JERUSALEM - Israel Aerospace Industries (IAI) said on Thursday it will jointly develop an advanced drone defence system with United Arab Emirates' state-owned weapons maker EDGE.

Israel and the UAE formalised relations last year, brought closer by commercial interests and concern over Iran.

State-owned IAI, a major Israeli defence firm, said in a statement that the companies will develop a Counter-Unmanned Aircraft System "tailored to the UAE market, with wider ranging benefits for the MENA region and beyond".

EDGE, tasked with supplying advanced weapons to the UAE armed forces, is focused on developing drones, unmanned vehicles, smart weapons and electronic warfare equipment rather than conventional weaponry.

(Writing by Dan Williams; Editing by Alexander Smith) ((dan.williams@thomsonreuters.com; +972 (0) 2 6322202; Reuters Messaging: dan.williams.reuters.com@reuters.net))