Protection startups pursue offers with Gulf states amid Iran battle

European protection tech startups are ramping up business discussions with Center East governments for the reason that Iran battle, firm execs advised CNBC. One other CEO stated curiosity from Gulf states was “skyrocketing” as they race to bolster measures to counter drone and missile assaults.

Iran has focused its neighbors since a joint U.S.-Israeli navy operation started on the finish of February, with greater than 3,000 drones and missiles having been fired on the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, based on knowledge compiled by suppose tank the Heart for Strategic and Worldwide Research.

European startups that develop protection expertise, particularly drone and missile interceptors, advised CNBC they have been more and more speaking with and receiving approaches from Gulf states to provide their militaries. Others are ramping up hiring within the area as they appear to satisfy the demand for his or her programs.

Earlier this month, the UK authorities convened a gathering of protection corporations to satisfy ambassadors and protection attaches from Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Iraq and Jordan.

The dialogue centered on “potential new defensive tools and expertise that British-based corporations might provide at speedy tempo to allies to counter Iranian drone and missile assaults,” the federal government stated in an announcement.

The assembly included Frankenburg Applied sciences, an Estonia-headquartered startup creating missiles to intercept drones, UK-based drone and missile interceptor firm Cambridge Aerospace and Ukrainian-UK startup Uforce, which is creating autonomous programs.

Frankenburg has seen business conversations with Gulf states velocity up for the reason that onset of the Iran battle, CEO Kusti Salm advised CNBC.

The startup is at present in discussions with quite a few governments within the Center East about procuring its tech, Salm stated, although declined to share which.

The potential order quantity from Gulf states is within the 1000’s of missiles, Salm advised CNBC, including that Frankenburg is working with these clients to satisfy demand in an “expediated supply schedule.”

Cambridge Aerospace, which declined to touch upon business discussions within the Center East or fundraising plans when approached by CNBC, introduced two missile and drone interceptor merchandise in September.

One is positioned by the corporate as a low-cost and scalable interceptor for cruise missiles and enormous drones, whereas one other is described as an “interceptor for increased velocity and worth targets.”

Earlier this month, the Monetary Instances reported that the corporate was in talks to boost new funding at greater than a $1 billion valuation.

UK-based startup Valarian, which builds digital infrastructure for delicate use instances together with these in protection, did not have protection contracts with Gulf states earlier than the Iran battle however has seen business discussions with them improve for the reason that battle started, CEO Max Buchan advised CNBC.

Uforce has seen curiosity from Gulf states in its protection tech “skyrocket” for the reason that starting of the Iran battle, CEO Oleg Rogynskyy advised CNBC. Uforce is creating a number of protection applied sciences, together with counter-uncrewed aerial programs (UAS), maritime and strike drones and battlefield software program.

“We’re having a ton of inbound curiosity,” he stated. “Gulf states are coming to us to determine the best way to do large-scale, unmanned operations.” That included intercept, de-mining, strike, future convoy and escort and patrol operations at sea, Rogynskyy added.

Uforce has been offering defence tech for Ukrainian operations within the Black Sea, he advised CNBC, including that the teachings from that battle “are straight relevant to what’s taking place in Iran, each from an operational, tactical and strategic perspective.”

“We’re trying on the very related mine and missile-based sea denial from the Iran aspect, to how Russia prevented Ukrainian grain from being exported, initially.”

Uforce, which raised $50 million at a valuation above $1 billion earlier this month, is now seeking to rent a crew completely primarily based within the Center East, due to the demand brought on by the Iran battle. The corporate at present has a Ukrainian delegation within the area, however goals to recruit 5 to 10 workers within the subsequent few weeks, Rogynskyy advised CNBC.

Frankenburg can be seeking to construct out a Center East-based crew. The startup did not have any workers within the area earlier than the battle, however is now seeking to rent there “considerably,” CEO Salm advised CNBC. Whereas the Center East has been a spotlight of Frankenburg for the reason that firm’s inception in 2024, hiring plans have been accelerated due to the Iran battle, he stated.

Protection tech startups in Europe have raised file sums in recent times as international geopolitical tensions have risen. The sector picked up $1.8 billion in 2025, based on deal-counting platform Dealroom, practically thrice the earlier highest yearly determine, and has already raised $854 million to this point in 2026.

The U.Ok. and Germany have emerged as key hubs of this wave of latest protection corporations, with France and Ukraine additionally creating more and more well-funded startups.

The governments of the UAE, Saudi Arabia, Qatar and Kuwait have been approached for remark. The Bahraini authorities declined to remark.

– CNBC’s Emma Graham additionally contributed to the report.