The third edition of the World Defense Show in Riyadh serves as a backdrop for a major shift in the North African defence industry. Egypt’s state-owned Arab Organisation for Industrialization, commonly referred to as the AOI, has transitioned from a traditional procurement model to one defined by local production and regional export. On February 8, 2026, the organisation presented its most sophisticated technologies to date, signalling a deliberate move toward industrial self-sufficiency, increasing arms export, and strategic autonomy.
Established in 1975, the AOI operates as a powerhouse ofthe Egyptian military industry, overseeing nine major facilities from its Cairo headquarters. Historically a joint venture between Egypt and several Gulf nations, it now operates under the direct supervision of the Egyptian presidency. Major General Mokhtar Abdel Latif, the AOI Chairman, describes the current strategy as a push to integrate cutting-edge technologies while deepening local manufacturing. This industrial base allows Cairo to reduce its reliance on foreign technology and mitigate the risk of politically motivated arms embargoes.
The systems displayed in 2026 represent the fruit of several strategic partnerships, notably with Turkish and Chinese firms. This collaborative approach focuses on technology transfer rather than simple off-the-shelf purchases, enabling Egypt to develop a domestic supply chain for complex systems such as loitering munitions and electronic warfare suites.
THE HAMZA-3 LOITERING MUNITION
A centrepiece of the 2026 exhibit is the Hamza-3, the latest and most capable evolution of the Hamza series. This suicide drone or loitering munition features a notable range of 1,800 km and a maximum flight endurance of 10 hours. Such specifications suggest a platform designed for strategic depth, capable of reaching distant targets while maintaining a persistent presence over the battlefield.
The Hamza-3 operates as a fire-and-forget system, utilising integrated cameras and anti-jamming sensors to identify and strike moving targets autonomously. A company official noted that the platform also possesses swarming capabilities, allowing multiple units to coordinate their attack patterns to overwhelm enemy air defences. While some subsystems are currently sourced from China, the AOI intends to localise full production within Egyptian factories. This follows the debut of the Hamza-2 in late 2025, which is scheduled to enter mass production throughout 2026.
The first iteration, the Hamza 1, was unveiled last year during the EDEX 2025 defence exhibition in Egypt as a localised version of Havelsan’s Baha sub-cloud UAV. This fixed-wing, vertical takeoff and landing (VTOL) drone is optimised for intelligence, surveillance, and reconnaissance (ISR) missions, featuring a nose-mounted gimbal.
THE SAKR 105 LAUNCHER
For ground operations, the AOI presented the Sakr 105, a shoulder-mounted 105mm rocket launcher designed for high versatility. This system is engineered for anti-tank roles and thermobaric missions, the latter being particularly effective for clearing fortified positions, tunnels, and urban strongpoints through a fuel-air explosive blast.
The Sakr 105, first unveiled at the EDEX 2025, features a firing rate of three rockets per minute and an operational range between 50 and 700 meters. The system utilises a reusable launch structure paired with a disposable rocket tube, making it a cost-effective solution for modern infantry. It comes equipped with the D98 optical sight, which is compatible with night vision technology, ensuring operational effectiveness in low-light conditions. The system fills a vital gap in the Egyptian military’s tactical arsenal, providing squad-level forces with a mobile and potent strike capability against armoured threats and hardened structures.
ELECTRONIC WARFARE AND COUNTER-UAS SOLUTIONS
As unmanned aerial systems, or UAVs, become ubiquitous in modern conflict, the AOI has prioritised counter-UAS (C-UAS) technology. The DJ 400P anti-drone jammer and the Haris-2 detection system represent Cairo’s response to this evolving threat. The DJ 400P is designed specifically to neutralise mini and micro UAVs, providing 360-degree coverage with a four-kilometre radius.
The Haris-2 system, which was displayed mounted on a four-wheeled armoured vehicle, combines detection and countermeasure capabilities. These electronic warfare tools utilise both soft-kill methods, such as jamming, and integration with kinetic systems to protect critical infrastructure and mobile units. This localised development of electronic warfare suites demonstrates a high level of technical maturity within the AOI’s electronics factories.
A major driver of Egypt’s recent industrial success is a deepening alliance with Turkey. In February 2026, the two nations finalised a defence cooperation package valued at approximately $350 million. This deal includes the export of the Turkish Tolga short-range air defence system to Egypt for $130 million. The remaining $220 million of the package is dedicated to establishing industrial infrastructure within Egypt. To manage these new facilities and expand export reach across Africa and the Middle East, MKE of Turkey and Egyptian authorities have agreed to form a joint venture company.
The impact of these industrial advancements is already visible in the international market. Major General Abdel Latif recently confirmed a contract with an undisclosed African country for the export of 20 Hamza drones and 10 light armoured vehicles, including the Fahd armoured personnel carrier. The Fahd has been recently upgraded with ceramic armour and a V-shaped hull to enhance resistance against mines and improvised explosive devices. The armoured vehicle has been exported to Burkina Faso, while another African country, Kenya, may likely be interested in the vehicle.
This export deal marks a milestone in Egypt’s journey toward becoming a regional manufacturing hub. By leveraging strategic partnerships with Turkey and China, Cairo is positioning itself as a primary supplier for African and Arab nations seeking modern, localised defence solutions. The transition from regional purchaser to a technology exporter reflects a substantial shift in the Eastern Mediterranean power balance.