Gulf states including Saudi Arabia and the UAE are exploring a $2,500 Ukrainian-designed interceptor drone as a cheaper way to counter Iranian attacks that are depleting stockpiles of U.S.-made missiles, a Japanese firm marketing the technology overseas told Reuters.
Since the start of the U.S.-Israeli war with Iran, Tehran has launched waves of cheap mass‑produced drones, including Shaheds similar to those Russia uses in Ukraine.
Gulf states and U.S. forces have largely relied on costly interceptor missiles to shoot them down, underscoring a broader shift in air combat in which cheaper systems deployed in volume can steadily erode stock of advanced air defence missiles.
"Everyone started doing the maths. It simply doesn't make economic sense and people are finally waking up to that," said Toru Tokushige the Chief Executive of Terra Drone. There has been a surge of inquiries from the Middle East since the war began, he added.
The price of each interceptor drone from Terra Drone is 400,000 yen ($2,526). By comparison, ground-launched Patriot interceptors missiles can cost around $4 million each, while a Shahed drone is estimated to cost as little as $20,000.
In the first week of the Middle East conflict, Iran launched more than 1,000 drones and it is estimated to have the capacity to produce around 10,000 per month.
The Saudi Arabian and UAE embassies in Tokyo did not immediately respond to requests for comment.
Terra Drone, known for commercial drones, announced its entry into military sales last month through a tie-up with a Ukraine start up, Amazing Drones. It has designed the Terra A1, an interceptor drone, to counter Shahed attacks launched at Ukraine by Moscow.
Under their agreement, the Japanese company will market the interceptor overseas while providing investment and manufacturing know-how.
The Terra A1 has yet to be battle tested and is expected to be handed over to Ukraine's military in the coming months for trials, Tokushige said.
Terra Drone already supplies survey and inspection drones to Saudi Arabia's state-owned oil company Aramco and could use its presence in the kingdom to help establish interceptor drone production in the Middle East, he added.
"This is an area where Japan's manufacturing strengths can be fully utilised.”
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Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 30th of April, covering the latest developments you need to know.
A humanoid robot called Sophia took an unusual place at the heart of a classical concert in Hong Kong on Wednesday (29 April), as she performed alongside a live orchestra for the first time.
The United Nations has said that at least 21 people have been executed in Iran and more than 4,000 arrested since the outbreak of war involving the United States and Israel on 28 February.
A Pentagon official provided the first official estimate of the cost of the U.S. war in Iran on Wednesday (29 April), telling lawmakers that $25 billion had so far been spent on the conflict, most of it on munitions. Earlier, Donald Trump said that the U.S. had "militarily defeated" Tehran.
Tensions between the United States and Iran remain high after a U.S. official said President Donald Trump was unhappy with a proposal from Tehran that does not deal with its nuclear programme. Washington is insisting that any talks must address Iran’s nuclear activities.
A report published by Minval Politika has raised new questions over alleged efforts by Luis Moreno Ocampo to shape international pressure against Azerbaijan and influence political dynamics around Armenia.
The decision by the United Arab Emirates to leave OPEC+ on 1 May has put renewed focus on one of the most influential groups in global energy - and how its decisions can shape oil prices worldwide.
Efforts to end the Iran conflict were at an impasse on Tuesday with U.S. President Donald Trump unhappy with the latest proposal from Tehran, which he said had informed the U.S. it was in a "state of collapse" and figuring out its leadership situation.
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President Donald Trump discussed how to mitigate the impact of a possible months-long U.S. blockade of Iran's ports with oil companies, a White House official said on Wednesday, as the U.S. renewed its calls for other nations to help open the Strait of Hormuz.
A senior adviser to Iran’s Supreme Leader warned the U.S. port blockade would fail, saying Tehran has ways to bypass it and could turn to confrontation if pressure persists, even as an extended U.S.–Iran ceasefire remains in place after weeks of deadly fighting earlier this year across the region.
A Pentagon official provided the first official estimate of the cost of the U.S. war in Iran on Wednesday (29 April), telling lawmakers that $25 billion had so far been spent on the conflict, most of it on munitions. Earlier, Donald Trump said that the U.S. had "militarily defeated" Tehran.
European airlines are facing their biggest challenge since the COVID-19 pandemic as the Iran war pushes up jet fuel prices and buffets travel through the Middle East, casting a shadow over the summer holiday season.
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