Lockheed Martin Wins $142.6 Million Contract Modification to Sustain UAE THAAD Missile Defence System

Washington / Abu Dhabi : Lockheed Martin has secured a $142.6 million contract modification from the United States government to continue long-term sustainment support for the United Arab Emirates’ Terminal High Altitude Area Defense (THAAD) missile defence system, reinforcing Washington’s commitment to strengthening integrated air and missile defence capabilities among key Gulf partners.

The award, issued under the U.S. Foreign Military Sales (FMS) programme, raises the total value of the overarching THAAD sustainment contract to $876.7 million. The contract is being administered by the Missile Defense Agency (MDA) from Huntsville, Alabama, under contract number HQ0147-19-C-5001, with all funds fully obligated at the time of award.

Sustainment of a Critical Missile Shield

The latest modification ensures continued operational readiness of the UAE’s two THAAD batteries, which form the upper tier of the country’s layered missile defence architecture. The scope of work includes logistics and supply chain support, engineering and technical services, hardware and software sustainment, missile and ground system repair, training support, hardware-in-the-loop testing, missile field surveillance, and country-specific engineering enhancements tailored to Emirati operational requirements.

THAAD is designed to intercept and destroy short-, medium-, and intermediate-range ballistic missiles during the terminal phase of flight using hit-to-kill kinetic interceptors, providing protection over wide areas and complementing lower-tier systems such as Patriot.

Strategic Importance for the Gulf

The UAE was the first international customer to acquire THAAD, with deliveries beginning in 2015, marking a major milestone in U.S. missile defence exports. Since then, the system has become a cornerstone of Emirati airspace defence amid a regional environment characterised by growing ballistic and cruise missile proliferation.

Defence analysts view the sustainment award as a signal of deepening U.S.–UAE strategic alignment, particularly as Gulf states prioritise integrated, networked missile defence to counter evolving aerial threats. Continued investment in sustainment reflects the reality that high-end missile defence systems require constant technical support and upgrades to remain effective.

Industrial and Operational Footprint

Work under the contract will be carried out across multiple U.S. locations — including Alabama, Texas, Arkansas, and California — as well as at operational sites in the UAE. While Lockheed Martin has not issued a public statement on the award, the programme is expected to support skilled jobs and specialised defence manufacturing and sustainment capabilities within the U.S. industrial base.

Long-Term Defence Cooperation

The contract modification underscores the long-term nature of missile defence partnerships under the FMS framework, where sustainment, training, and lifecycle support often extend well beyond initial system delivery. As missile threats in the Middle East continue to evolve, systems like THAAD are expected to remain central to regional deterrence and air defence planning.

With the latest $142.6 million award, Lockheed Martin and the U.S. government reaffirm their commitment to ensuring that the UAE’s THAAD system remains fully mission-capable, technologically current, and operationally resilient for years to come.