UAE pulled the plug on financing the development of the upgraded F5 fighter jet after negotiations on joint financing with France broke down.This comes after Paris offered Abu Dhabi the opportunity to join the program in December 2025 in exchange for investment, but without the participation of local companies or access to technology.According to La Tribune, the UAE was expected to contribute around €3.5 billion to the program, which is estimated to cost approximately €5 billion.Instead, France will now carry the entire burden alone through an expanded Military Programming Law, despite intensifying pressure from European rearmament and multiple competing defence priorities. The Rafale F5 has become far more than another fighter upgrade because French officials increasingly regard it as a sovereign insurance policy against uncertainty surrounding Europe’s future combat aircraft projectsReportedly, French aircraft manufacturer Dassault Aviation unveiled the first Rafale fighter jet for the United Arab Emirates Air Force. In total, the UAE ministry of defence has placed an order for 80 aircraft, which will replace the Mirage 2000-9 fighters manufactured by the same company in the country’s air force.This is the largest order of Rafale aircraft for a single country among all export customers. This volume has made the country an attractive potential buyer of additional services, including the F5 modernization standard.Meanwhile, delivery of the first batch of Rafale fighters is expected by the end of 2026.The F5 standard is to feature a Thales RBE2 XG radar based on gallium nitride, an upgraded SPECTRA electronic warfare suite, new optoelectronic sensors, conformal fuel tanks, and a Safran M88 T-REX engine, which is expected to provide a 20% increase in afterburner thrust.In addition, the modernisation includes the integration of the UCAS escort drone. However, according to Dassault CEO Eric Trappier, it has not yet been officially launched. Against this backdrop, the loss of potential UAE funding further complicates financing for the entire project package.By the end of 2022, due to budget constraints, only 20% of French Rafale aircraft were equipped with RBE2 AESA radars.Starting with the fourth tranche, all Rafale aircraft are equipped with RBE2 AESA radars. However, in 2023, General Stéphane Mille noted that at that time, the new radars were in use on only 25 aircraft, and by 2030, the fleet of aircraft equipped with them is expected to grow to 75 units.