UAE weapons contractor invests in an Israeli defense supplier

Abu Dhabi — Thirdeye Systems, an Israeli military supplier, has announced the sale of a 30% stake to EDGE, a United Arab Emirates state-owned defense conglomerate, for $10 million. The investment represents one of the few public investments by an Emirati firm in Israel since the Gaza war began 15 months ago.

In addition to this stake purchase, EDGE will invest $12 million into a new joint venture, where it will hold a majority share alongside Thirdeye Systems. A third, undisclosed party will own 6%, while Thirdeye Systems will retain a 43% stake in the joint venture.

CEO Lior Segal stated that EDGE’s investment will facilitate Thirdeye Systems’ expansion into new markets. EDGE President Rodrigo Torres highlighted that the deal is mutually beneficial and will accelerate the development of new systems.

In the last 15 months, many Emirati companies have been reluctant to engage openly with Israeli firms, primarily due to the ongoing conflict.

The UAE established diplomatic relations with Israel in 2020, which initially sparked a wave of business activity between the two nations, though this has since slowed in the public eye due to the conflict. Despite condemning Israel’s military actions in Gaza, Abu Dhabi has maintained its diplomatic ties with Israel. Thirdeye Systems is known for its drone detection technology and supplies both the Israeli military and several NATO members.

The company’s share price has risen dramatically over the past 15 months, driven by new contracts with the Israeli military. As of Tuesday, the share price had increased by 51% since the war began, reaching 333.8 Israeli shekels ($92.29), according to LSEG data.

EDGE, the largest arms manufacturer in the UAE, is government-owned and announced in 2021 plans to collaborate with state-owned Israel Aerospace Industries to develop unmanned vessels for missions such as submarine detection.