Iran's army commander Maj Gen Abdolrahim Mousavi, left, and Iranian Defence Minister Aziz Nasirzadeh during an inauguration ceremony of 1,000 new drones joining the Iranian Army in Tehran, Iran. EPA
Iran's army commander Maj Gen Abdolrahim Mousavi, left, and Iranian Defence Minister Aziz Nasirzadeh during an inauguration ceremony of 1,000 new drones joining the Iranian Army in Tehran, Iran. EPA
Iran's army commander Maj Gen Abdolrahim Mousavi, left, and Iranian Defence Minister Aziz Nasirzadeh during an inauguration ceremony of 1,000 new drones joining the Iranian Army in Tehran, Iran. EPA
Iran's army commander Maj Gen Abdolrahim Mousavi, left, and Iranian Defence Minister Aziz Nasirzadeh during an inauguration ceremony of 1,000 new drones joining the Iranian Army in Tehran, Iran. EPA

Iran boosts long-range drone fleet with 1,000 unmanned aircraft


Robert Tollast
  • English
  • Arabic

Iran’s army has taken delivery of 1,000 new long range drones, likely to guard against any future conflict with Israel.

The drones would increase “the army's long-range strike power against distant targets”, state-linked Tasnim news agency said. Iran said that the drones had a range of 2,000km and included Arash drones, which have been used in attacks against Israel.

In April, Iran launched hundreds of ballistic missiles, low flying cruise missiles and drones against targets in Israel, almost all of which were shot down by a quickly assembled coalition including the US, Britain and France. The cost of intercepting the huge attack was put at about $1 billion and in some cases US F-15s involved in the operation ran out of missiles going after drones, shooting them down at close range with autocannons.

Israel retaliated, prompting a second major attack in October, and large-scale Israeli air raids against air defences and military sites.

Army commander Maj Gen Abdolrahim Mousavi announced the drone acquisition, alongside Defence Minister Brig Gen Aziz Nasirzadeh, on Sunday.

Iran already has one of the world’s largest drone arsenals, and has supplied a variety of domestically designed and produced drones to the Houthis in Yemen, Hezbollah in Lebanon and Iran-backed militias in Iraq. Iran has also supplied its drone technology to Russia, which mass produces the weapons for its war in Ukraine at the Alabuga special economic zone.

Tasnim said the drones have the “capacity for sustained, autonomous flight without a need for external control.” Iranian drones such as the Shahed 136 can reach targets on complex preprogrammed routes, causing problems for air defence units which are forced to spread out over vast areas. They fly “nap-of-the-earth,” at very low altitude to avoid radar beams, which can be obstructed in hills and valleys.

To do this, they use satellite navigation, but weak signals from the US GPS system or Russia’s GLONASS satellite navigation system can easily be jammed or “spoofed”, to trick receivers on drones into changing course.

Israel has disrupted satellite communications during security threats to thwart drone attacks. The drones have a backup inertial navigation system, which calculates the position of the drone based on internal measurements of altitude, bearing and speed, but this is said to be inaccurate, according to Ukrainian defence analyst Oleh Katkov, especially over longer distances.

Newer drones such as the jet-powered Shahed 238 also feature inertial navigation systems. According to Conflict Armament Research, an NGO which has studied wreckage of Iranian drones, and the Institute for Science and International Security, a think tank, their navigation systems rely almost entirely on smuggled Western microelectronics.

Iran said the drones were stealthy due to their “small radar cross section”, a feature of the relatively small weapons which are often not detected at long range.

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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.”

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Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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Updated: January 13, 2025, 11:38 AM