Israel's defence industry is out in force at the Middle East's biggest defence exhibition in Abu Dhabi this week.
But some of its company executives admitted that sentiment towards Israel has changed following the devastating 15-month war on Gaza and the invasion of Lebanon.
Israel's Ministry of Defence and 29 defence contractors are attending the International Defence Exhibition (Idex), including Israel Aerospace Industries (IAI), Rafael Advanced Defence Systems and Elbit Systems. Companies at the Israeli national pavilion – nestled between US defence major Lockheed Martin and South Korea's defence conglomerate Poongsan Corporation – returned to the expo this year amid the backdrop of a fragile ceasefire in the Israel-Gaza war.
Israeli exhibitors say it is a delicate time for deal-making, as they are navigating a different landscape from the last exhibition in February 2023, before the conflict that began on October 7, 2023.
“We actually launched a drone in [Idex] 2023, it was definitely a bit of a different feeling there,” said Bentzion Levinson, founder and chief executive of Heven Drones, which is based in the US and Israel. “I share the feeling that [the] world is different than two years ago, but I also share the feeling that we are all here to protect our countries.”
Mr Levinson said that while there remains scope for seeking business with Middle East customers, there is caution about speaking publicly about potential deals.
“What we’ve heard from all our customers is that nothing has changed, it’s just a bit more sensitive,” he said. “It goes back to what things are spoken about out loud, PR aspects of talking about things. So it’s not poor business … the optics [are] a bit more sensitive.”
The show's organisers said: “Idex is a global event. It's open for all to come and showcase their product here in Abu Dhabi. The Israeli pavilion is a growing pavilion with us. There are around 40 companies on display here in Idex 2025.” The 40 companies at the event, which runs until February 21 at Adnec, include co-exhibitors and partners of the parent companies.
The UAE and Bahrain are signatories to the September 2020 Abraham Accords – brokered by the US – to establish formal ties with Israel. Morocco and Sudan signed later on. The Israel-UAE pact announced before the Gaza war included co-operation for investments in cyber security, FinTech, energy and agricultural technology.
The Israeli government has been widely accused of atrocities and mass civilian casualties in Gaza. But potential customers want battle-tested systems, Mr Levinson claimed. “Putting the optics aside, from a pure business perspective – what I've heard is that there's a lot of interest in products that have proved themselves.”
Heven is displaying its new hydrogen-powered unmanned aerial system, the H2D200 drone dubbed Raider, at Idex this year. “We believe Abu Dhabi is at the centre of global commerce and what's unique about the show is that you can see everyone from the East and the West,” Mr Levinson said.
The company has “multiple customers” in the region and since the Abraham Accords has seen collaboration “move much, much faster”.
The push for defence exports comes as Israel's wars in Lebanon and Gaza take a toll on its economic growth, along with leaving Gaza and Lebanon's economies in ruins.
Israel’s economy grew 1 per cent in 2024, down from 1.8 per cent in 2023, due to a slump in investments and exports, according to initial estimates by Israel’s Central Bureau of Statistics on Monday. It is the slowest pace of growth in more than two decades, excluding the Covid-19 pandemic.
Economic activity in the fourth quarter of 2024 expanded 2.5 per cent year-on-year, which missed economists’ projections for 5.3 per cent growth, according to Bloomberg.
Israeli company Smart Shooter, a maker of fire control systems for small arms, is showcasing four products at Idex this year.
“We believe the UAE is looking for innovation and the latest technology,” Abraham Mazor, vice president of business development and marketing at Smart Shooter, said. The priority of the company, which has customers in the Middle East and Europe, is to attract customers from the Emirates, Mr Mazor said.
Asked if Israeli companies are being perceived differently since the previous show, he said: “We have a good product, a valid product, in the last Idex and this Idex. We never talk about politics, we are just happy to help our partners to deploy the best systems.”
Ron Pollak, vice president of sales and marketing at Israeli company Emtan, said the Abraham Accords are a “very strong peace alignment … we feel very safe and welcome here in the UAE”.
“Idex is an international exhibition, it's not just about the Middle East. We have customers from South America, Europe and of course the Middle East that come visit us in this exhibition. It's basically a global showcase.”
Emtan aims to present its latest technology to the world through Idex, expand its international customer base and it is open to supply to “any government that has a relationship with Israel”.
“Governments usually buy what they need, and if they put politics aside, they will buy the best of them,” Mr Pollak said.
Etman, which has 52 customers around the world, said the Middle East is not one of its biggest markets and so far it has seen little impact on its business in the region from the war.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
RESULTS
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
Winner RB Money To Burn, Fabrice Veron (jockey), Eric Lemartinel (trainer).
7.05pm Handicap (TB) $175,000 (Turf) 1,200m
Winner Ekhtiyaar, Jim Crowley, Doug Watson.
7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m
Winner Commanding, Richard Mullen, Satish Seemar.
8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m
Winner Benbatl, Christophe Soumillon, Saeed bin Suroor.
8.50pm Handicap (TB) $135,000 (T) 1,600m
Winner Zakouski, William Buick, Charlie Appleby.
9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m
Winner Kimbear, Pat Dobbs, Doug Watson.
10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m
Winner Platinum Star, Christophe Soumillon, Saeed bin Suroor.
10.35pm Handicap (TB) $135,000 (T) 1,600m
Winner Key Victory, James Doyle, Charlie Appleby.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
