Saudi Arabia Becomes Top Buyer in Taiwan’s Young Drone Industry

Saudi Arabia purchased a record $47.2 million of drones from Taiwan in June, making it the top buyer of the island's young UAV industry. The drones, weighing 7-15 kg, are likely for reconnaissance, according to analysts. Taiwan is developing its drone sector as an alternative to China, which exported $3.1 billion in drones in 2025.

Bloomberg -- Saudi Arabia bought a record $47.2 million of drones from Taiwan last month — a sign the island's nascent UAV industry is becoming more attractive to buyers. Most Read from Bloomberg - Hormuz Route Open Despite Iran Declaration, Maritime Group Says https://www.bloomberg.com/news/articles/2026-07-12/hormuz-route-open-despite-iran-declaration-maritime-group-says?utm campaign=bn&utm medium=distro&utm source=yahooUS - OpenAI Engineer's 'LOL' Moment Set Stage for Legal Fight With Apple https://www.bloomberg.com/news/articles/2026-07-11/openai-engineer-s-lol-moment-set-stage-for-legal-fight-with-apple?utm campaign=bn&utm medium=distro&utm source=yahooUS - Trump Embraces Australian Retirement System Backed by Larry Fink https://www.bloomberg.com/news/articles/2026-07-12/trump-embraces-australian-retirement-system-backed-by-larry-fink?utm campaign=bn&utm medium=distro&utm source=yahooUS The figure, released by the Ministry of Finance in Taipei last week, was the most in a month for any nation in data going back to June 2023. The Czech Republic has previously been a major buyer. It was unclear how Saudi Arabia intended to use the drones, which weighed an average of 7 to 15 kilograms 15.4 to 33.1 pounds . Unmanned aerial vehicles in that weight category can be used for a range of industrial and military purposes. Su Tzu-yun, director of the Division of Defense Strategy and Resources at the Institute of National Defense and Security Research in Taipei, said they were mostly likely for reconnaissance. Taiwan has worked to develop its drone industry since seeing how Ukraine has used the devices to counter Russia. Taiwan has felt an urgency to develop the sector because China wants to bring the democracy of 23 million people under its control eventually, by force if necessary, and the People's Liberation Army fields advanced UAV capabilities. Taiwan's drone industry is positioning itself as an alternative to China, and has been working with the US on developing UAV tech. Still, it's much smaller than China's and the island's drone makers continue to face challenges, including a limited domestic market and higher production costs than Chinese competitors. The government has introduced policies to encourage exports in an effort to expand overseas demand and lower production costs through greater scale. In 2025, Taiwan exported $93.4 million worth of drones, up about 2,000% from a year earlier. The Czech Republic and Poland were the largest destinations, reflecting their roles as hubs for drone shipments destined for Ukraine. In comparison, China exported $3.1 billion of drones in 2025 — more than 30 times Taiwan's total — according to figures from its General Administration of Customs. Read: Taiwan Struggles to Build Drone Defense Force to Counter China Most Read from Bloomberg Businessweek - At 17, She Sued Meta and Google, and Won. Now She's Ready to Tell Her Story https://www.bloomberg.com/news/features/2026-07-03/google-and-meta-lost-a-landmark-trial-to-kaley-but-kept-her-as-a-user?utm campaign=bw&utm medium=distro&utm source=yahooUS - The Shattering of the Middle East's Most Unlikely Friendship https://www.bloomberg.com/news/features/2026-07-10/israel-palestine-conflict-shatters-unlikely-friendship-that-bridged-borders?utm campaign=bw&utm medium=distro&utm source=yahooUS - World Cup Panini Sticker Book Fans Brace for End of a 60-Year Tradition https://www.bloomberg.com/news/articles/2026-07-10/fanatics-panini-fight-threatens-world-cup-sticker-books?utm campaign=bw&utm medium=distro&utm source=yahooUS ©2026 Bloomberg L.P.