Egypt’s Arab Organization for Industrialization (AOI) has signed a strategic memorandum of understanding with China’s North Industries Corporation (Norinco) to begin joint production of tactical unmanned aerial systems. The collaboration will integrate Chinese subsystem expertise with AOI’s expanding Aircraft Factory capabilities, underscoring Cairo’s ambition to strengthen domestic defense manufacturing and reduce reliance on foreign suppliers.
A key highlight of the agreement is the unveiling of the Hamza-2 combat drone, a new armed UAV derived from China’s ASN-209 platform. Equipped with precision-guided munitions, the Hamza-2 is designed for both reconnaissance and strike missions, marking a notable shift in Egypt’s drone strategy toward operational roles that extend beyond surveillance. However, officials have not yet confirmed whether the Hamza-2 will be part of the joint production line or disclosed initial manufacturing volumes, timelines, or export targets.
The signing took place during the opening of the Egypt Defence Expo (EDEX) in New Cairo, an event inaugurated by the Egyptian President and attended by more than 450 defense manufacturers and delegations from over 100 countries. The expo serves as a major platform for Egypt to showcase its growing defense-industrial capabilities and attract new partnerships.
Alongside the China agreement, AOI finalized additional deals with the UAE’s Abu Dhabi Aviation Group and the UAE-Chinese venture Al-Qalaa Red Flag, covering co-production, maintenance, and export programs. Egypt also expanded its cooperation with France’s Dassault Aviation, including local production of Rafale fighter jet components—further positioning the country as an emerging defense-industrial hub in the Middle East and North Africa.
