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Ukrainian factories in the Persian Gulf: how drone production in the region could bring missiles, aircraft and investment

IISS analyst Albert Vidal Ribes explained to LIGA.net why the Persian Gulf is considering Ukrainian UAV interceptors as a bargaining chip — and what risks and benefits this entails for Ukraine's security and economy.

Tetiana Suchkova-Ladik

By Tetiana Suchkova-Ladik

March 28, 2026 · 2 min read

Ukrainian factories in the Persian Gulf: how drone production in the region could bring missiles, aircraft and investment
Дубай (Ілюстративне фото: ALI HAIDER / EPA)

Why this deserves attention

While attention is focused on the fronts and diplomatic declarations, interest is growing in practical solutions that can simultaneously strengthen Ukraine's defense capability and provide vitally needed ammunition and equipment. Locating Ukrainian arms production in the countries of the Persian Gulf is not a fantasy but an option that analysts and market players are already discussing in public interviews and examples of cooperation.

What’s on the negotiating table

According to Albert Vidal Ribes of IISS, who spoke with LIGA.net, Kyiv can offer partners in the region UAV interceptors and expertise in countering Iranian "Shahed" drones — resources that the region urgently needs. In return — investments in the Ukrainian defense industry, as well as missiles, aircraft and political influence that would speed up the restoration of the Armed Forces’ capabilities.

"There is a clear business case between Kyiv and the states of the Persian Gulf"

— Albert Vidal Ribes, defense analyst, IISS

Cooperation mechanisms can vary: from licensed production and joint ventures to the full relocation of specific production lines to the region under the control of Ukrainian companies and with intellectual property preserved.

Evidence, interests and examples

There is already precedent. At the end of February the Ukrainian company Ukrspecsystems opened a drone manufacturing plant in the United Kingdom — an example of how Ukrainian technologies can be scaled abroad. Against this backdrop regional giants, such as EDGE in the UAE, have been actively working on their own UAV interceptors (Vortex-E, Shadow-3, Allag-E, etc.), indicating demand and technical interest even before recent regional escalations.

At the same time there are serious risks. Iran claimed to have destroyed a warehouse with Ukrainian anti-drone weaponry in the UAE, but this information was refuted by Foreign Ministry spokesperson Tykhyi. Also, expert Melnyk emphasized in a LIGA.net piece that the state restricts direct sales by manufacturers in order to preserve negotiating leverage.

"Ukraine prohibits drone manufacturers from selling products directly to the Middle East, because the country seeks to achieve a comprehensive solution exchanging technology for weapons and investment"

— expert Melnyk, LIGA.net

In addition, international relations analyst Kusa notes that most Middle Eastern states will maintain a neutral status in the Russia-Ukraine war — but for Kyiv neutrality can effectively become useful if it is transformed into economic and defense agreements.

What to expect next

Possible deployment of production in the Persian Gulf is more than business: it is a strategic move that combines technological export, diversification of supply chains and political lobbying. For it to work in Ukraine's favor, clear state guarantees of control, an agreed licensing scheme and mechanisms to protect intellectual property are needed.

The question remains practical: will declarations be turned into signed contracts that give the Armed Forces concrete tools while simultaneously protecting national security interests? The answer to that will determine how much this initiative strengthens our defense and economic resilience.

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