In a landmark development following the normalization of relations between Israel and the United Arab Emirates (UAE) in 2020, an Israeli state-owned defense company has established a subsidiary in the UAE. Controp Precision Technologies, a leading developer of electro-optical systems, will register its new entity in the Abu Dhabi Global Market (ADGM), a prominent economic zone in the Emirati capital. The Israeli Ministry of Defense officially approved the move on Sunday, as reported by The Times of Israel. The Abu Dhabi-based subsidiary will serve as Controp’s regional hub in the Gulf, managing marketing, sales, and maintenance of its advanced surveillance and reconnaissance systems used across air, land, and sea operations. In the future, Controp aims to compete directly for defense tenders in the UAE and neighboring countries. This strategic expansion underscores the deepening economic and political ties between the two nations, which have seen bilateral trade reach $3.2 billion in 2024. However, relations have faced challenges following the Gaza war, with the UAE occasionally criticizing Israeli actions. Despite these tensions, the establishment of Controp’s subsidiary signals continued collaboration in the defense sector. The investment is estimated at $30 million, with the subsidiary managed by an Israeli citizen while retaining full control under the parent company.