Israeli defense exports reach new peak

Israel’s defense exports have reached a new peak in 2022, with new contracts worth $12.5 billion (NIS 45.5 billion), Public Defense Minister Eyal Zamir, and the head of the ministry’s International Defense Cooperation Directorate, Yair Kulas, announced today. This figure keeps Israel in the top ten countries for defense exports. Between 75% and 80% of Israel’s defense production is for export.

Israel’s defense exports increased by 30% from $8.55 billion in 2020 to $11.3 billion in 2021, and by another 10% in 2022.

Unmanned aircraft systems and unmanned aircraft accounted for 25% of the value of defense export contracts. State-to-government deals were ten times their level in 2018, at $4 billion. Half of the contracts in 2022 were worth more than $100 million. Exports to the Abraham Accord countries reached $3 billion, representing 24% of total defense exports, up from 7% in 2021.

In the geographical breakdown, Asia Pacific accounted for 30% of the total, and Europe 29%. In 2021, the share of Europe is 41% and Asia Pacific is 34%.

After drones and drones, the breakdown by category in 2022 is missiles, missiles and air defense systems – 19%; radar and electronic warfare systems – 13%; manned aircraft and avionics – 5%; surveillance equipment and electronics – 10%; launch and launch systems – 5%; vehicles (including armored vehicles) – 5%; communication systems – 6%; intelligence and electronic systems – 6%; ammunition – 4%; marine systems – 1%; Customer service and miscellaneous – 1%.

Defense Minister Yoav Gallant said, “The unprecedented numbers presented by the defense establishment, on top of which is a new record in the value of defense exports, illustrate in the most remarkable way the security strength of the State of Israel and its technological superiority. our enemies and maintaining our qualitative superiority over them.The citizens of Israel have great reason to be proud, whether in the extraordinary numbers, or even more than that, in those behind them.

“Global changes have led to a great demand for Israeli technologies, which have gained a high reputation around the world, and we expect this trend to continue and strengthen in the coming year.”

“Our defense exports make a vital contribution to the country’s security, economic growth and national strength,” Zamir said. He pointed out that nearly 100,000 families in Israel earn their livelihood directly or indirectly from the military industry, and a large percentage of them are in the country’s periphery.

Elbit wins another contract in Germany

Meanwhile, with the German parliament expected to approve a €560 million advance payment on a €4 billion deal to purchase the Israeli Arrow 3 missile defense system, another deal was signed with Berlin. Elbit Systems today announced that it has been awarded an additional contract from Airbus Helicopters for the Bundeswehr Federal Office for Equipment, Information Technology and In-Service Support, to provide airborne electronic warfare (EW) self-protection systems for the CH 53 GS. / GE Transport Helicopters, as part of a platform upgrade program led by Airbus Helicopters.

Elbit Systems, backed by Elbit Systems Deutschland, will provide digital radar warning receivers (RWR), electronic warfare control units (EWC) and counter gauge distribution systems (CMDS). The company says its digital RWR and EWC quickly detect and accurately identify a wide range of threats, even in a dense electronic warfare environment, enabling timely and reliable warning and effective protection.

“We are proud to collaborate with Airbus Helicopters and appreciate the confidence the German Air Force is placing in our pioneering technologies that will continue to provide better survivability and increase mission effectiveness,” said Oren Sabagh, General Manager of Elbit Systems ISTAR and EW.

This deal, like several others that Israeli defense firms have concluded in Europe recently, shows the impact of the war in Ukraine, which has sent defense procurement budgets soaring across the continent. Israeli defense products have earned a good name all over the world, for example from the second Nagorno-Karabakh war in 2020, where Azerbaijani forces defeated Armenia’s forces partly thanks to the use of drones and other weapons provided by Israel, thus the volume of arms deals grew steadily .

Published by Globes, Israel business news – en.globes.co.il – on June 14, 2023.

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