Since January 2022 Scottish Enterprise had given at least £2,746,000 to Raytheon, Thales and Leonardo, while arms companies operating in Scotland were given over £10million in Scottish Enterprise funding between 2016 and 2020 and an estimated further £1m since the most recent war began.
It was argued that this money did not go to weapons manufacture but rather to support jobs, but the SNP government came under pressure to stop funding altogether.
Mr Swinney told Holyrood in September that “any defence company seeking support from the Scottish Government will have to demonstrate that its products are not involved militarily with Israel”.
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However, two high-profile figures from Scottish Enterprise will attend the DPRTE Scottish Defence Procurement & Supply Chain Summit 2026 alongside representatives from arms companies with ties to Israel.
Italian company Leonardo produces laser targeting components for Lockheed Martin at its factory in Edinburgh, which are installed on the F-35 fighter jet, as well as the Apache attack helicopter.
Lockheed Martin sells the aircraft to the Israel Defence Force, which has used the F-35 in the Gaza war.
Leonardo says it does not supply Israel directly and is subject to UK government export controls.
The company’s CEO, Roberto Cingolani, told Corriere della Sera last year that he was “outraged by what is happening in Gaza and by Israel’s disproportionate reaction to the ferocious Hamas attack on October 7” but that the fact it manufactures components for the jets does not make the company complicit.
Thales, a French company, has a contract with Israeli defence contractor Elbit Systems, which produces 85% of drones used by the Israel Defence Forces as well as the same proportion of the country’s land-based equipment.
It produces the Watchkeeper drone for the British army, which is based on the Elbit Hermes 450 which has been used in Gaza.
The company says while it does have a partnership with Elbit it does not supply Israel.
It said: “Thales adheres to the UK Government’s industry control system for overseas sales, one of the most rigorous and transparent of its kind in the world.
“In the UK, we have an SME JV with Israeli company Elbit, called U-TacS. This is a UK-registered company that supplies systems to the UK MOD. It does not supply the Israeli military or Israeli MOD.”
The event programme for the summit shows that two staff from Scottish Enterprise will be in attendance.
Rhona Allison, managing director of productivity and business growth, will appear on a panel called ‘Economic Growth: Defence as an Engine for Scottish Prosperity’ alongside the head of digital strategy for Thales UK, Stewart MacPherson, and Mark Stead, senior vice president of radar and advanced targeting at Leonardo.
Leonore Frame, domain specialist, maritime, defence & security at Scottish Enterprise, will also appear on a panel.
Event partners include the UK Ministry of Defence, Thales, and BAE Systems.
The Gaza Genocide Emergency Committee said: “On 3 September 2025, First Minister John Swinney made a categorical pledge in parliament that no further Scottish Government funds would be allocated to any companies in Scotland sending weaponry to Israel.
“We have yet to see this policy fully implemented, and to receive documented proof of such from Scottish Enterprise.
“However, given that this is the government’s formal position, Scottish Enterprise attendance at this event makes any kind of interaction with these companies a clear violation of the policy.
“Any engagement with Leonardo or Thales would be an abrogation of the Scottish Government’s obligations – as instructed by the International Court of Justice – not to enable Israel’s genocide.
“As the genocide in Gaza and the mass bombing of Lebanon continues, we want a clear explanation as to why Scottish Enterprise are attending this event, and an assurance that their participation will be immediately cancelled.”
Israel is facing a charge of genocide brought by South Africa at the International Court of Justice, but a ruling is not expected for many years.
However, the country’s actions in Gaza have been described as breaching the genocide convention by the International Association of Genocide Scholars, Amnesty International, Médecins sans Frontières, a UN Commission of Inquiry and others.
A spokesperson for Scottish Enterprise said: “Attendance at this industry event is in line with Scottish Government policy and engagement with companies at events does not imply entitlement to support.”
