Defense startups pursue deals with Gulf states amid Iran war
European defense technology startups have stepped up trade talks with Middle Eastern governments since the Iran war, company executives told CNBC. Another CEO said interest from Gulf states was “skyrocketing” as they seek to step up safeguards against drone and missile attacks.
According to data compiled by the think tank Center for Strategic and International Studies, Iran has been targeting its neighbors since the start of a joint US-Israeli military operation in late February; More than 3,000 drones and missiles were fired at the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait.
European startups developing defense technology, particularly drone and missile interceptors, told CNBC they are increasingly talking to and receiving approaches from them. Gulf countries will supply their own armies. Others are increasing hiring in the region to meet demand for their systems.
commercial negotiations
Earlier this month, the UK government held a meeting of defense companies to meet with the ambassadors and defense attachés of Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Iraq and Jordan.
The government said in a statement that the discussion centered on “potential new defense equipment and technology that British-based companies could quickly supply to allies against Iranian drone and missile attacks.”
The meeting was attended by Estonia-based startup Frankenburg Technologies, which develops missiles to intercept drones, UK-based drone and missile interceptor company Cambridge Aerospace, and Ukraine-England-based startup Uforce, which develops autonomous systems.
Frankenburg has seen trade talks with Gulf states accelerate since the start of the Iran war, CEO Kusti Salm told CNBC.
Salm said the startup is currently in talks with some governments in the Middle East about supplying its technology, but he declined to share which one.
Speaking to CNBC, Salm said the potential order volume from Gulf countries is thousands of missiles, adding that Frankenburg is working with these customers to meet demand with an “expedited delivery schedule.”
Frankenburg Mark I interceptor missile live fire test. Credit: Frankenburg.
Cambridge Aerospace, which has declined to comment on trade discussions in the Middle East or fundraising plans discussed by CNBC, announced two missile and drone interceptor products in September.
One of them is positioned by the company as a low-cost and scalable interceptor for cruise missiles and large drones, while the other is described as “an interceptor aimed at higher speed and high-value targets.”
Financial Times earlier this month reported It was stated that the company is in talks to raise new funds with a valuation of over $ 1 billion.
Valarian, a UK-based startup that creates digital infrastructure for sensitive use cases, including those in defense, did not have defense contracts with Gulf countries before the Iran war, but commercial talks with them have increased since the start of the conflict, CEO Max Buchan told CNBC.
Incoming interest
Uforce has seen rapidly increasing interest in defense technology from Gulf countries since the beginning of the Iran war, CEO Oleg Rogynskyy told CNBC. Uforce develops a variety of defense technologies, including uncrewed aerial systems (UAS), maritime and attack drones, and battlefield software.
“We are seeing a lot of interest,” he said. “Gulf countries are coming to us to figure out how to do large-scale unmanned operations.” Rogynskyy added that this includes interdiction, demining, offensive, future convoy and maritime escort and patrol operations.
Uforce provides defensive technology for Ukraine’s operations in the Black Sea, he told CNBC, adding that lessons learned from that war “are directly applicable to what’s going on in Iran, both operationally, tactically and strategically.”
“We are monitoring the Iranian side’s mine- and missile-based naval denial, very similar to how Russia initially blocked exports of Ukrainian grain.”
Uforce, which raised $50 million at a valuation of over $1 billion earlier this month, is now looking to hire a team permanently based in the Middle East due to demand caused by the Iran war. The company currently has a Ukrainian delegation in the region but aims to hire 5 to 10 employees in the next few weeks, Rogynskyy told CNBC.
Frankenburg also plans to establish a team based in the Middle East. The startup didn’t have any employees in the region before the war, but is now looking to hire there “significantly,” CEO Salm told CNBC. While the Middle East has been Frankenburg’s focus since the company’s founding in 2024, hiring plans have been accelerated due to the Iran war, he said.
Defense technology startups in Europe have raised record sums in recent years as global geopolitical tensions escalate. According to deal counting platform Dealroom, the industry raised $1.8 billion in 2025; That figure was nearly three times the previous highest annual figure, raising $854 million so far in 2026.
There is England and Germany France and Ukraine have also emerged as important hubs of this new wave of defense companies, with France and Ukraine also developing increasingly well-financed ventures.
The governments of the UAE, Saudi Arabia, Qatar and Kuwait were approached for comment. The Bahraini government declined to comment.
– CNBC’s Emma Graham also contributed to the report.
