Analysis & Reports

The U.S. has deployed approximately 10,700 service members and significant naval and air assets to the Gulf region in response to escalating tensions with Iran. This includes two aircraft carrier strike groups and advanced stealth fighters positioned for potential military strikes. Concurrently, Iran has conducted military exercises with Russian forces, signaling a coordinated response to U.S. actions. Regional allies are on high alert as diplomatic efforts to resolve the crisis continue.

Ahmed Al-RashidSat Feb 21 2026Loading...

The U.S. Army Corps of Engineers awarded a $96.2 million contract to Exyte US for infrastructure construction to support Israel's CH-53K King Stallion helicopters. The project, located in Israel, is set to be completed by March 23, 2029, and is part of Israel's transition from older helicopter platforms. This initiative is supported by the Foreign Military Sales program, which facilitates military aid and procurement.

Elbit Systems and TKMS inaugurated a new manufacturing facility in Israel on February 18, 2026, for underwater structural components for submarines. This facility aims to enhance Israel's defense manufacturing capabilities and create high-quality jobs in the region. The initiative is part of a long-term partnership between the companies and reflects a strategic investment in Israel's defense industry.

SCOPA Defense Industries is reorienting itself to become a major player in the defense sector, focusing on partnerships and local manufacturing in Riyadh. The company plans to showcase its own products by 2028 and aims to localize 50% of defense production in Saudi Arabia by 2030. SCOPA is currently in the development phase and is targeting partnerships with NATO-aligned organizations.

Elbit Systems secured a $277 million contract for the supply of 30 mm turrets and associated munitions from an undisclosed international customer on February 18, 2026. The contract, which will be executed over three years, includes the delivery of the UT30 MK2 turret designed to enhance the firepower and survivability of armored personnel carriers. The turret can operate in both manned and unmanned configurations and is part of a broader trend towards modular upgrades in armored vehicle systems.

Xinxing Import and Export Company showcased the XX-20 unmanned cargo aircraft at the World Defense Show in Riyadh. This aircraft can operate from rough terrain and is designed for logistical support, capable of carrying 1.2 tonnes of supplies. A new version, the XX-20.1, is expected to be released in mid-2026, with Malaysia as its first export customer.

USS Iwo Jima (LHD-7) is undergoing major maintenance and repairs, which are expected to sideline the ship until February 2028. The U.S. Navy has awarded a contract to BAE Systems for repairs worth between $204.1 million and $255.8 million. While currently operating in the Caribbean, the ship's readiness may be impacted by rising tensions with Iran, potentially delaying its maintenance schedule.

Elbit Systems reported record global demand for its Laser Target Designator systems in 2025, reflecting a growing reliance on precision targeting in military operations. The systems, compliant with NATO standards, are increasingly utilized across land and airborne platforms for real-time target designation. This demand is driven by the need for faster targeting cycles and improved coordination in modern battlefield dynamics, particularly with the rise of drone usage.

On February 13, 2026, Gulf countries, including the UAE, Saudi Arabia, and Jordan, officially refused to allow their airspace to be used for military operations against Iran. Despite this, they host US military bases that would be targeted in any Iranian retaliation. This contradiction highlights the Gulf states' desire to avoid direct involvement in conflict while providing logistical support for US operations.

Ahmed Al-RashidMon Feb 16 2026Loading...

Russia showcased new weapons, including the 300-mm 'Sarma' rocket system and BTR-22 armored personnel carrier, at the World Defense Show 2026 in Riyadh from February 8-12, 2026. Despite ongoing sanctions, Russia continues to expand its artillery production capabilities using imported machinery. The defense industry aims to leverage combat experience in Ukraine to secure export contracts, although this reliance on foreign technology poses long-term risks to its military production capabilities.

Alexandra ReevesSun Feb 15 2026Loading...

Fincantieri plans to boost defense production capacity in Italy and increase revenue by 40% by 2030, driven by rising global defense spending. The company anticipates securing €50 billion in new orders, adding to its existing €60 billion backlog. Additionally, Fincantieri is expanding its undersea business and has signed contracts with foreign customers, including a €200 million deal with Saudi Arabia for torpedoes.

The U.S. Navy faces significant munitions shortages, with Admiral Paparo warning that current stocks are insufficient for a high-intensity conflict in the Western Pacific. A recent wargame revealed that the U.S. could exhaust critical munitions within eight days of engaging in conflict over Taiwan. The ongoing military assistance to Ukraine and Israel further strains U.S. munitions inventories, highlighting a logistical crisis in the defense industrial base.

Marcus ChenTue Feb 10 2026Loading...

Leonardo Aviation Services is managing the Eurofighter programme for the Kuwait Air Force, providing logistics support and training for the fleet of 28 Typhoon aircraft. The last two aircraft were delivered on 6 November 2025, completing the contract. The company employs over 220 personnel and aims to increase this number while ensuring high fleet availability and operational support under a performance-based contract.

The U.S. Air Force deployed at least 42 heavy transport aircraft, including 41 C-17A Globemaster IIIs and 1 C-5M Super Galaxy, to the Middle East from January 18 to 26. This operation is part of a significant logistical effort to enhance U.S. and allied forces in the region, with aircraft departing from bases in Germany and the UK to destinations in Qatar, Jordan, Kuwait, Bahrain, and Saudi Arabia. Additionally, the U.S. Navy's Abraham Lincoln carrier strike group has entered the region.

EDGE signed a collaboration agreement with TII, SteerAI, and Micropolis to deploy an autonomous logistics platform in Abu Dhabi on 27 January 2026. This platform will automate asset movement using unmanned ground vehicles and AI-driven software. The partnership aims to integrate various technologies to create a comprehensive logistics solution, marking a significant advancement in the UAE's autonomous capabilities.

On January 27, 2026, the Israel Ministry of Defense issued a multi-year order for air munitions from Elbit Systems, valued at approximately $183 million. This procurement aims to enhance Israel's defense industrial base and strengthen the IDF's capabilities for future security challenges. Defense Minister Israel Katz highlighted the importance of expanding the domestic defense sector to ensure operational superiority.

The U.S. Air Force moved at least 42 heavy transport aircraft, including 41 C-17A Globemaster IIIs and one C-5M Super Galaxy, to the Middle East between January 18 and January 26, 2026. The aircraft, primarily from bases in Germany and the UK, landed at key locations in Qatar, Jordan, Kuwait, Bahrain, and Saudi Arabia. This operation represents one of the largest short-term cargo movements in recent months, aimed at reinforcing U.S. and allied forces in the region.

The U.S. Navy initiated a $15.8 million barracks renovation project at Naval Support Activity Bahrain on January 12. This project is part of the Navy's 'Sailors First' initiative, aimed at improving living conditions for personnel. The renovations will include new roofing, flooring, plumbing, and electrical systems, contributing to enhanced mission readiness and talent retention.

The U.S. has significantly increased military transport flights and equipment deliveries to the Middle East since late 2025, focusing on bases in Jordan, Israel, Qatar, and Saudi Arabia. This includes the transfer of air defense systems, tanks, and other military equipment. U.S. Air Force fighter aircraft are concentrated at the Muwaffaq Salti airbase in Jordan, while the USS Abraham Lincoln Carrier Strike Group has moved to the Indian Ocean.

Lockheed Martin has secured a $142.6 million support deal for the THAAD missile defense system with the United Arab Emirates, indicating ongoing military cooperation.