Edge Group invests in Israeli defence supplier

Wam

• UAE arms maker buys 30% stake
• Anti-drone technology
• JV formed with third party

UAE state-owned defence conglomerate Edge Group has bought a 30 percent stake in Israeli military supplier Thirdeye Systems for $10 million.

The deal is a rare public investment by an Emirati company in Israel since the Gaza war began 15 months ago.

Edge will also put an additional $12 million into a new, majority Edge-owned joint venture with Thirdeye Systems, the Israeli company said.

A third party, whose identity was not disclosed, will hold 6 percent, with Thirdeye Systems owning the remaining 43 percent of the JV.

Edge’s investment will help Thirdeye Systems expand into new markets, Chief Executive Lior Segal said in a statement.

Edge President Rodrigo Torres said the deal was of mutual benefit and would accelerate the development of new systems.

The UAE established diplomatic ties with Israel in 2020, setting off a flurry of business activity between the two states that later publicly cooled following the onset of the conflict.

Abu Dhabi has criticised the conduct of Israel’s military operations in Gaza, but the countries have maintained relations.

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Thirdeye Systems develops technology that can detect drones and is a supplier to the Israeli military and some Nato members.

Its share price has risen sharply over the past 15 months as it won new contracts to supply the Israeli military. On Tuesday, its share price was up 51 percent since the war began, at 333.8 Israeli shekels ($92.29), according to LSEG data and Reuters calculations.

Edge is the UAE’s largest arms maker. It is owned by the government and in 2021 announced it would jointly develop unmanned vessels, capable of missions including submarine detection, with state-owned Israel Aerospace Industries.