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US-Iran Conflict Fuels Demand for Drone Systems in the Gulf

Powerus, a drone company backed by President Donald Trump's eldest sons, has been in talks with officials in Abu Dhabi to discuss selling weapons to the United Arab Emirates as the country strengthens its defense systems against potential attacks from Iran. According to individuals with knowledge of the matter, Powerus is one of several drone firms pitching advanced defense systems in the Gulf petrostate in the past month. Defense manufacturers have been actively promoting their products in the region amidst heightened demand, with the US-Israel war against Iran escalating tensions in the area.

The talks with Powerus have not resulted in a finalized deal, according to sources who requested anonymity to discuss private information. A Powerus spokeswoman declined to comment on the matter. The UAE Ministry of Foreign Affairs and Abu Dhabi's media office did not respond to requests for comment, while the UAE's Ministry of Defence failed to respond to calls and an email seeking comment.

The negotiations underscore the growing appetite for drone systems in the region due to the ongoing Iran war, which has entered its second month. Iran's fleet of low-cost drones presents a challenge to its adversaries, including the US and its partners in the Middle East, as they confront the Islamic Republic's small, rudimentary attack drones with American-made missile interceptors that cost millions of dollars to produce.

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CompanyProductDescription
PowerusGuardian-1Interceptor designed to take down "kamikaze" drones, including Iran's Shahed-136 attack drones
IranShahed-136Low-cost attack drones used by Iran

The mismatch between the cost of American-made missile interceptors and the low-cost drones used by Iran is creating potential opportunities for companies that make cheaper counter-drone defense systems, including Powerus. Earlier this month, Powerus introduced the Guardian-1, an interceptor designed to take down "kamikaze" drones.

Powerus plans to go public by merging with a Nasdaq-listed golf-course operator, a move announced earlier this month. Donald Trump Jr. and Eric Trump have invested in the combined business, with the pair also being active investors in drone deals and partners at a fund called American Ventures, which held stakes worth nearly $1 billion in drone companies. They are also executives at the Trump Organization, the family real estate business.

Trump Jr.'s investments in defense technology are drawing scrutiny from the president's opponents in Congress. In a letter to Defense Secretary Pete Hegseth earlier this year, Democratic Senator Elizabeth Warren asked for more information on government contracts awarded to Unusual Machines Inc., a drone-parts maker that Trump Jr. backed separately. In a follow-up seeking additional information on Powerus last week, Warren asked whether the firm had received any government funds and questioned whether "contracts are being fairly awarded to companies based on our national security and defense requirements — rather than the financial interests of the president's family."

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Unusual Machines also invested in the golf company that is taking Powerus public. Former US military leaders are advising Powerus, with General Charles Q. Brown, former chairman of the Joint Chiefs of Staff, and retired Lieutenant General Keith Kellogg serving as strategic advisers to the company.

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