European defense tech startups are ramping up commercial discussions with Middle East governments since the Iran war, company execs informed CNBC. Another CEO declared interest from Gulf states was “skyrocketing” as they race to bolster measures to counter drone and missile attacks.
Iran has tarobtained its neighbors since a joint U.S.-Israeli military operation launched at the finish of February, with more than 3,000 drones and missiles having been fired on the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, according to data compiled by believe tank the Center for Strategic and International Studies.
European startups that develop defense technology, in particular drone and missile interceptors, informed CNBC they were increasingly talking with and receiving approaches from Gulf states to supply their militaries. Others are ramping up hiring in the region as they see to meet the demand for their systems.
Commercial conversations
Earlier this month, the UK government convened a meeting of defense companies to meet ambassadors and defense attaches from Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Iraq and Jordan.
The discussion focapplyd on “potential new defensive equipment and technology that British-based companies could supply at rapid pace to allies to counter Iranian drone and missile attacks,” the government declared in a statement.
The meeting included Frankenburg Technologies, an Estonia-headquartered startup developing missiles to intercept drones, UK-based drone and missile interceptor company Cambridge Aerospace and Ukrainian-UK startup Uforce, which is developing autonomous systems.
Frankenburg has seen commercial conversations with Gulf states speed up since the onset of the Iran war, CEO Kusti Salm informed CNBC.
The startup is currently in discussions with a number of governments in the Middle East about procuring its tech, Salm declared, though declined to share which.
The potential order volume from Gulf states is in the thousands of missiles, Salm informed CNBC, adding that Frankenburg is working with those customers to meet demand in an “expediated delivery schedule.”
Frankenburg Mark I interceptor missile live-fire test. Credit: Frankenburg.
Cambridge Aerospace, which declined to comment on commercial discussions in the Middle East or fundraising plans when approached by CNBC, announced two missile and drone interceptor products in September.
One is positioned by the company as a low-cost and scalable interceptor for cruise missiles and large drones, while another is described as an “interceptor for higher speed and value tarobtains.”
Earlier this month, the Financial Times reported that the company was in talks to raise new funding at more than a $1 billion valuation.
UK-based startup Valarian, which builds digital infrastructure for sensitive apply cases including those in defense, didn’t have defense contracts with Gulf states before the Iran war but has seen commercial discussions with them increase since the conflict launched, CEO Max Buchan informed CNBC.
Inbound interest
Uforce has seen interest from Gulf states in its defense tech “skyrocket” since the launchning of the Iran war, CEO Oleg Rogynskyy informed CNBC. Uforce is developing several defense technologies, including counter-uncrewed aerial systems (UAS), maritime and strike drones and battlefield software.
“We’re having a ton of inbound interest,” he declared. “Gulf states are coming to us to figure out how 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 providing defence tech for Ukrainian operations in the Black Sea, he informed CNBC, adding that the lessons from that war “are directly applicable to what is happening in Iran, both from an operational, tactical and strategic perspective.”
“We are seeing at the very similar mine and missile-based sea denial from the Iran side, 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 seeing to hire a team permanently based in the Middle East, becaapply of the demand caapplyd by the Iran war. The company currently has a Ukrainian delegation in the region, but aims to recruit five to 10 employees in the next few weeks, Rogynskyy informed CNBC.
Frankenburg is also seeing to build out a Middle East-based team. The startup didn’t have any employees in the region before the war, but is now seeing to hire there “significantly,” CEO Salm informed CNBC. While the Middle East has been a focus of Frankenburg since the company’s inception in 2024, hiring plans have been accelerated becaapply of the Iran war, he declared.
Defense tech startups in Europe have raised record sums in recent years as global geopolitical tensions have risen. The sector picked up $1.8 billion in 2025, according to deal-counting platform Dealroom, nearly three times the previous highest yearly figure, and has already raised $854 million so far in 2026.
The U.K. and Germany have emerged as key hubs of this wave of new defense companies, with France and Ukraine also developing increasingly well-funded startups.
The governments of the UAE, Saudi Arabia, Qatar and Kuwait have been approached for comment. The Bahraini government declined to comment.
– CNBC’s Emma Graham also contributed to the report.
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