The United Arab Emirates is considering creating an investment fund of up to $2 trillion to acquire stakes in defence companies as part of efforts to diversify its supply chain, Bloomberg reported.
The proposed fund would target defence firms in Europe and the United States, as well as Ukrainian and Turkish drone manufacturers. Additionally, the strategy could include venture investments across specialised technology sectors linked to defence and advanced capabilities.
Abu Dhabi, whose sovereign wealth funds manage nearly $2 trillion in assets, has already expanded investments across sectors, including finance and artificial intelligence. Moreover, the planned vehicle could strengthen the UAE’s position as a major global investor in the defence industry amid rising international military spending.
The UAE is also a significant importer of defence equipment, accounting for 2.7% of global arms imports between 2021 and 2025. Additionally, the country has built a modern defence portfolio that includes Patriot and THAAD missile defence systems, F-16 fighter aircraft, and Black Hawk helicopters.
The United States, France, and South Korea remain among the UAE’s main defence suppliers.
