UAE’s Edge Group acquires 30% stake in Israeli drone tech firm
The acquisition of a 30% stake in ThirdEye is the latest example of cooperation between Israel and the UAE.
The Emirati state-owned defense and technology conglomerate EDGE Group has acquired a stake in an Israeli defense firm, the latter announced on Tuesday, underscoring growing defense ties between Israel and the United Arab Emirates despite Abu Dhabi's recent public rebukes of Israeli military actions.
ThirdEye Systems Ltd. said EDGE Group is investing $10 million in exchange for a 30% stake in the company. The two companies will establish a joint venture with an additional $12 million investment to focus on “developing and marketing cutting-edge electro-optical object recognition systems,” ThirdEye said in a statement.
EDGE Group, which includes over 35 companies and ranks as one of the top three global suppliers of precision-guided munitions, did not immediately respond to Al-Monitor’s request for comment.
ThirdEye is a research and development company that focuses on object recognition technology. Its products include equipment for drones and are used by the Israeli military, according to the company's website. The firm is publicly traded on the Tel Aviv Stock Exchange.
Why it matters: Economic ties between Israel and the UAE have remained strong despite public Emirati criticism of the Israeli government’s actions. Al-Monitor’s Gulf correspondent, Jennifer Gnana, reported last September that annual Israel-UAE trade was on track to reach its highest level ever of $3.3 billion. Trade amounted to $2.95 billion in 2023.
The UAE has criticized a number of Israel’s decisions in Gaza and Lebanon in the past year. Last September, Abu Dhabi expressed “deep concern” over Israel’s strikes against Hezbollah in southern Lebanon. In May, the Emirates said it “strongly condemns” Israel’s seizure of the Rafah border crossing between Gaza and Egypt.
Trade between the two countries is largely focused on diamonds. Precious stones were the largest UAE export to Israel and Israeli export to the UAE in 2022 and 2023, according to trade data.
In terms of defense cooperation, Reuters reported in late 2022 that Israel had agreed to sell the SPYDER air defense system to the UAE. The system is made by the Israeli defense giant Rafael.
Israel and the UAE established full relations in 2020 via the US-brokered Abraham Accords.
Know more: EDGE Group launched a new company last September, FADA, in an effort to strengthen the UAE’s defense-related space capabilities, Francesco Schiavi wrote for Al-Monitor.
The UAE has significant space ambitions and in 2020 became the first country in the Arab world to send a probe to Mars.
