France set to fund Rafale F5 alone after UAE withdraws from co-financing talks

France will finance the full development of the Dassault Rafale F5 fighter jet standard after the United Arab Emirates withdrew from co-funding negotiations. The UAE had been prepared to contribute up to €3.5 billion toward the roughly €5 billion ($5.7 billion) program, but talks collapsed in late 2025 over disagreements on technology transfers, particularly in optronics.

Tensions peaked during French President Emmanuel Macron’s visit to Abu Dhabi in late December 2025. France refused to share sensitive technologies, prompting Abu Dhabi to exit the partnership. As a result, France’s Defense Ministry must now cover the entire cost, straining the defense budget and likely delaying upgrades and deliveries.

The Rafale F5, often called a Super Rafale, features upgrades including the Thales RBE2 XG gallium nitride radar, an enhanced SPECTRA electronic warfare suite, new optronic sensors, and conformal fuel tanks. It will integrate the ASN4G hypersonic nuclear missile and operate alongside a stealth combat drone derived from the nEUROn demonstrator for suppression of enemy air defenses.

Development contracts exceed €4 billion, with entry into service around 2035. The updated Military Programming Law, set for review by the Council of Ministers on April 8, 2026, adds €36 billion to the €413 billion envelope but may fall short of covering the increased burden.