France will finance the development of the next-generation Rafale F5 fighter jet entirely on its own after the United Arab Emirates withdrew from co-funding negotiations, according to reports from French daily La Tribune.
Paris had sought up to €3.5 billion ($4 billion) from Abu Dhabi toward the €5 billion ($5.7 billion) program cost. Talks collapsed in late December 2025 amid disagreements over technology transfers, particularly advanced optronics and deeper involvement in development. Tensions peaked during French President Emmanuel Macron’s visit to Abu Dhabi, where the UAE demanded more substantial returns that France ultimately refused to provide.
The French Defense Ministry now assumes the full burden under an updated Military Programming Law, set for review by the Council of Ministers on April 8, 2026. This adds strain to an already tight defense budget, which includes an extra €36 billion on top of the original €413 billion envelope, though officials say it falls short. The move may delay F5 upgrades, deliveries, and related programs like a stealth combat drone.
The Rafale F5, dubbed a Super Rafale, features upgrades such as the Thales RBE2 XG gallium nitride radar, enhanced SPECTRA electronic warfare suite, new optronic sensors, conformal fuel tanks, and compatibility with the MBDA ASN4G hypersonic nuclear missile.
Franco-Emirati ties have since improved amid regional conflicts, with French Rafale pilots supporting UAE intercepts against Iranian drones. Sources suggest Abu Dhabi could revisit funding after 2027 if conditions stabilize.