Abu Dhabi’s BlueFive plans $3bn investment in defence companies

Abu Dhabi-based alternative asset manager BlueFive Capital is reportedly seeking to raise $3 billion for investing in aerospace and defence companies.

The fund is expected to raise an initial $1 billion by the third quarter of 2026, Bloomberg reported, quoting unidentified sources.

The fund aims to capitalise on a possible increase in defence spending by Gulf states as a result of the Iran conflict. It will target investments in companies whose technologies are aligned with Nato, the report said.

Michael Fallon, a senior adviser to BlueFive and a former UK secretary of state for defence, has been meeting potential investors and companies.

Last month Washington accredited the sale of up to $16.5 billion worth of air defence systems, radars and missiles to Middle Eastern allies, including the UAE and Kuwait. 

In March the UAE spent an estimated $1 billion a day shooting down drones and missiles in the first 48 hours of the conflict in the Gulf, analysts told AGBI.

In February BlueFive Capital launched an aircraft leasing platform targeting regional and international airlines.

Last year Mumtalakat Holding, Bahrain’s sovereign wealth fund, took a stake in BlueFive. 

The private equity company has $4.4 billion in assets under management as of November, according to its website.

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