Israeli defense tech firm Controp gets go-ahead to set up regional arm in Abu Dhabi

The Israeli state-owned defense company Controp Precision Technologies has been granted government approval to set up a subsidiary to operate in the United Arab Emirates and neighboring countries as part of an expansion to the Gulf following the Abraham Accords.

The subsidiary, which will initially be named Controp (UAE) Ltd., will be set up and registered within the Abu Dhabi Global Market (ADGM), a free economic zone located on Al Maryah Island, in the capital city of the UAE. The government on Sunday approved the move together with the Defense Ministry and in accordance with the Government Companies Law.

The Abu Dhabi-based firm will serve as Controp’s regional arm in Gulf countries for marketing, sales, development, and maintenance of its electro-optical systems used for intelligence, surveillance, and reconnaissance missions across air, land, and maritime applications. The establishment of a local subsidiary will enable Controp to comply with regulatory requirements. At a later stage, it will seek to compete directly in defense tenders in the UAE and neighboring countries.

Israeli defense firms engaged in collaborations with UAE-based firms since the Abraham Accords were signed in September 2020, normalizing the relations between the nations. However, those relations have been strained by the two-year war between Israel and the Hamas terror group in Gaza, which recently ground to a halt following a fragile ceasefire and hostage release agreement.

Controp was founded in 1988 by Israeli Air Force veterans and former Israel Aerospace Industries engineers Shlomo Nir, Sason Benado, Eli Ben-Aharon, and Yehezkel Amber. Headquartered in Hod Hasharon, the firm develops and manufactures advanced electro-optical control systems for intelligence surveillance, such as thermal imaging cameras for defense, paramilitary, and homeland security missions, including border defense.

Its camera systems and sensors are deployed on various platforms, such as small drones, helicopters, light aircraft, land vehicles, surveillance towers, and maritime vessels. Controp is jointly owned by Israeli state-owned defense contractor Rafael Advanced Defense Systems and UAV drone maker Aeronautics Ltd. Rafael indirectly controls Controp, as Aeronautics is fully held by the defense contractor.

Total investment in the establishment and registration of the UAE subsidiary within the ADGM is estimated at up to $30 million. The general manager of the subsidiary firm will be an Israeli citizen, and full control will remain with the Israeli parent company.

ADGM is a special economic zone that acts as a financial hub for the Middle East, Africa, and South Asia markets. It has its own independent, internationally regulated rules and judicial system, and a tax-friendly regime.

In early October, more than a handful of Israeli defense companies were barred from next month’s Dubai Airshow after a “technical review.” The Emirati ban followed recent European restrictions on Israeli defense firms, including a reported Dutch veto on Israeli participation in a large, upcoming military exhibition in Rotterdam. In June, several Israeli companies were barred from displaying at the Paris Air Show, despite France’s President Emmanuel Macron saying in January that Israeli firms would be allowed to attend.

Times of Israel staff contributed to this report.