DUBAI — Anduril Industries, the U.S. defence technology company, is in talks to raise a new funding round that would value the firm at roughly $100 billion, more than triple its valuation a year ago, according to a Reuters report citing people familiar with the matter. The development is being closely watched across the Gulf, where sovereign wealth funds and state-backed defence conglomerates have steadily increased exposure to Western autonomous systems and AI-enabled military technology.
Gulf capital and the defence-tech boom
Abu Dhabi’s Mubadala Investment Company and other regional funds have participated in earlier Anduril funding rounds, part of a broader push by UAE sovereign wealth vehicles to gain early access to defence and dual-use technology companies before public listings. A valuation jump of this scale underscores the premium investors are placing on autonomous drones, counter-UAS systems and AI-driven battlefield software — categories directly relevant to UAE state entities such as EDGE Group and Tawazun Council, both of which have pursued partnerships and co-development agreements with Western defence-tech firms.
Analysts note that Anduril’s valuation trajectory mirrors the broader repricing of defence-adjacent AI companies globally, a trend the UAE has sought to capture through direct investment and joint ventures rather than passive fund exposure. With defence spending across the GCC projected to remain elevated amid regional security concerns, local sovereign investors are likely to face continued competition for allocation in high-profile U.S. defence-tech rounds.
Implications for UAE investors and founders
For UAE-based venture funds and family offices, the Anduril round reinforces a pattern: late-stage defence and AI infrastructure deals are commanding valuations once reserved for consumer technology unicorns. This raises the bar for local funds seeking co-investment slots, while also validating the UAE’s own strategy of building domestic defence-tech champions capable of attracting similar international capital. Founders in the UAE’s growing autonomous systems and cybersecurity sectors may find increased investor appetite as global benchmarks like Anduril reset pricing expectations upward. The round, if finalised, would rank among the largest private valuations in the global defence sector, a benchmark UAE-linked investors are expected to reference in future portfolio decisions.
