Egypt and France have taken a significant stride in defence-industrial collaboration with the expanded partnership between Thales and Arab International Optronics (AIO), unveiled at Egypt Defence Expo 2025 (EDEX 2025). This strategic move underscores Egypt’s ambition to bolster its technological sovereignty and emerge as a regional hub for high-value manufacturing.
The new framework between Thales and AIO encompasses six key areas of cooperation, marking one of Egypt’s most ambitious defence-industrial localization projects. The partnership aims to enhance joint development, training, manufacturing, and technology transfer, reinforcing Egypt’s defence capabilities and industrial base.
Central to this collaboration is the establishment of the Thales Academy in Egypt, a regional training hub that will focus on optronics, cybersecurity, artificial intelligence, radio telecommunications, and radar systems. The academy will offer certified programmes delivered by Thales specialists, fostering partnerships between Egyptian and French universities and enhancing the skill sets of local talent.
In the realm of advanced fire control systems (FCS), Thales and AIO will co-develop an upgrade kit for heavy armoured vehicles, leveraging AIO’s expertise in fire-control technologies and Thales’ global excellence in optronics and targeting solutions. This initiative aims to significantly enhance the precision and survivability of armoured vehicles on the battlefield.
The partnership also includes the joint development of an enhanced remote-controlled weapon system (RCWS), integrating AIO’s manufacturing capabilities with Thales’ expertise in laser-guided rockets. This collaboration will result in a laser-guided rocket variant of the widely deployed AIO X29 RCWS, further bolstering Egypt’s defence capabilities.
Additionally, the partnership will introduce an integrated ground surveillance system for the Egyptian Armed Forces, utilising Thales ground radar and the Hand-Held Thermal Imager (HHTI). Managed by a unique command-and-control computer, this solution will enable rapid detection and identification of threats, enhancing the country’s surveillance and security infrastructure.
Localised sustainment and lifecycle support will be achieved through the development of a service centre dedicated to supporting the Thales Hand-Held Thermal Imager within AIO’s facilities. This initiative will ensure the longevity and effectiveness of the thermal imagers deployed with the Egyptian forces.
Furthermore, the collaboration will deepen industrial cooperation by integrating AIO components and sub-assemblies into Thales’ global supply chain. This move will increase Thales’ product throughput and competitiveness while enabling AIO to further develop its industrial capabilities.
Sherif Barakat, CEO of Thales in Egypt, emphasised the significance of this partnership, stating, “With the reinforcement of this strong partnership with AIO, Thales in Egypt is proud to contribute to Egypt’s technological sovereignty. By further anchoring Thales’ advanced solutions within Egypt, both our companies are committed to transforming Egypt into a regional technology hub capable of supporting and exporting high-value, locally produced solutions.”
The expanded Thales-AIO partnership is part of a broader shift toward technology transfer, local production, and long-term industrial integration. During EDEX 2025, the Arab Organization for Industrialization (AOI) signed two major agreements with leading French defence manufacturers, further underscoring this trend.
AOI concluded a cooperation agreement with Sofema, a French aerospace maintenance specialist, to localise the overhaul and repair of aircraft engines, including the LARZAC engines powering Egypt’s fleet of Alpha Jet aircraft. This agreement will enhance Egypt’s domestic aerospace-support capacity and reduce reliance on foreign service centres.
Additionally, AOI and Dassault Aviation, the manufacturer of the Rafale fighter jet, formalised a new partnership to integrate Egyptian facilities into Dassault’s global supply chain. Under this agreement, AOI will produce certified spare parts and components to Fourth Industrial Revolution standards, positioning Egypt as an approved supplier for Dassault platforms.
These agreements complement the expanded cooperation with Thales, signalling a coordinated effort to localise defence technology, expand industrial capacity, and strengthen long-term French-Egyptian partnerships in production, maintenance, and advanced training.
EDEX 2025, the largest edition of Egypt’s defence exhibition since its launch in 2018, hosts over 450 global defence and security manufacturers from Europe, Asia, the Middle East, and Africa. The event has attracted more than 100 official delegations, including defence ministers, chiefs of staff, national armament directors, and heads of state defence industries, as well as military and industry visitors from 86 countries. The exhibition covers a full range of modern military technologies, including armoured vehicles, air-defence systems, naval capabilities, UAVs, electronic-warfare tools, command-and-control platforms, and next-generation protective equipment.