UAE Weighs Defense Fund With Eye on Ukrainian Drone Makers

The discussions come as Ukraine signals it is ready to begin exporting domestically produced weapons for the first time since the start of Russia’s full-scale invasion. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied The United Arab Emirates flag flutters against the backdrop of the Abu Dhabi Skyline following a reported Iranian strike on March 1, 2026. Iran's retaliatory missile and drone campaign in the Gulf has killed three people and wounded 58 in the United Arab Emirates since it began, Emirati authorities said on March 1, the day after the US and Israel launched a nationwaide attack on Iran killing its supreme leader. (Photo by Ryan Lim / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google The UAE is considering launching a new defense-focused investment fund that could target Ukrainian drone manufacturers, as Kyiv moves to open its wartime defense industry to global markets. According to Bloomberg , senior Emirati officials – including Crown Prince Sheikh Khaled bin Mohamed Al Nahyan – are discussing a vehicle that would invest in defense companies worldwide. Follow our coverage of the war on the @Kyivpost_official . Potential targets include firms in Europe, the United States, Turkey, and Ukraine, particularly in the fast-growing drone sector. The discussions come as Ukraine signals it is ready to begin exporting domestically produced weapons for the first time since the start of Russia’s full-scale invasion. On April 28, President Volodymyr Zelensky said Kyiv had finalized all state-level decisions required to launch arms exports. “The export of Ukrainian weapons will become a reality,” Zelensky said following a government meeting, according to Ukrinform. Zelensky said Ukraine has developed a new framework for cooperation with partner countries, known as “Drone Deals,” which will cover the production and supply of drones, missiles, ammunition, and other weapons, as well as military equipment, software, and integration with partner defense systems. He said the system would operate on a government-to-government basis, with Ukraine’s Armed Forces retaining priority access to weapons. Other Topics of Interest Russia Breaks Proposed Truce Overnight With Drones, Missiles, Guided Bombs Strikes Russia launched drones and guided bomb strikes across Ukraine just hours after a proposed ceasefire began, with explosions reported in multiple regions and civilians wounded. The government is also simplifying export procedures while maintaining controls, including restrictions on countries with ties to Russia. Zelensky said Ukraine currently has surplus production capacity of up to 50% in some categories of weapons, following increased state investment and cooperation with international partners. The proposed Abu Dhabi fund would be established outside the emirate’s existing sovereign wealth funds and defense companies, Bloomberg reported. The UAE, which controls about $2 trillion in assets, has previously created specialized investment platforms, including MGX for artificial intelligence and Judan, a financial holding company with $237 billion in assets. The United Arab Emirates is already a major arms importer. According to the Stockholm International Peace Research Institute , it accounted for 2.7% of global arms imports between 2021 and 2025. Ukraine has been expanding defense cooperation with countries in the Persian Gulf, as interest grows in its battlefield-tested technologies, particularly drones used against Russian forces. If established, the Abu Dhabi fund could provide a new source of investment for Ukraine’s defense sector as it prepares to enter the global arms market. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.