Hanwha Systems (272210) said it signed a term sheet with the United Arab Emirates' state-run EDGE Group for an integrated air defense network spanning the UAE. Signed on Sept. 15 at EDGE Group's headquarters in Abu Dhabi and announced on Sept. 17, the agreement sets the direction of the country's weapons procurement plans and a phased approach to the project, without finalizing a supply contract or joint venture. The companies plan to develop detailed implementation plans and explore a UAE joint venture, local manufacturing, business operations, and maintenance, repair and overhaul capabilities. Hanwha's proposed multi-layered architecture would connect counter-drone systems, short-range air defenses and Chunmoo multiple rocket launchers with medium- and long-range surface-to-air guided weapon systems. The initiative builds on Hanwha's supply of multifunction radars and other Cheongung-II components to the UAE and could expand its role from weapons supplier to integrated air-defense designer and systems integrator.