This is how European defense tech startups are seizing opportunities created by the Iran war

In the wake of escalating conflicts in the Middle East, particularly following the Iran war, European defense technology startups are intensifying their engagement with governments in the region. Company executives report a significant surge in interest from Gulf states, as these nations seek to enhance their defenses against drone and missile threats. Since late February, a joint U.S.-Israeli military operation has prompted Iran to launch over 3,000 drone and missile attacks against its neighbors, including the United Arab Emirates, Saudi Arabia, Bahrain, and Kuwait, according to the Center for Strategic and International Studies. In response, European firms specializing in defense technologies, especially in drone and missile interception, are finding themselves at the center of increased demand. Earlier this month, the UK government facilitated a meeting bringing together defense companies and representatives from Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Iraq, and Jordan. This gathering focused on the urgent need for new defensive technologies that British firms could supply rapidly to counter Iranian threats, as stated by government officials. Among the companies involved was Frankenburg Technologies, an Estonian startup dedicated to missile interception. CEO Kusti Salm noted that the onset of the Iran conflict has accelerated discussions with Gulf states regarding their procurement of defense technologies. Although he did not disclose specific partnerships, he mentioned that potential orders could involve thousands of missiles. Cambridge Aerospace, a UK-based company, also announced new interceptor products in September but remained tight-lipped about ongoing commercial discussions in the Middle East. Meanwhile, Valarian, which specializes in digital infrastructure for sensitive applications, has experienced a sharp increase in inquiries from Gulf states since the conflict began. Uforce, a startup developing various defense technologies, including counter-uncrewed aerial systems and maritime drones, reported a dramatic rise in interest from Gulf nations. CEO Oleg Rogynskyy highlighted the shift in focus toward large-scale unmanned operations, driven by the lessons learned from the Ukraine conflict, which he believes are pertinent to current operations in Iran. To meet the rising demand, Uforce is looking to establish a permanent presence in the Middle East, while Frankenburg is also expanding its hiring plans significantly. Both startups are among those benefiting from a record influx of investment into the European defense sector, which reached $1.8 billion in 2025, nearly tripling previous records. With geopolitical tensions rising, countries like the UAE, Saudi Arabia, Qatar, and Kuwait are becoming crucial partners for European defense startups, as they strive to bolster their military capabilities in uncertain times.