ZenaTech Inc. (NASDAQ: ZENA) announced the formation of Phoenix Aero LLC, a Ukrainian subsidiary based in Lviv that will manufacture counter-UAS and interceptor drone systems for defense customers in Gulf Cooperation Council countries.

The facility targets markets in Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, and Oman. ZenaTech plans to produce the Interceptor P-1 expendable interceptor drone, priced below $5,000, along with the ZenaDrone 2000 autonomous UAV platform and the IQ-Glider marine-based launch station.

"The Middle East is moving decisively toward attritable, AI-enabled counter-drone systems that can be fielded at scale and at unit economics that legacy air defense platforms cannot match," said CEO Shaun Passley.

The company selected Western Ukraine for its aerospace engineering talent, competitive production costs, and proximity to European logistics networks. ZenaTech will engage GCC markets through direct relationships with defense procurement authorities and participation in industry conferences, supported by its Dublin-based EMEA operations.

Phoenix Aero LLC will serve as both a production facility and testing ground for the company's counter-drone technologies. The subsidiary aims to provide AI-enabled defense capabilities in an integrated system designed for regional threat profiles.

ZenaTech operates manufacturing facilities in Arizona, Dubai, and Taiwan, focusing on AI-powered autonomous drone solutions for government, defense, and industrial applications. The company stated it will comply with all applicable export and trade control regulations for its Gulf region operations.