UAE Announces $10 Million Investment in Israeli Defense Company

Key Takeaways

EDGE to invest $10 million for a 30% stake in Israel’s Thirdeye Systems, focusing on AI-driven drone detection.
The deal includes an additional $12 million for a joint venture aimed at developing electro-optical object recognition systems.
Thirdeye’s systems are already utilized by the Israeli military and NATO defense bodies amid rising drone threats.

Investment Details and Strategic Goals

EDGE, a defense technology firm based in the UAE, has announced plans to invest $10 million for a 30 percent ownership in Israel’s Thirdeye Systems, which specializes in AI-based electro-optical solutions for detecting drones and unmanned aerial vehicles. This investment is pending approval from Israel’s Defense Ministry.

In addition to the equity stake, EDGE has pledged $12 million to establish a joint venture with Thirdeye. This partnership aims to develop and market electro-optical object recognition systems across new international regions. According to the agreement, EDGE is set to hold a majority stake in the joint venture at 51%, with Thirdeye owning 43%, and a third party taking the remaining 6%.

Founded in 2010 by CEO Lior Segal, along with Yoel Motola and Gil Barak, Thirdeye creates fully automated electro-optical scanning systems designed to identify rapidly changing threats on the battlefield, particularly drones and unmanned aerial vehicles. These systems utilize dual imaging technology that combines thermal and sensor imaging to detect heat emissions and capture light reflections.

EDGE is a conglomerate comprised of private firms and government-owned entities, operating 25 subsidiaries and employing approximately 12,000 personnel across various sectors including defense platforms, cyber defense, and electronic warfare. With operations spanning 140 countries and an impressive order backlog valued at $12.8 billion, EDGE is a key player in the global defense arena.

Thirdeye’s CEO, Lior Segal, remarked on the significance of this partnership, highlighting the strength of their AI products in enhancing national security and the opportunity to broaden Thirdeye’s international presence through collaboration with EDGE.

Thirdeye’s technological advancements have gained traction within the Israeli army and among seven defense organizations in NATO member states. Following the announcement of this deal, Thirdeye’s stock on the Tel Aviv Stock Exchange surged by 26%, resulting in a market valuation of approximately NIS 84 million ($23 million).

As Israel grapples with ongoing conflicts involving Hamas and Hezbollah, the increasing threat posed by drones has become apparent, despite Israel’s robust missile defense capabilities. The collaboration between EDGE and Thirdeye is seen as a strategic move to bolster defenses against these aerial threats.

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