On 18 May, Israel and UAE established a joint weapons fund to develop air defense systems and Counter-Unmanned Aircraft Systems (C-UAS) during the Iran war that also affected the Gulf due to its defense cooperation with Israel and US, as two US officials broke the news to Middle East Eye.
The partnership reflects major shifts in security ties between United Arab Emirates and Israel as the war with Iran reshaped regional priorities. According to Middle East Eye, the joint fund will obtain and develop advanced weapons systems, particularly in air defense and drone interception technologies.
One current US official said the two countries are pursuing “joint acquisitions” under a new defense framework, with the UAE also expected to finance Israeli defense technology development.
The arrangement gained urgency after Iran launched thousands of missiles and drones across the Gulf, with the UAE suffering nearly 3,000 attacks.
The United Arab Emirates and Israel cooperation became more visible during the war when the Jewish state deployed Iron Dome systems and personnel to the UAE, marking the first known operational use of Israeli-manned defense systems on Arab soil in an active war.
War with Iran Pushes UAE And Israel Closer
The UAE was among the hardest hit countries in the Guld region, which gave the UAE a push to seek protection and cooperate with the region’s outcast, Israel.
The UAE on Israel security cooperation became clear when Israel deployed Iron Dome batteries and personnel to the UAE during the war. Prime Minister Benjamin Netanyahu was said to have secretly approved the transfer after speaking with UAE President Sheikh Mohammed bin Zayed Al Nahyan.
It was the first known operational use of Israeli-manned defense systems on Arab soil during an active regional tension followed by present war.
“The war brought an unprecedented level of closeness, driven largely by a shared sense of fate – both countries were attacked and the enemy is common,” an Israeli official told CNN.
Israel and the UAE normalized relations under the Abraham Accords peace agreement signed in 2020. Israel “did not even envision this closeness when we signed the Abraham Accords,” an Israeli source told CNN.
The UAE on Israel military cooperation appears to be expanding beyond emergency defense support. According to Middle East Eye, the two countries are now discussing broader weapons development projects tied to air defense systems and drone interception technologies.
Senior fellow at the Institute for National Security Studies Yoel Guzansky said the Israel and UAE relations relationship has reached a historic stage.
“This is the closest cooperation Israel has ever had with an Arab country,” stated Guzansky.
Guzansky also explained that the Israel and UAE partnership reflects practical needs from both sides.
“Israel will need UAE money. We have the technology, but we lack the resources. The UAE has the resources, but lacks the technology,” said Guzansky highlighting the United Arab Emirates Israel relations.
Investment Deepening Israel and UAE Alliance
The growing Israel and UAE relations is no longer limited to military connections and interests.
Technology investment and economic cooperation are also becoming central parts of the UAE Israel relationship.
Startup Nation Central’s 2025 report showed that Gulf investment in Israeli technology is becoming more active, even if much of it remains difficult to publicly track. While official figures appear relatively small, many Gulf investments reportedly move through foreign venture capital funds and offshore family offices.
Vice president for business development and partnerships at Startup Nation Central Yariv Becher said the publicly available numbers only show part of the picture.
“What I want to say is there is much more investment coming from the Gulf than the numbers that you see here,” Becher said.
The UAE has become the clearest Gulf participant in Israeli technology because diplomatic ties allow direct Israel and UAE investments and open business cooperation. Saudi investors and others in the Gulf often rely on indirect channels instead.
Technology sectors tied to cybersecurity, drones, AI, water systems, and energy have become especially important as Gulf states face growing regional instability and infrastructure threats.
The Israel GCC countries relationship also reflects wider political shifts unfolding across the Gulf. During the Iran war, the UAE became increasingly frustrated with regional allies that it believed failed to support Abu Dhabi during the attacks.
Presidential adviser Anwar Gargash publicly criticized Gulf and Arab states for what he described as weak regional backing during the war.
At the same time, UAE Israel relationship has bonded the two countries, the US, France, and the UK, countries Abu Dhabi viewed as more dependable security partners during the war.
Professor of Near Eastern Studies at Princeton University Bernard Haykel said Israel may also view the UAE as a growing financial alternative as political support inside the United States changes.
“This is a time when US money is being threatened, so why not switch to the UAE? [Israel] needs to diversify,” Haykel said.
Deeper Israel and UAE ties are restructuring the political and economic landscape of the Middle East. Regional tensions maintain their rise, and both countries appear to believe that security cooperation, technology investment, and military coordination now offer them stronger long-term value than traditional regional alliances alone.
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