirements expand. This structure ensures that know-how, engineering competence, and industrial value remain embedded within Europe, while benefiting from EDGE’s mature loitering munition technologies and operational experience.

Hamad Al Marar, Managing Director and CEO of EDGE Group, described the venture as a decisive step in EDGE’s expansion into Europe. He emphasised that establishing loitering munition capabilities in Spain enables in-country manufacturing while directly responding to the scale and urgency of European defence needs, building enduring industrial capacity with a trusted European partner.

For Indra, the project represents a strategic inflection point. CEO José Vicente de Los Mozos noted that the initiative advances Indra’s ambition to become a European reference in the drone and unmanned systems sector. The loitering munition market is among the fastest-growing segments in defence, and the ability to rapidly design, produce, and sustain these systems positions Indra at the forefront of a critical capability domain.

Beyond its industrial impact, the venture carries broader strategic significance. It exemplifies a new model of trans-regional defence cooperation, combining Middle Eastern technology leadership with European-scale manufacturing and programme governance. In doing so, it strengthens Europe’s resilience, enhances Spain’s role in high-end defence production, and contributes to a more balanced and diversified global defence industrial landscape.