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Lockheed Martin secures $142.6m contract to sustain UAE's THAAD missile defense system.
Lockheed Martin has secured a $142.6 million contract modification to continue sustainment support for the United Arab Emirates’ THAAD missile defense system under the U.S. Foreign Military Sales program. The award reflects Washington’s continued emphasis on integrated missile defense for Gulf partners facing persistent ballistic and cruise missile threats.
Lockheed Martin has secured a $142.6 million contract modification to continue support for the United Arab Emirates' Terminal High Altitude Area Defense (THAAD) system, signaling deepening U.S. strategic alignment with a key Gulf partner amid rising regional missile threats. The award, issued under the U.S. Foreign Military Sales (FMS) program, brings the total value of the overarching sustainment contract to $876.7 million and underscores the critical role of high-altitude missile defense in Gulf airspace security planning.
Lockheed Martin’s $142.6 million contract modification extends sustainment support for the UAE’s THAAD missile defense system, reinforcing U.S.-backed high-altitude missile defense coverage in a region facing persistent missile threats (Picture Source: U.S. Army)
Under the new agreement, Lockheed Martin Space will deliver an extensive range of sustainment services for the UAE’s two deployed THAAD batteries, including logistics and training, hardware and software development, missile and ground systems repair and return, field surveillance, and specialty engineering adapted to the country’s unique operational environment. The work will be performed across multiple U.S. sites including Sunnyvale, California; Grand Prairie, Texas; and Camden, Arkansas, as well as on the ground in the UAE. The period of performance spans January 2026 to August 2028, ensuring uninterrupted support for a system that has become a strategic pillar of the Emirates’ integrated air and missile defense network.
Originally designed to counter short- and medium-range ballistic missile threats in their terminal flight phase, THAAD uses hit-to-kill kinetic technology to destroy incoming warheads at high altitudes, well above the lower layers covered by systems like the Patriot. In the UAE, THAAD provides upper-tier protection against Iranian ballistic threats and complements existing lower-tier systems in a tightly coordinated defense grid developed in cooperation with U.S. Central Command.
The sole-source nature of the award reflects the exclusivity of Lockheed Martin as the prime contractor for THAAD and the lack of comparable alternatives among U.S. allies. Lockheed remains the only global provider with the engineering depth and proprietary capability to maintain the system’s complex interceptors, fire control, and radar integration architecture.
As tensions persist in the Gulf and Iranian missile proliferation continues to evolve, the sustainment of THAAD in UAE territory is seen by U.S. defense officials as both a deterrence measure and a demonstration of enduring military-industrial cooperation. U.S. defense sources confirm that the Emirates remains among the highest-value FMS clients globally, often opting for full-spectrum support packages that include long-term sustainment and lifecycle upgrades.
The Missile Defense Agency in Huntsville, Alabama, is overseeing the contract (HQ0147-19-C-5001), and funding has been fully obligated at the time of the award. Lockheed Martin has not issued a public statement on the contract, but the deal is expected to support jobs and operations at key THAAD production and sustainment sites in Alabama, Texas, Arkansas, and California.
Beyond its strategic importance in the Gulf, the UAE’s THAAD program also serves as a showcase of interoperability between U.S. and allied missile defense systems in high-threat theaters. Regional analysts note that the continued investment in THAAD sustainment sends a signal of defense continuity even as global attention shifts to conflicts in Eastern Europe and the Indo-Pacific. With this modification, Lockheed Martin not only reinforces its position as the premier supplier of long-range missile defense solutions but also expands its footprint in a region where air superiority and missile interception capability remain paramount to national survival.