The United Arab Emirates is planning to create a new investment structure to strengthen the country's defense capabilities amid regional conflicts. The initiative involves purchasing stakes in global arms manufacturers, including Ukrainian ones.
The United Arab Emirates is planning to create a new investment structure to strengthen the country's defense capabilities amid regional conflicts. The initiative involves purchasing stakes in global arms manufacturers, including Ukrainian ones.
As Bloomberg reports , citing its own sources, preliminary negotiations have been held in Abu Dhabi regarding the creation of a new fund with the participation of high-ranking officials and the country's leadership.
The new entity is likely to be mandated to acquire stakes in defense companies around the world to diversify supplies for the UAE. According to the sources, investments could include well-known firms in Europe and the United States, as well as Ukrainian and Turkish drone manufacturers, as well as venture bets on niche technologies.
With wealth funds controlling nearly $2 trillion, Abu Dhabi is among the world's wealthiest cities and is already known to be investing billions of dollars in sectors ranging from finance to artificial intelligence. The emirate's latest move could add a wealthy buyer to the defense sector, where firms are already benefiting from increased spending around the world.
Discussions on the structure and strategy of Abu Dhabi's new initiative remain at an early stage, and ultimately this structure may not materialize.
The UAE is already a major arms buyer, according to a March report by the Stockholm International Peace Research Institute (SIPRI), accounting for 2.7% of global imports between 2021 and 2025. According to the SIPRI database, the country has built up an advanced arsenal that includes Patriot and THAAD missile systems, F-16 fighter jets and Black Hawk helicopters, with the US, France and South Korea as its main suppliers.
