Skip to main content
invest in estonia


Milrem Robotics raises the largest foreign investment in Estonia’s defence sector

Defence conglomerate EDGE has acquired a majority stake in Estonia's defence firm Milrem Robotics. The deal is considered the largest foreign investment in Estonia's defence sector.

EDGE, a defence conglomerate based in the UAE, has acquired a majority stake in Estonia’s defence company Milrem Robotics as it seeks to develop capabilities in robotics and autonomous systems. The deal will allow both companies to share technology and expertise, expand their resources, and provide Milrem with the necessary support to further international growth.

According to the announcement, Milrem Robotics will become a new entity under EDGE’s platforms and systems cluster. The companies did not disclose the value of the deal, but it is named to be the largest foreign investment in Estonia’s growing defence industry.

The investment will help Milrem to expand its workforce, step up production, and grow its footprint internationally. Additionally, EDGE will gain access to markets in Northern Europe and beyond. “A presence in Estonia also provides EDGE with strategic access to Northern Europe, increasing valuable opportunities for us across the continent and further afield, and strengthens our position as a serious global player in this sector,” said Mansour AlMulla, managing director and chief executive of EDGE Group.

From repairs to innovations

Milrem Robotics was established in 2013 and employs about 200 people. CEO Kuldar Väärsi explained to Invest Estonia that the company was initially a bus repairing company but found a new line of activity in the repair and maintenance of heavy machinery for the Ministry of Defence. Milrem split in 2017, with Milworks focusing on repairs and maintenance and Milrem Robotics on robotics. After the split, Finland’s Patria, a state-owned defence company, has acquired a 60% stake in the repairs and maintenance operations entity.

Milrem Robotics’ products have been sold to 16 countries, including the US, Spain, the Netherlands, Norway, France, Germany, and the UK. The company will continue working with Krauss-Maffei Wegmann, “whose expertise has been instrumental to Milrem Robotics’ work since acquiring a stake in 2021,” said Kuldar Vaarsi. Besides Krauss Maffei-Wegmann and Kuldar Väärsi, others shareholders include Estonian private investors, among them company employees as minority shareholders.

After the new deal, the company will continue to be based in the Estonian capital Tallinn, according to the statement. Its main products are the THEMIS and Multiscope unmanned ground vehicles, the Type-X unmanned combat vehicle, and the MIFIK land vehicle autonomy package.

The addition of EDGE as a new majority owner will allow Milrem to “significantly and more efficiently contribute to the development of Estonia’s defence capability,” said Riho Terras, chairman of the supervisory board of Milrem Robotics. “There is great potential here for both companies, and our investment in Milrem will allow it to take advantage of EDGE’s considerable resources,” added Mansour AlMulla

The move comes as the UAE moves ahead with its Operation 300B strategy, which seeks to increase the contribution of the local industrial sector to the country’s gross domestic product to $81B  by 2031. The latest transaction is “an investment in the future of EDGE, which is laser-focused on the development of such capabilities across its multiple domains,” said Faisal Al Bannai, chairman of EDGE Group.

Want to invest in Estonia? Read more about the Defence business opportunities Estonia offers, or send us an e-Consulting request to get more detailed information. 

News & events

Need more information?

Need more information?

What is it like to run a business in Estonia? How to benefit from the e-solutions and the efficiency of our business culture? What are the opportunities in specific sectors? Who to partner up with?

The Estonian Investment Agency’s team is happy to help you via its complimentary e-Consulting service, organize online or offline follow-up events such as virtual investment visits and guide you through the fairly simple process of investing in Estonia.

Request e-consulting