UAE-Israel relations deepen as they form a joint defence fund for new weapon systems
The United Arab Emirates (UAE) and Israel are reportedly forming a joint fund to acquire and develop new weapon systems amid rising regional tensions following the war with Iran. A Middle East Eye report, citing current and former US officials familiar with the discussions, says the cooperation would cover joint procurement of air defence systems and counter-unmanned aircraft systems (C-UAS).
Active US officials have said the two countries will pursue ‘joint acquisition’ of weapons as part of their new defence partnership, with the UAE also said to be financing the development of Israeli air-defence technology.
The deal is said to have gained momentum after Prime Minister Benjamin Netanyahu secretly visited the UAE during the US-Israel war against Iran. So far, the Israeli and UAE embassies in Washington have not commented publicly on the report.
Sources cited by Middle East Eye described the joint fund as focusing on C-UAS and other air-defence technologies. A former US official said ‘a lot of money’ has been earmarked for the fund and that the procurement could extend beyond air-defence systems.
Yoel Guzansky, a senior researcher at the Institute for National Security Studies in Tel Aviv, said UAE-Israel relations are at their closest in history. ‘The UAE-Israel relationship is the best it has ever been. This is the closest cooperation Israel has ever had with an Arab country,’ he said.
According to Guzansky, the establishment of a joint fund is a logical step given Israel’s advanced defence tech and the UAE’s substantial financial resources. ‘Israel needs UAE money. We have technology, but lack resources. The UAE has resources, but lacks technology,’ he said.
During February’s conflict, Iran launched thousands of drones and missiles at the Gulf in response to US-Israel strikes, with the UAE among the hardest hit. The US Ambassador to Israel, Mike Huckabee, even confirmed that Israel deployed Iron Dome air-defence systems and personnel to the UAE during the conflict.
Defence cooperation between the UAE and Israel is seen as a continuation of relations normalised under the Abraham Accords in 2020.
In June 2025, UAE defence contractor Edge Group bought a 30% stake in Israeli firm Thirdeye Systems, which develops AI-based drone technology.
Bernard Haykel, a Near East studies professor at Princeton University, said the arrangement makes sense for both sides. ‘This is a continuation of their defence cooperation and it makes sense for both parties,’ he commented.
Eurasia Group analyst Firas Maksad noted Gulf states’ concerns about the outcome of Washington’s dealings with Iran, particularly regarding the Strait of Hormuz and threats from Tehran’s missiles and drones. ‘As the Iran relationship becomes more confrontational, the UAE is drawing closer to Israel and deepening security ties,’ he said.
By contrast, Saudi Arabia has broadened security co-operation with Pakistan, Turkey and Egypt amid concerns about regional stability.