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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FormeFormer Cuban President Raúl Castro has been indicted in the United States, according to a senior Trump administration official. The move marks a significant escalation in Washington’s pressure campaign against Cuba’s communist leadership.
A major international conference on “The Role of Youth in Urban Development during Decolonisation Processes” has opened in Baku, bringing together young leaders and experts from around the world as part of the 13th session of the UN World Urban Forum.
Day four of the World Urban Forum (WUF) in Baku brings a packed agenda on sustainable cities and the global housing crisis, with sessions on green housing, smart cities, public spaces and urban rights taking place on Wednesday (20 May) at Baku Olympic Stadium in Azerbaijan.
The red carpet had barely been rolled up after Donald Trump’s departure before Beijing was laying it out again. Vladimir Putin arrived in the Chinese capital on Wednesday for talks with Xi Jinping, just days after Trump’s own high-profile visit.
United Nations World Urban Forum 13 continues in Baku, Azerbaijan on 19 May with sessions and roundtable discussions focused on strengthening dialogue and advancing cooperation in urban development. Organisers say there are nearly 3 billion people globally who face some form of housing inadequacy.
Azerbaijan and Georgia have agreed to resume daily passenger train services on the Baku-Tbilisi-Baku route from 26 May, 2026, marking a major step in restoring regional rail connectivity after services were suspended in 2020 due to the COVID-19 pandemic.
Day four of the World Urban Forum (WUF) in Baku brings a packed agenda on sustainable cities and the global housing crisis, with sessions on green housing, smart cities, public spaces and urban rights taking place on Wednesday (20 May) at Baku Olympic Stadium in Azerbaijan.
Pakistan has deployed around 8,000 troops, fighter jets and air defence systems to Saudi Arabia under a mutual defence agreement, according to security officials and government sources familiar with the arrangement.
Russia is considering the possibility of joint projects with the United States and China, Kirill Dmitriev, Head of the Russian Direct Investment Fund, (Russia's sovereign wealth fund), was quoted as saying by state media on Wednesday.
Two Chinese tankers laden with oil exited the Strait of Hormuz on Wednesday, shipping data showed, brightening hopes that the U.S.-Israeli conflict with Iran may soon be resolved after positive comments from the U.S. President and his Deputy.
Iranian Foreign Minister Abbas Araghchi said Tehran remained committed to reaching a diplomatic settlement with the U.S. while continuing to strengthen its defensive capabilities amid ongoing regional tensions.
Finance ministers from the Group of Seven (G7) have urged the International Monetary Fund (IMF) and the World Bank to increase support for countries hardest hit by the conflict in the Middle East.
U.S. President Donald Trump said on Monday that he had paused a planned attack on Iran after Tehran sent a peace proposal to Washington. He said there was now a “very good chance” of reaching a deal to limit Iran’s nuclear programme.
Turkish Foreign Minister Hakan Fidan and German counterpart Johann Wadephul said Monday that Ankara and Berlin are both keen to deepen strategic cooperation.
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