The UAE has withdrawn its funding for the Dassault Rafale F5 program. This decision poses a major challenge to the future of France’s next-generation Rafale aircraft. The latest development points to alleged disagreements between the UAE and France over industrial participation, technology sharing and control over sensitive defense systems.
The United Arab Emirates had signed a major agreement in 2021 to purchase 80 Dassault Rafale fighter jets from Dassault Aviation. The UAE had been exploring a partnership with France to finance the development of the Rafale F5. The UAE was expected to cover over €3.5 billion ($4 billion) of the total estimated cost of €5 billion ($5.7 billion) to upgrade to the F5 standard.
This collaboration would help upgrade the aircraft and make it a next-generation fighter jet. The next evolution was expected to enter service in the early 2030s. However, the partnership reportedly broke down after Abu Dhabi demanded a larger role in the aircraft's development and greater access to its major technologies.
One of the biggest disagreements was over access to sensitive technologies that define the Rafale F5’s capabilities. The UAE is understood to have sought access to advanced components such as next-generation radar systems, electronic warfare technologies and high-end sensor suites. These systems are central to the aircraft’s future performance and are considered strategically sensitive because the Rafale platform also supports elements of France’s nuclear deterrence posture.
Another issue was that the UAE wanted more industrial involvement. The country invested heavily in developing its domestic defense industry and sought to involve local companies in every aspect of the Rafale F5 program.
This could allow Emirati firms to gain technological expertise and potentially use their own systems or weapons on the aircraft. But France wanted to keep control of the development process within its own defense industry. Thus, the tussle over access and control eventually led to the end of the deal between the UAE and France.