Europe has switched to a wartime mindset and is surging defense spending to levels not seen since the Cold War: 20% growth in 2024 and in 2025, and a total of around $450 billion across the EU. Europe is also ramping up defense production locally, and seeking to accelerate this process through preferential funding schemes. Ukraine has become a military powerhouse and a global leader in defense tech, such as drones and counter-drone systems. And the tech Ukraine has other countries need, particularly in the Middle East. The upcoming NATO summit in Ankara in July and the prospective EU-GCC summit later this year in Saudi Arabia will continue to shape investment priorities across EMEA. For private equity firms, technology companies, prime defense contractors, and scale-ups operating in the defense sector, this shift creates opportunities to meet rising demand, while also introducing additional regulatory complexity that must be navigated carefully to secure market access and long-term strategic positioning.