Ukraine's defence companies' stands at Idex in Abu Dhabi are displaying the country's 'combat-tested' products. Antonie Robertson / The National
Ukraine's defence companies' stands at Idex in Abu Dhabi are displaying the country's 'combat-tested' products. Antonie Robertson / The National
Ukraine's defence companies' stands at Idex in Abu Dhabi are displaying the country's 'combat-tested' products. Antonie Robertson / The National
Ukraine's defence companies' stands at Idex in Abu Dhabi are displaying the country's 'combat-tested' products. Antonie Robertson / The National

Idex 2025: Ukraine defence firms woo foreign buyers in hope of deals when export ban ends


Deena Kamel
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Ukrainian defence companies are wooing potential foreign buyers with "combat-tested" weapons at the Middle East's biggest defence exhibition in Abu Dhabi, in hope of capturing new markets once a government-imposed ban on arms exports is lifted.

Ukraine's defence industry stands, housing both state-owned and private companies at the International Defence Exhibition (Idex), were packed with visitors keen to know more about products on display, from drones to ammunitions and military technology and weapons systems that exhibitors say have proven their capabilities on the battlefield during the three-year war with Russia.

"It's reliable, it's battle-proven, it's a reasonable price and one of our advantages is that we can produce them in big volumes,"Sergii Goncharov, chief executive of National Association of Ukrainian Defence Industries (NAUDI) told The National on the sidelines of Idex. "We have a growing army ... and we always need to increase our capacity."

Visitors inspect the pavilion of Ukraine at Idex 2025 in Abu Dhabi. EPA
Visitors inspect the pavilion of Ukraine at Idex 2025 in Abu Dhabi. EPA

The Ukrainian government has imposed a ban on exporting weapons during its war with Russia as Ukraine defends itself against a much larger enemy. The country has pushed to accelerate the domestic weapons production to better arm its soldiers on the frontline to confront their well-equipped adversary. Ukrainian companies have transformed processes at their manufacturing facilities since the invasion, rapidly stepping up production of drones as well as other weapons.

This week Washington and Moscow began talks aimed at ending the war that began with Russia's full-scale invasion of Ukraine in February 2022. US President Donald Trump cut Ukraine out of negotiations and appears more sympathetic to Russia, in an about-face in US policy that has rattled Ukraine and its European allies.

Visitors examine military technology at Ukraine's pavilion at Idex in Abu Dhabi. Antonie Robertson / The National
Visitors examine military technology at Ukraine's pavilion at Idex in Abu Dhabi. Antonie Robertson / The National

Drones, rockets and armoured vehicles

NAUDI is showcasing 20 defence companies at Idex, mostly focused on unmanned aerial vehicles (UAVs). Exhibitors said they are at the defence expo primarily to update international buyers about their latest products and encourage foreign sales of military equipment and spare parts to Ukraine.

Although an export ban remains in place, defence deals can take years to conclude and Ukrainian companies said they want to get a head-start on talking to prospective customers so that they are ready to speed up negotiations once the ban lifts.

"We also have a diplomatic role to show that Ukraine still exists, still fighting, still providing high-end technology," Mr Goncharov said.

Ukrspecexport, a state-owned company for export and import of defence products, is showcasing about 40 products at its stand, including laser-activated munitions and AI-driven drones.

Ukrainian defence companies are mainly targeting buyers from Nato member countries, Middle East, Africa, Asia and Eastern Europe.

Touting the latest Ukrainian UAVs, GPS-jamming systems, rockets and armoured vehicles that have been used in the war with Russia, the NAUDI boss said there has been "huge interest" at Idex.

Ukrainian defence manufacturer UKR Armo Tech also unveiled its latest armoured vehicle, the GYURZA-O2, at the expo this week. The company, established in 2022 with 30 workers, now employs 1,500 people as it has boosted production capacity to meet orders from Ukraine's armed forces.

"It's not allowed to export Ukrainian [arms] product now but we are looking at the future, we want to show potential customers our products and after our government allows us to sell abroad, these customers will know us," Mykola Riabyi, financial director of UKR Armo, told The National.

The company is ready for international sales and partnerships and has received positive feedback in discussed during Idex, where it is targeting customers from the Middle East and Africa, he said.

Arms exports may resume this year

NAUDI's chief executive expects the Ukrainian government's ban on arms exports to be lifted this year following discussions with officials in 2024.

"I'm pretty sure that the decision for opening up the exports will be made because 2024 was the year of high-intensity discussions that we need to start exporting our production," Mr Gonchorov said. "Starting from 2022, we launched new segments, technologies and export potential for prospective companies."

Ukraine’s defence companies can produce €30 billion ($31.5 billion) worth of weapons every year, but Kyiv can only afford to spend €7 billion to €10 billion, according to NAUDI.

The solution to fill this gap is to start exporting Ukrainian military equipment or to encourage partner countries to buy Ukrainian products for the Ukrainian army, Mr Gonchorov said.

Earlier this week, the UAE and Ukraine formally signed a Comprehensive Economic Partnership Agreement as they seek to boost trade and investment ties.

President Sheikh Mohamed and Ukrainian President Volodymyr Zelensky held talks in Abu Dhabi as part of the Ukrainian leader's visit to the Emirates. The two leaders explored ways to strengthen partnerships in key areas such as the economy, investment, renewable energy and food security.

The Cepa deal is a "good step for further co-operation and to discover each other's countries," even if the announcement does not include military equipment, Mr Gonchorov said.

The UAE knows Ukraine as a reliable and high-tech partner who is "ready to start joint ventures and ready to share technology", he said. "If we increase our agriculture exports to the UAE for example, it will lead to growth in our economy, an increase in taxes from our companies and as a result, an increase in our defence budget."

'From Ukraine, for Ukraine'

NAUDI is also urging Ukraine's partners is to "purchase from Ukraine for Ukraine".

"One of our messages for our partners is that if you want to support Ukraine, you can easily order Ukrainian defence solutions for the Ukraine army, so that you're not only supporting the Ukrainian army, you're also supporting the Ukrainian economy, so you kill two rabbits with one stone," said Mr Goncharov.

Exhibitors said their products are undergoing constant upgrades and modifications in response to the real-time requirements on the battlefield.

"For example, the GPS jamming system has hugely evolved during the last three years because it's like a competition between the UAV and the jamming system and the counter-UAV," said Mr Goncharov.

"This war is extremely technological for us. It's a mix between the First World War with trenches and fortification, and Third World War with artificial intelligence and high-precision weapons ... for us it's a huge challenge, for Ukraine it's a huge tragedy."

Russia's massive exhibit at Idex

Visitors inspect the Russia pavilion at Idex. On display was the T-90MS ‘Breakthrough’ tank that was upgraded based on Russia's incursion in Ukraine. EPA
Visitors inspect the Russia pavilion at Idex. On display was the T-90MS ‘Breakthrough’ tank that was upgraded based on Russia's incursion in Ukraine. EPA

At the opposite end of Ukraine's pavilion, Russian defence companies were out in full force with a massive exhibit of 200 products from companies such as Kalashnikov, UVZ and Shvabe.

Russian state arms exporter Rosoboronexport featured armoured vehicles, combat modules, artillery, ammunition, anti-aircraft systems and small arms.

One of the products on display was the T-90MS ‘Breakthrough’ tank that has been upgraded based on the what Russia calls its "Special Military Operation" in Ukraine.

Russia's arms exports are continuing to its foreign customers, despite the Ukraine war, one of the industry's top officials said.

"We see great demand for our equipment. The portfolio [of exports] is more than $60 billion. We understand that in the current situation we have to supply a lot to the Russian army, but at the same time, the production capacity in increasing," Sergei Chemezov, the head of Russian state industrial conglomerate Rostec, said at a media briefing during Idex. "We increase our potential for exports to our foreign partners."

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Company profile

Name:​ One Good Thing ​

Founders:​ Bridgett Lau and Micheal Cooke​

Based in:​ Dubai​​ 

Sector:​ e-commerce​

Size: 5​ employees

Stage: ​Looking for seed funding

Investors:​ ​Self-funded and seeking external investors

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Updated: February 21, 2025, 11:31 AM