The United Arab Emirates and Israel have formed a joint defense fund aimed at enhancing their military capabilities and jointly acquiring advanced defense equipment and technology. The initiative, confirmed by Middle East Eye citing current and former U.S. officials, was finalized during Israeli Prime Minister Benjamin Netanyahu’s visit to the UAE amid the ongoing Iran war. The fund will support joint arms purchases and may finance upgrades to Israel’s air defense systems, with both countries focusing on drone interception and air defense technologies.

According to sources, the fund involves significant financial commitments and extends beyond air defense systems. Analysts note that Israel brings technological expertise while the UAE provides financial resources. The move comes as U.S. financial support for Israel faces growing domestic scrutiny, prompting Israel to diversify its funding sources. Experts describe the partnership as the closest cooperation ever between Israel and an Arab nation.

The UAE’s independent approach contrasts with Saudi Arabia’s regional alliances. Observers suggest that as tensions with Iran deepen, Abu Dhabi sees its relationship with Israel as a strategic counterbalance in regional security.