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Edited by: Fern Sidman
In a remarkable achievement, Israeli defense exports reached a record high of $13.073 billion in 2023, according to the Israeli Defense Ministry. This milestone reflects a doubling of defense exports over the past five years, with over a third of the export agreements during this period signed last year alone, as was noted in a report that appeared on Monday on the Jewish News Syndicate web site.
Israeli Defense Minister Yoav Gallant attributed this success to the innovative capabilities and creativity of Israel’s defense industries and personnel. “Israel continues to succeed in its international cooperation and industrial defense exports even during a year marked by war,” Gallant said on Monday, according to the JNS report. He emphasized that while the primary focus of Israel’s military industries is to support the Israel Defense Forces (IDF) and protect Israeli citizens, they also actively seek international cooperation and export opportunities.
2023 marked the third consecutive year of record-breaking defense exports for Israel. The country’s defense industries secured hundreds of significant contracts worldwide, with a notable increase in the export of air defense systems, as per the JNS report. These systems accounted for 36% of the total deal volume, up significantly from 19% in 2022. This surge highlights the global demand for Israel’s advanced air defense technologies.
The diverse range of Israel’s defense exports includes several key categories, reflecting the broad capabilities of its defense sector:
Missile, Rocket, and Air Defense Systems: Making up 36% of the total export volume, these systems represent the largest segment of Israel’s defense exports. The sharp increase from the previous year highlights the effectiveness and reliability of Israeli air defense solutions on the global stage.
Radar and Electronic Warfare: Accounting for 11% of exports, these systems are critical for modern military operations, providing advanced surveillance and countermeasure capabilities.
Weapon Stations and Launchers: Also at 11%, this category includes various platforms essential for armed forces worldwide, enhancing their offensive and defensive operations.
Manned Aircraft and Avionics: Making up 9% of the exports, this segment includes advanced aircraft and the latest avionics technology, crucial for air superiority.
Ammunition and Armaments: Representing 8% of the total, these exports provide the necessary firepower for various military applications.
Observation and Optronics: At 5%, these systems enhance situational awareness and targeting accuracy.
Vehicles and Armored Personnel Carriers: Also at 5%, these vehicles are essential for troop mobility and protection in conflict zones.
Intelligence, Information, and Cyber Systems: This growing field accounts for 4% of the exports, underscoring the increasing importance of cyber capabilities in modern warfare.
Drones: Another 4% of exports, highlighting Israel’s leadership in unmanned aerial systems technology.
C4I and Communication Systems: These systems, also at 4%, are vital for command, control, communications, computers, and intelligence operations.
Satellites and Space Systems: Representing 2% of the total exports, these systems are crucial for strategic reconnaissance and communication.
Maritime Systems and Platforms: Making up 1%, this category includes naval vessels and related technologies.
In 2023, Israeli defense exports reached various regions across the globe, with the majority concentrated in Asia and the Pacific Region, which accounted for 48% of the total exports, according to the information provided in the JNS report. Europe followed with 35%, North America with 9%, Latin America with 4%, countries involved in the Abraham Accords with 3%, and Africa with 1%. This wide distribution highlights Israel’s ability to penetrate diverse markets and cater to a broad spectrum of defense needs.
The Israeli Defense Ministry reported that high-value agreements dominated the export landscape:
Agreements over $100 million: These accounted for 40% of all deals, reflecting significant investments in large-scale defense projects.
Agreements between $50-100 million: Comprising 17% of the deals, these contracts highlight mid-range projects that still represent substantial financial commitments.
Agreements up to $50 million: Making up 23% of the deals, this category includes a variety of smaller-scale, yet crucial defense projects.
Agreements up to $10 million: These accounted for 20% of the deals, indicating numerous smaller contracts that collectively contribute to the overall export volume.
The success of Israel’s defense exports can be attributed to several strategic initiatives undertaken by the Defense Ministry. These efforts include strengthening security-strategic relations worldwide, expanding exports to new markets, removing bureaucratic barriers, and reducing regulation, as was indicated in the JNS report. Defense Ministry Director-General Maj. Gen. (res.) Eyal Zamir highlighted the international recognition of Israeli defense systems, particularly in air defense, as a key factor driving export growth.
“Nations worldwide are recognizing the success of Israeli defense systems, especially in air defense, appreciating their crucial role in safeguarding citizens,” Zamir said, as was reported by JNS. The effectiveness and reliability of these systems have positioned Israel as a leader in the global defense market.
Since the onset of recent conflicts, the Israeli Ministry of Defense has invested tens of billions of dollars in domestic procurement. This strategic approach not only strengthens Israel’s internal defense capabilities but also boosts its global export potential. By prioritizing domestic procurement, Israel ensures that its defense technologies are battle-tested and proven effective, enhancing their appeal to international buyers.
JNS also reported that Zamir emphasized the positive impact of these investments on future export growth: “This strategic approach is expected to further boost our global defense export.” As Israel continues to innovate and develop advanced defense technologies, its position in the global market is likely to strengthen further.
The record $13.073 billion in defense exports achieved by Israel in 2023 is a testament to the country’s robust and dynamic defense industry. The widespread global distribution of exports, coupled with significant high-value agreements, underscores the international demand for Israeli defense technologies. Strategic initiatives to expand market reach, coupled with substantial domestic investments, have positioned Israel as a key player in the global defense sector.
In related news, JNS reported on Tuesday that in a landmark decision, the Tribunal de commerce de Paris, or Commercial Court of Paris, has overturned a ban that previously prevented Israeli defense companies from exhibiting at the 2023 Eurosatory trade show, a premier biennial weapons trade exhibition. This ruling also deemed discriminatory a separate prohibition that barred all Israeli citizens from attending the show unless they signed a waiver disavowing any official capacity.
The ban, which was imposed just 18 days before the show’s opening, sparked significant controversy and was challenged by the France-Israel Chamber of Commerce, according to the JNS report. Seventy-four Israeli firms were set to participate in the exhibition, with ten of these companies scheduled to showcase weaponry. The abrupt prohibition posed substantial financial and reputational risks for these firms, which had invested considerable resources in preparing for the event.
The France-Israel Chamber of Commerce spearheaded the appeal against the ban, with French attorney Patrick Klugman representing Israeli interests at the hearing, the JNS report indicated. The court’s decision to reverse the ban was celebrated as a significant victory for Israeli businesses and their advocates.
Patrick Klugman announced the favorable ruling on his X account, highlighting the court’s recognition of the discriminatory nature of the ban. This decision not only allows Israeli defense companies to exhibit but also reaffirms the principles of non-discrimination and equal participation in international trade events.
