In a move that signals deepening ties between two influential Middle Eastern powers, Turkish defense firm Havelsan and Egypt’s Arab Organization for Industrialization have sealed an agreement to jointly produce autonomous unmanned aerial vehicles.
The announcement came on August 27, 2025, marking a fresh chapter in bilateral defence cooperation. This partnership focuses on vertical takeoff and landing models, with assembly and production set to occur in Egypt under Turkish technical guidance. The deal builds on a prior arrangement from March 2025 for unmanned ground vehicles, reflecting a strategic alignment aimed at bolstering local manufacturing capabilities and tapping into emerging markets across Africa and the Arab world.
Havelsan, a subsidiary of the Turkish Armed Forces Foundation, stands as a pillar in Turkey’s defence technology sector. Established in 1982 and headquartered in Ankara, the company specialises in software development, autonomous systems, command-and-control solutions, simulation technologies, and cybersecurity. With a workforce exceeding 2,000 engineers and technicians, Havelsan has delivered projects for the Turkish military and international clients, including NATO and African allies. Its portfolio spans military simulations for pilot training, integrated combat management systems for naval vessels, and advanced data analytics for intelligence operations. In recent years, Havelsan has pivoted toward unmanned platforms, recognising the growing demand for cost-effective, versatile assets in modern warfare. This shift aligns with Turkey’s broader ambition to become a global exporter of defence technologies, evidenced by sales to countries like Ukraine, where Turkish drones have altered battlefield dynamics.
On the Egyptian side, the Arab Organisation for Industrialisation serves as a state-owned powerhouse overseeing a network of factories dedicated to military and civilian production. Founded in 1975 through a collaboration between Egypt, Saudi Arabia, the United Arab Emirates, and Qatar, AOI operates under the direct supervision of a committee chaired by Egypt’s president. Headquartered in Cairo, it manages nine major facilities producing everything from armored vehicles and ammunition to electronics and aircraft components. AOI’s mandate emphasises licensed production and technology transfer, allowing Egypt to reduce reliance on imports while fostering domestic expertise. Over the decades, it has partnered with Western firms like Lockheed Martin for helicopter assembly and Russian entities for missile systems. This latest venture with Havelsan fits into Egypt’s Vision 2030, a national plan prioritising sustainable development through industrialisation and technological localisation. AOI Chairman Major General Mokhtar Abdel Latif described the memorandum of understanding as a vital step toward deepening local manufacturing and integrating cutting-edge technologies to meet Egyptian needs and facilitate exports.
The agreement itself emerged from a signing ceremony in Cairo, where Havelsan General Manager Mehmet Akif Nacar expressed enthusiasm about collaborating with a robust partner like AOI. He noted that the partnership would introduce advanced UAV technologies to the region, enhance production capacities, and open doors to the African market. Initially announced with fanfare, including a video showcasing the BAHA UAV, Havelsan later removed the press release from its website, though details continued to circulate through media channels. The focus lies on vertical takeoff and landing drones, which eliminate the need for runways and suit diverse terrains, from urban environments to remote borders. Production will occur at Egypt’s Kader Factory for Developed Industries, the same site handling the unmanned ground vehicle project initiated earlier in the year. Turkish Ambassador Salih Mutlu Sen confirmed that manufacturing of these ground vehicles has already begun, underscoring the momentum in joint endeavours.
Central to this collaboration are Havelsan’s flagship UAV models, particularly the BAHA and BULUT, both of which have entered service with Turkish forces in 2025. The BAHA, a sub-cloud autonomous UAV, exemplifies a compact design for tactical operations. With a maximum takeoff weight of 28 kilograms, including a 2-kilogram payload, it features a 4-meter wingspan and electric propulsion for vertical takeoff and landing. Its endurance reaches up to two hours, with a communication range of 50 kilometers, making it ideal for reconnaissance under adverse weather where larger drones struggle. Equipped with electro-optical and infrared sensors, BAHA has been deployed for border security in Turkey, providing real-time imagery to ground troops. In April 2025, it officially joined the Turkish Armed Forces’ inventory, proving its worth in drills simulating earthquake response and surveillance tasks. Operators praise its runway-independent operation, which allows launches from confined spaces like forested areas or urban rooftops.
Complementing BAHA is the BULUT UAV, a larger platform tailored for extended missions. Powered by a gasoline engine with electric vertical takeoff support, BULUT boasts a 6-hour flight time, a 5-kilogram payload capacity, and an 80-kilometre range. It integrates electro-optical, infrared, and laser rangefinder sensors, enabling persistent intelligence gathering even in GNSS-denied environments through anti-jamming features. BULUT’s fully autonomous flight system handles takeoff, landing, and waypoint navigation without human intervention, reducing operator workload. Introduced to Turkish security forces in the summer of 2025, it has been earmarked for swarm operations, where multiple units coordinate to overwhelm defences. In operational zones, BULUT streams live video feeds, capturing high-resolution data for command centres. Havelsan envisions it playing a key role in reconnaissance over contested areas, drawing from lessons in conflicts like Nagorno-Karabakh, where similar Turkish drones disrupted Armenian positions.
Havelsan’s portfolio extends to the BOZBEY system, tested for maritime applications aboard frigates and unmanned surface vessels. With a 3-kilogram payload and 6-hour endurance, BOZBEY brings VTOL capabilities to naval operations, enhancing surveillance in littoral zones. Demonstrated in collaborations with Malaysia, it highlights Turkey’s push into international waters. Together, these platforms showcase Havelsan’s layered approach: BAHA for short-range tactical intel, BULUT for mid-endurance persistence, and BOZBEY for specialised environments. Their modular designs allow customisation, such as adding anti-tank munitions or electronic warfare suites, adapting to user requirements.
This UAV deal unfolds against a backdrop of warming Turkey-Egypt relations, a turnaround from years of strain. Tensions peaked in 2013 when Egypt’s military ousted President Mohamed Morsi, an ally of Turkey’s ruling Justice and Development Party. Ankara condemned the move, hosting Muslim Brotherhood figures and severing diplomatic ties. Rivalries extended to Libya, where Turkey backed the Government of National Accord against Egyptian-supported forces, and the Eastern Mediterranean, with disputes over gas exploration. However, geopolitical shifts prompted reconciliation. In July 2023, the nations restored full diplomatic relations, exchanging ambassadors after exploratory talks. President Erdogan’s visit to Cairo in February 2024, his first in over a decade, yielded discussions on trade, energy, and security with President Abdel Fattah el-Sisi. The Gaza conflict accelerated this thaw, aligning both countries in calls for ceasefires and aid delivery.
Defence cooperation has gained traction since. In 2024, joint military exercises involved special forces, focusing on counter-terrorism and urban warfare. Egypt joined Turkey’s TAI Kaan fighter jet program in July 2025, diversifying from Western suppliers amid concerns over U.S. restrictions. Arms deals followed, including Turkish drones to Egypt, announced ahead of Erdogan’s visit. These steps counterbalance influences from powers like Russia and China, while addressing shared threats such as instability in Libya and the Horn of Africa. Egypt’s deployment of forces to Somalia in coordination with Turkey exemplifies this synergy, transferring weaponry to federal troops amid regional tensions.
For Egypt, local UAV production reduces import costs and builds self-reliance, aligning with efforts to modernise its air force. AOI’s factories, already producing licensed systems like the M1 Abrams tank variants, gain expertise in autonomy and sensors. Exports to Arab and African nations could generate revenue; countries like Sudan and Nigeria have shown interest in affordable drones for border monitoring. Turkey benefits by accessing Egypt’s vast market and using Cairo as a gateway to Africa, where demand for surveillance tech surges amid insurgencies.
Turkish drones, including Bayraktar models similar to Havelsan’s offerings, proved decisive in Ukraine, destroying Russian armour and artillery from standoff distances. In Libya, they supported Tripoli forces against Haftar’s advances, shifting momentum through precise strikes. Azerbaijan’s 2020 victory in Nagorno-Karabakh relied heavily on such systems to neutralise air defences. For Egypt, these capabilities could enhance operations in Sinai against ISIS affiliates, where rugged terrain demands VTOL flexibility. Joint production might lead to hybrid variants, incorporating Egyptian avionics or payloads, fostering innovation.
Meanwhile, in a similar development, in 2020, Egypt and Belarus signed a bilateral agreement to jointly design and develop unmanned aerial vehicles ( UAVs) in Egypt; the business is worth roughly $1 million. The contract will see Belarus setting up an enterprise in Egypt to develop, supply UAVs, and train drone pilots, says Chairman of the National Academy of Sciences of Belarus, Vladimir Gusakov.