Israeli defense companies signed new export orders worth a record $13.073 billion in 2023, the Defense Ministry’s Directorate for International Defense Cooperation (SIBAT) said. This is the third year in a row that the record has been broken with new orders worth $12.5 billion in 2022, and $11.3 billion in 2021.
Major interest in Israeli air defense systems included the historic $3.5 billion sale of the Israel Air Defense (IAI) Arrow 3 system to Germany and the $317 million sale of the Rafael David Sling to Finland. SEBAT figures showed that 36% of the deal value in 2023 was in air defense systems, compared to 19% in 2022.
On the other hand, there was a significant decline in new orders for unmanned aerial vehicle systems and drones from 25% in 2022 to just 4% in 2023. Radar systems accounted for 11% of new order quantities last year, compared to 13%. . in 2022 while missile launchers rose to 11% last year from 5% in 2022. Other export orders by percentage were avionics and manned aircraft 5% (10% in 2022), ordnance and ordnance 8% (4%), Surveillance and optoelectronics. 5% (10% in 2022), Vehicles and Armor 5% (5%), Intelligence and Cyber Security 4% (4%), Communications 4% (6%), Marine Systems 1% (1%).
Changing trends
An interesting change from 2022 was the sale of two OptSat500 satellite systems to Azerbaijan by IAI for $120 million, representing 2% of defense orders. The changing trends arose from geographical division. In light of the Chinese threat, the Asia-Pacific region remained the source of the bulk of orders, jumping from 30% to 48%. Demand benefited greatly from the Russian-Ukrainian war in Europe, as orders rose from 29% to 35% of the total. The exact opposite trend was seen in the Abraham Accords countries, which after jumping from 7% in 2021 to 24% in 2022, fell dramatically to just 3% last year. In Israel, there is no warning from these data, because there have been deals with the Gulf countries since the beginning of the year, which resulted from terms and conditions from 2023 that were due in 2024. With regard to the other continents: North America – 9% (after 11% in 2022 ), Latin America – 4% (3% in 2022), and Africa – 1% (3% in 2022).
A breakdown of contracts by financial size shows that transactions worth more than $100 million accounted for 40% (after 48% in 2022). Deals worth between $50 million and $100 million accounted for 17% (12% in 2022), up to $50 million – 23% (20% in 2022), and up to $10 million – 20% (on Similar to 2022).
Challenges during the war
The SIBAT figures also show the challenges Israeli defense companies faced after the war began. First, the backlog of orders continued to grow, despite companies being called upon in the fourth quarter of 2023 to provide large quantities of products and systems in support of the war. Moreover, Israel has faced on the international scene a series of embargoes, the likes of which the country has not faced in five decades.
Related articles
Israeli defense companies record a remarkable victory
Raphael’s C dome makes the first practical interception
Israel replaces the Patriot with David’s sling
Finland signs David Sling deal worth NIS 1.3 billion
“Extraordinary achievements”
Defense Minister Yoav Galant said: “Even in a year in which the State of Israel is fighting in seven different arenas, the State of Israel’s defense exports have succeeded in continuing to break records. This fact is a badge of honor, first and foremost.” Above all, for our defense industries and the creative and talented minds that work in them and push them to the heights of breakthrough and innovation, this year’s figures show that even though our defense industries are being harnessed in their prioritization of the success of the war effort they continue to sign more and more important export deals.
Published by Globes, Israel Business News – en.globes.co.il – on June 17, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
