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BUSINESS · JUN 13, 2026

Egypt Expands Domestic Defense Manufacturing to Reduce Import Reliance

Egypt is localizing the production of armored vehicles and drones to protect foreign-currency reserves and secure military supply chains.

The Government of Egypt is expanding its domestic defense manufacturing to reduce military spending and decrease reliance on foreign imports. The strategy prioritizes localizing advanced industrial technologies to produce armored vehicles, drones, and air defense systems, including the Jabbar 150 unmanned aerial vehicle and the Raad 300 rocket launcher.

This shift aims to protect foreign-currency reserves and secure supply chains, as the government recognizes that modern warfare requires a high consumption of munitions. To achieve these goals, officials are pursuing joint-production partnerships and collaboration with the private sector, though they acknowledge that complete self-sufficiency in advanced armaments remains unattainable.

Data from the Stockholm International Peace Research Institute indicates that Egypt had the lowest military spending among Arab states in 2025, representing 0.61% of its GDP. The modernization program is intended to improve production efficiency and diversify the sources of weaponry available to the state.


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