Bloomberg: UAE considers new investments in Ukrainian and European defence companies

Officials in Abu Dhabi are discussing a new investment vehicle focused on the defence sector. The fund would likely invest in defence companies worldwide, Bloomberg reports. Ukrainian drone manufacturers are among those under consideration.

Through this initiative, the UAE seeks to centralise its defence investment efforts and expand domestic production. Investments may target established European and US companies, Ukrainian and Turkish drone manufacturers, and venture capital stakes in niche technologies.

Discussions on the structure and strategy remain at an early stage. However, it is known that the Crown Prince of Abu Dhabi and the CEO of Mubadala Investment Co., a government-controlled investment company, have taken part in them. Official representatives have not publicly commented on the negotiations.

The UAE has taken an active interest in defence technologies following Iranian attacks. Only in recent days, Iran struck the country’s territory with drones and missiles, causing a fire at an oil and gas facility in one of the emirates. Defender Media previously reported that the UAE sought to procure 5,000 interceptor drones from TAF Industries for protection purposes.

In addition, EDGE – a defence group owned by the UAE’s sovereign wealth fund – is seeking to acquire a 30% stake in Fire Point. The deal was blocked by the Antimonopoly Committee of Ukraine. However, as Fire Point CEO Iryna Terekh has stated, the company has already submitted a second application.

Finally, Ukraine has signed so-called Drone Deals with the Emirates, Qatar, and Saudi Arabia, providing for cooperation in the fields of security and defence. These are 10-year agreements that include the export of Ukrainian weapons and the construction of production lines both in Ukraine and in partner countries.