The Eitan APC (Photo credit: Ministry of Defense )Spokesperson’s Office and IDF Spokesperson’s Unit
Israeli defense exports have doubled in less than a decade and increased by 50% in 3 years. On Wednesday, the Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir and Director of the IMOD International Defense Cooperation Directorate (SIBAT), Brig. Gen. (Res.) Yair Kulas, announced a record $12.546 billion in Israeli defense exports for the year of 2022. Around one-quarter of the agreements signed in 2022 – UAVs and drones.
2022 marked the second consecutive record-breaking year in the scope of defense agreements for Israel. Around 120 Israeli defense industries signed hundreds of significant defense contracts around the world with the help and support of the Israel Ministry of Defense, including mega-deals amounting to hundreds of millions of dollars.
This comes as little surprise considering the popularity of Israel’s defense technologies like the vaunted Iron Dom missile defense system and its world leading defense companies like Rafael Advanced Defense Systems, Elbit Systems and Israel Aircraft Industries (IAI).
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Already this week Jewish Business News reported on how the government of Germany is looking to acquire Israel’s Arrow-3 missile, part of the Iron Dome missile system, from IAI for a reported 4 billion Euros ($4.3 billion). Also, the Israel Missile Defense Organization (IMDO), under the Israeli Ministry of Defense’s DDR&D, along with the Israeli Navy and Israel’s Rafael Advanced Defense Systems, recently successfully completed a series of multi-system and multi-tier tests using the naval version of the Iron Dome system, known as “C-Dome.” The C-Dome, installed on the Israeli Navy’s Saar 6 “Magen” corvettes, successfully intercepted advanced targets which represent threats to the State of Israel’s infrastructure and strategic assets in its exclusive economic zone.
And Jewish Business News also reported in May on how in the first deal of its kind between the two nations, Israel signed a $305 million agreement with the government of Holland to sell the country PULS Rocket Artillery rocket systems from Israel’s defense contractor Elibit Systems for use by the Royal Netherlands Army.
In recent years, the Israel Ministry of Defense has defined the field of defense exports as a central priority. The Ministry of Defense led a national effort to expand defense exports to new markets, reduce regulations and remove bureaucratic barriers. In addition, the ministry has made intensive international efforts focusing on strengthening strategic ties and government-to-government export agreements (GTG). The cooperation between the Ministry and the Israeli defense industries is manifested in a sharp increase in the scope of new contracts for the third year in a row in accordance with Defense Export Control Agency (DECA) regulations and international conventions.
Record set in the export of UAVs and drones, exports between countries increased ten-fold, with half of the agreements valued at over $100 million. Exports to Abraham Accords countries reached approximately $3 billion.
Significant tiers of defense exports in 2022: UAV and drone systems (25%), missiles, rockets, and air defense systems (19%), radar and EW (13%), manned aircrafts and avionics (5%), observation and optronics (10%), weapon stations and launchers (5%), vehicles and APCs (5%), C4I and communication systems (6%), intelligence, information and cyber systems (6%), ammunition and armament (4%), maritime systems (1%), services and other (1%).
Defense export data by geographic distribution: Asia and the Pacific Region – 30%, Europe – 29%, North America – 11%, Abraham Accords countries – 24%, Africa – 3%, Latin America – 3%.
The rate of export agreements between countries (GTG), signed by the Ministry of Defense has reached an all-time high, over $4 billion compared to $412 million in 2018. This constitutes a 10-fold increase in 5 years.
Distribution of agreements by financial scope: Agreements over $100 million (48%), agreements between $50-100 million (12%), agreements up to $10 million (20%).
Israel’s Minister of Defense Yoav Gallant said, “The remarkable data unveiled by the Israeli defense establishment, reaching new heights in defense exports, showcases the State of Israel’s strength and excellent technological capabilities. Through the creativity and innovation of both the Israeli defense establishment and the Ministry of Defense, we not only outpace our adversaries but also sustain our qualitative edge.”
