The UAE's state-run WAM news agency said the "Sea Dagger 2017" exercise began today.
It offered no details about where the exercise would take place.
The UAE sits near the mouth of the Persian Gulf and near the strategic narrow Strait of Hormuz, through which nearly a third of all oil traded by sea passes.
Gulf Arab countries have grown worried about Iran after its nuclear deal with world powers.
Iran has threatened to close the strait before. The Islamic Republic also has had a series of tense naval encounters with the US Navy over the last year.