In a significant move reflecting evolving regional alliances, UAE state-owned defense conglomerate Edge Group has acquired a 30% stake in Israeli military supplier Thirdeye Systems for $10 million. This marks a rare public investment by an Emirati company in Israel since the Gaza conflict began 15 months ago.
Beyond the stake, Edge Group plans to invest an additional $12 million in a new joint venture with Thirdeye Systems, where Edge holds the majority interest. The identity of a third party, owning 6% of the joint venture, remains undisclosed, while Thirdeye retains a 43% stake. This strategic partnership aims to fuel Thirdeye’s expansion into new markets, according to CEO Lior Segal.
Edge President Rodrigo Torres emphasized the deal’s mutual benefits, noting it will accelerate the development of innovative defense technologies. Thirdeye Systems, known for its drone detection technology and as a supplier to the Israeli military and NATO members, has seen its share price climb 51% since the conflict began, reaching 333.8 Israeli shekels ($92.29), as reported by LSEG data.
Since establishing diplomatic ties with Israel in 2020, the UAE has seen a surge of business collaborations, though public interactions cooled amid the conflict. Despite Abu Dhabi’s criticism of Israeli military operations in Gaza, relations between the two have remained stable. This investment underscores the pragmatic approach both nations are taking towards defense and technology collaboration amidst geopolitical complexities.
Edge Group, the UAE’s leading arms manufacturer, continues to expand its footprint in international markets. In 2021, Edge announced a partnership with Israel Aerospace Industries to jointly develop unmanned vessels, highlighting its commitment to advancing military technology.
This latest investment not only strengthens strategic ties between the UAE and Israel but also positions Edge and Thirdeye to leverage emerging defense opportunities on a global scale.