Defense exports pull in $7.2b. in sales

Despite a challenging year marked by a decrease in oil prices and the coronavirus pandemic, Israel’s military exports brought in $7.2 billion in defense contracts last year.

“Despite the intense international challenges and competition, we have managed to keep Israel among the world’s top 10 security exporters with a market share of over $7b.,” said Brig.-Gen. (ret.) Yair Kulas, head of SIBAT, the Defense Ministry’s Export & Defense Cooperation Division, said Monday.

2019 saw a continued decrease in military exports compared to 2017, which saw a record $9.360b. in defense exports. 2018’s figure was $7.5b.

Kulas said there was a “significant increase” in the number of transactions signed in 2019, especially government-to-government (G2G) contracts.

According to SIBAT, in 2019 Israeli companies exported radars and electronic warfare systems (17%), missiles, rockets and air-defense systems (15%), manned aircraft and avionics (13%), observation and optronics (12%), weapon stations and launchers (10%), drone systems and UAVs (8%), intelligence, information and cyber systems (7%), C4I and communication systems (7%), vehicles and APCs (4%), customer service and other (3%), ammunition and armament (3%), naval systems (1%)

The largest distribution of defense exports was in Asia Pacific with 41% (down from 46% the year before) followed by Europe with 26% (up from 15%), North America with 25% (an increase from 6% in 2018), Africa with 4% (up from 2%) and Latin America also at 4% (down from 6%).

“We were expecting to see a trend of growth in G2G agreements throughout the year 2020, but the coronavirus pandemic has devastated the global economy and the defense sector,” Kulas said. “As such, we are adjusting our activities in the Defense Ministry and working to turn this crisis into an opportunity [for international collaboration] for our defense industries.”

A leader in defense, the world has for many years looked to the Jewish state for security and intelligence. Israel’s defense industry has leading international companies exporting to countries across the globe.

Over the course of the year, 120 defense industries – 99 of them small industries from the periphery – were able to sign dozens of significant contracts around the world, with the assistance and support of SIBAT and the Defense Ministry.

Kulas said SIBAT works to connect the smaller industries with international tenders and conferences.