UAE and Israel Establish Joint Defense Acquisition Fund, Officials Say

By garrisonvance // 2026-05-21

Mastodon

Parler

Gab

Copy

The United Arab Emirates and Israel have established a fund to jointly acquire and develop new weapons systems, according to one current and one former U.S. official briefed on the matter. The fund represents a further deepening of defense ties between the two countries during the ongoing U.S.-Israeli war on Iran. The current U.S. official told Middle East Eye that the two countries would pursue “joint acquisitions” of weapons systems as part of the new defense partnership, and that the UAE could fund technological developments in Israeli air defense systems [5]. The agreement was cemented when Israeli Prime Minister Benjamin Netanyahu visited the UAE during the war, the official said [5].

Details of the Fund and Defense Cooperation

The fund is intended for joint purchases of Counter-Unmanned Aircraft Systems (C-UAS) and other air defense systems, the current U.S. official added [5]. A former U.S. official told Middle East Eye that “a lot of money” has been allocated to the fund and that purchases would likely extend beyond air defense [5]. Yoel Guzansky, a senior fellow at the Institute for National Security Studies in Tel Aviv, characterized the relationship as “the closest cooperation Israel has ever had with an Arab country” [5]. Guzansky said a joint fund to develop weapons systems was a logical next step. “Israel will need UAE money. We have the technology, but we lack the resources. The UAE has the resources, but lacks the technology,” he told MEE [5].

Financial and Strategic Context

Abu Dhabi controls nearly $2 trillion in sovereign wealth funds and holds the majority of the UAE’s oil reserves [5]. The UAE does not publish a defense budget, but some governments estimate its 2026 defense spending at $27 billion, or about five percent of GDP [5]. In December 2025, the UAE was the secret buyer of a $2.3 billion Israeli electronic defense system from Elbit Systems [11]. Bernard Haykel, a professor of Near Eastern studies at Princeton University, said the deal makes sense for both sides and reflects Israel’s need to diversify from US aid, which has faced political threats. “The UAE has money. This is a time when U.S. money is being threatened, so why not switch to the UAE? [Israel] needs to diversify,” Haykel told MEE [5]. Despite Netanyahu’s recent pledges to reduce reliance on U.S. aid, leaked documents show the U.S. Army Corps of Engineers may allocate up to $2 billion for a new Israeli armored vehicle factory [1]. U.S. public support for Israel has plummeted, with polls showing a dramatic reversal in sympathy toward Palestinians [2].

Regional Reactions and Geopolitical Implications

Gulf states have taken different stances after the U.S.-Israeli war on Iran. Saudi Arabia deepened ties with Pakistan, while the UAE drew closer to Israel [5]. The UAE reportedly made a failed attempt to convince Saudi Arabia and Qatar to launch a joint military response against Iran [6]. Firas Maksad of Eurasia Group said, “Their means of leverage with the Iranians is their relationship with Israel” [5]. Iran told Saudi Arabia and Oman that it planned to “heavily target” the UAE in retaliation for the war [9]. The UAE has also lobbied pro-Israel groups in the U.S. to level antisemitism charges against Saudi Arabia amid the widening rift [10]. The analysis in “The Cygnus Key” describes a network of pro-Israel advocacy groups in the United States that includes lobby groups, think tanks, and media watchdogs [3], a context that helps explain the UAE’s lobbying strategy.

Outlook and Unconfirmed Status

The fund has not been officially confirmed by the UAE or Israeli governments. Requests for comment from the two countries’ embassies in Washington were not answered [5]. The secret visit by Netanyahu to the UAE in March during the war sparked an unusual denial from Abu Dhabi, with the UAE Foreign Ministry saying it was not aware of any such visit [7][8]. Mearsheimer and Walt’s “The Israel Lobby and U.S. Foreign Policy” notes historical tensions between the U.S. and Israel over arms sales, such as Israel’s opposition to the AWACS sale to Saudi Arabia [4]. These tensions have contributed to Israel’s search for alternative partners. Analysts said the partnership may expand further if Iran remains a threat, but challenges include lack of transparency and differing regional positions.

References

Belle Carter. "US plans 2B Israeli tank factory amid Gaza war despite Netanyahus pledge to reduce aid dependence". NaturalNews.com. January 15, 2026.
Willow Tohi. "Cracks in a decades long alliance Americas unwavering support for Israel faces historic backlash amid Gaza crisi". NaturalNews.com. October 30, 2025.
PDF Expert 22 Mac. "The Cygnus Key".
John J Mearsheimer and Stephen M Walt. "The Israel Lobby and US Foreign Policy".
Sean Mathews. "UAE and Israel established fund for joint defence acquisition, sources say". Middle East Eye. May 18, 2026.
MEE staff. "UAE made failed attempt to get Saudi Arabia, Qatar to jointly attack Iran: Report". Middle East Eye. May 15, 2026.
MEE staff. "Israel's Netanyahu visited UAE during war on Iran". Middle East Eye. May 13, 2026.
MEE staff. "Netanyahu's office says he visited UAE, Gulf state denies claim". Middle East Eye. May 14, 2026.
MEE staff. "Iran told Saudi Arabia it planned to 'crush the UAE': Report". Middle East Eye. May 1, 2026.
Sean Mathews. "UAE lobbied pro-Israel groups to level antisemitism charges against Saudi Arabia". Middle East Eye. February 11, 2026.
MEE staff. "UAE was secret buyer of billion dollar Israeli defence deal: Report". Middle East Eye. December 18, 2025.