UAE prepares to launch $2 trillion fund to buy up defense companies and Ukrainian drone makers, Bloomberg says
The United Arab Emirates is considering launching a new investment fund worth up to $2 trillion, which could be used to acquire stakes in global defense companies, including drone manufacturers from Ukraine.
The initiative is at an early stage and no final decisions have been made yet, Bloomberg reports.
According to preliminary data, the new entity may be required to invest in defence companies from various countries to diversify supplies to the UAE. This includes companies from Europe and the US, as well as Ukrainian and Turkish drone manufacturers, and venture capital investments in technology niches.
Abu Dhabi, whose sovereign wealth funds manage nearly $2 trillion, is among the world’s wealthiest financial centers. The emirate is already actively investing in various sectors, from finance to artificial intelligence.
Potential impact on the global defence sector
The new fund could strengthen the UAE’s position as a major investor in the defense industry, which is already benefiting from global growth in military spending. At the same time, discussions on the structure and mechanisms of the initiative are continuing.
The UAE is already a major player in the arms market
According to the Stockholm International Peace Research Institute, the UAE is one of the key arms importers, accounting for 2.7% of global imports in 2021–2025. The country has built a modern arsenal that includes Patriot and THAAD systems, F-16 fighter jets, and Black Hawk helicopters, with the United States, France, and South Korea serving as its main suppliers.
As reported earlier, on 4 May, the United Arab Emirates withdrew from the Organization of Arab Petroleum Exporting Countries (OAPEC), an intergovernmental organization that does not set production policy for its members.
Earlier, on 28 April, the UAE also announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and ended its participation in production cut agreements within the OPEC+ format, which also includes Russia.
