Has US-Iran war changed drone warfare? Cheap UAVs force shift in air defence

The rapid proliferation of low-cost drones and loitering munitions is forcing militaries to rethink traditional air defence strategies, with countries increasingly seeking cheaper, more scalable ways to counter aerial threats, according to Abu Dhabi-based defence and technology group Edge.

As recent conflicts have highlighted the growing role of drones, armed forces are increasingly reassessing the economics of relying on costly interceptor missiles to neutralise inexpensive unmanned systems.

“There is increasing recognition globally that using expensive interceptors against low-cost drones is not always economically sustainable, particularly as threats become more numerous, distributed and difficult to detect,” Miles Chambers, Senior Vice President – International Business at Edge, told media.

Drone warfare has fundamentally changed defence calculations across the Gulf and beyond, he said, with armed forces placing greater emphasis on layered air defence, autonomous surveillance, electronic warfare and rapid-response interception capabilities.

“The aerial threat environment has become significantly more complex, distributed and asymmetric,” Chambers said.

“We are now seeing a wider range of low-cost drones, loitering munitions, swarming systems and AI-enabled autonomous platforms capable of operating at low altitude, with small signatures and high operational flexibility.”

The growing volume and sophistication of drone attacks are compressing decision times and making it increasingly difficult for operators to deal with multiple simultaneous threats using conventional systems alone. As a result, countries are investing in integrated counter-drone architectures that combine radar, electro-optics, electronic warfare, artificial intelligence, and lower-cost interception technologies.

The shift is also driving strong international demand for counter-drone and AI-enabled defence systems, according to Chambers.

“What customers increasingly value is the combination of operational capability, affordability, speed of delivery and long-term industrial collaboration, particularly as defence requirements evolve in response to the changing character of warfare,” he said.

Edge said it is seeing growing interest in autonomous platforms, precision-guided munitions, naval systems, counter-unmanned-aerial technologies, and AI-enabled solutions that can be rapidly fielded and integrated.

He said the threat extends beyond military targets, with airports, ports, energy facilities, public venues and other critical infrastructure becoming increasingly vulnerable to low-cost unmanned systems.

Counter-drone systems capable of providing early warning, electronic disruption and, when necessary, kinetic interception are therefore becoming an increasingly important part of civilian infrastructure protection.

Edge said the increasing focus on affordable and scalable defence solutions is being reflected in the scale of programmes it is securing internationally.

Among its largest overseas initiatives is a $7 billion strategic cooperation agreement in Indonesia focused on localised defence manufacturing, technology transfer and capability development.

The company has also secured a Dh9 billion contract with Kuwait’s Ministry of Defence for advanced FALAJ 3 missile boats, one of the region’s largest naval export agreements, alongside a €1 billion programme for BR71 MKII corvettes for the Angolan Navy through Abu Dhabi Ship Building.

Edge is also expanding industrial partnerships in India through technology transfer and local production initiatives.

Artificial intelligence is playing an increasingly important role in speeding up responses. “AI and autonomy are significantly improving the speed and efficiency of threat detection, classification, tracking and response coordination.”

“Human operators remain central to operational decision-making, but AI is increasingly critical for enabling response at operational speed.”

Chambers stressed that human oversight remains central to the company’s approach.

“At Edge, we view autonomy as a means of enhancing operational effectiveness and supporting human decision-making, not replacing it.”

“Our focus is on human-machine teaming architectures that improve situational awareness, reduce cognitive burden and accelerate operational response while maintaining appropriate levels of command authority, accountability and control.”

As demand for autonomous and AI-enabled systems grows, Edge is also expanding its domestic manufacturing capabilities and export ambitions. More than 80 per cent of the company’s products are manufactured in the UAE, supported by over 170 manufacturing and research facilities.

In 2025, the group completed 68 Industry 4.0 transformation projects, including upgrades to 28 production hangars using advanced automation, augmented reality and virtual reality technologies, smart manufacturing systems and workforce training programmes. The upgrades have collectively doubled production capacity across key assembly lines.

Edge recently announced a joint venture with US defence technology firm Anduril Industries to establish the Edge-Anduril Production Alliance, which will support the development and production of next-generation autonomous air vehicles and AI-enabled systems for regional and international markets.

“The UAE is increasingly positioned to become a globally relevant hub for advanced autonomous and AI-enabled defence technologies, combining industrial agility, advanced infrastructure, favourable regulatory frameworks and strong government support for technology development,” Chambers concluded.