European defense startups eye commercial deals and hiring push in the Middle East amid the Iran war

European defense startups are accelerating commercial talks and hiring in the Gulf as the Iran war drives demand for counter-drone and missile systems. Companies from the U.K., Germany, France and Ukraine are in discussions with Middle East governments after more than 3,000 drones and missiles were fired at the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, according to the Center for Strategic and International Studies. The U.K. government recently convened a meeting of defense firms with ambassadors and defense attaches from Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Iraq and Jordan to explore rapid supply of new defensive equipment.

"We're having a ton of inbound interest," said Oleg Rogynskyy, CEO of Uforce, describing Gulf demand as "skyrocketing" since the start of the Iran war. Rogynskyy added that Gulf customers are seeking guidance "to figure out how to do large-scale, unmanned operations."

Context and commercial activity

• Frankenburg Technologies, an Estonia-headquartered startup developing missiles to intercept drones, has seen commercial conversations with Gulf states speed up, CEO Kusti Salm told CNBC. He said the potential order volume from Gulf states "is in the thousands of missiles" and that Frankenburg is working with customers to meet demand on an "expediated delivery schedule." The company did not disclose which governments it is speaking with.
• Cambridge Aerospace, based in the U.K., announced two missile and drone interceptor products in September: a low-cost, scalable interceptor positioned for cruise missiles and large drones, and another designed for higher-speed, higher-value targets. Cambridge declined to comment to CNBC on Middle East commercial discussions; the Financial Times reported the company was in talks to raise new funding at more than a $1 billion valuation.
• Uforce, a Ukrainian-U.K. startup developing counter-uncrewed aerial systems, maritime and strike drones and battlefield software, raised $50 million at a valuation above $1 billion earlier this month. Rogynskyy said lessons from the Ukraine conflict "are directly applicable to what is happening in Iran, both from an operational, tactical and strategic perspective."
• Valarian, a U.K. company building digital infrastructure for sensitive use cases including defense, did not have Gulf defense contracts before the conflict but CEO Max Buchan said commercial discussions with Gulf states have increased since the Iran war began.
• Sector-wide funding has surged: Dealroom data show defense tech startups raised $1.8 billion in 2025 — nearly three times the previous highest yearly figure — and $854 million so far in 2026.

Hiring and outlook

Startups are moving quickly to establish regional footprints. Uforce said it plans to hire a permanent Middle East team, aiming to recruit five to 10 employees in the next few weeks after deploying a Ukrainian delegation to the region. Frankenburg — which had no regional staff before the war — said it will also hire "significantly" in the Middle East to meet projected orders. The wave of interest has positioned the U.K. and Germany as key hubs for new defense companies, with France and Ukraine producing increasingly well-funded startups.

Governments of the UAE, Saudi Arabia, Qatar and Kuwait have been approached for comment; the Bahraini government declined to comment. With demand for interceptors and unmanned systems rising, European startups appear set to deepen commercial ties and expand personnel in the Gulf as regional military requirements evolve.