Defense sales grow 40% over past year
Israel brought in $9.2 billion in contracts in 2017 • 58% of exports went to Asia Pacific
Military exports by Israel grew by 40% in 2017, bringing in $9.2 billion in contracts marking the third consecutive year of increased defense exports, Sibat, the military exports unit of the Defense Ministry said Wednesday.
“This is a significant achievement for the Israeli defense export, which attests, above all, to the esteem and prestige accorded to the Israeli defense industries around the world, and the demand that their products have for their products,” said SIBAT Director Brig.-Gen.(Res.) Michel Ben-Baruch.
“The Israeli defense industries are highly respected and trusted in the world thanks to advanced and high-quality technologies based on unique solutions proven by the IDF,” Ben-Baruch added.
According to SIBAT, in 2017 Israeli companies exported missiles aerial defense systems (31%), radar systems (17%), avionics (14%), dry ammunition (9%), communications systems (9%), observation and optics (8%), UAVs (2%), marine systems (1%), and satellites and space (1%).
The largest distribution of Israeli defense exports was in the Asia Pacific with 58% followed by Europe with 21%, North America with 14%, Africa with 5% and Latin America at 2%.
The majority of the new contracts have been signed in the Asia-Pacific region because of an increased focus on terrorism as well as several significant government-to-government contracts which have been signed, strengthening Israel’s position in the global defense market.
Ben-Baruch stated that Israel is in the top ten of defense exporters in the world and a recent report by the Stockholm International Peace Research Institute ranked Israel as the fifth largest arms supplier in the world, following the US, Russia, France and Germany.
According to SIPRI, India remains Israel’s largest weapons market buying various weapons systems, missiles and unmanned aerial vehicles over the last few years. Until recently most of the transactions have been kept quiet, but ties have quietly shifted and the east-Asian country has become one of Israel’s largest buyer of military hardware with defense deals worth $715 million in 2017.
According to the database, Vietnam is Israel’s second largest customer, having purchased $142m. in arms in 2017. Azerbaijan – a Muslim country on Iran’s border – is the third largest weapons market for Israel, having bought $137m. worth in 2017. The Philippines emerged as a major market for Israel for the first time in 2017, having spent $21m. on radar and antitank systems.
Defense Minister Avigdor Liberman hailed the “extraordinary accomplishment” by SIBAT and Israel’s defense industry which has signed a series of contracts with countries around the globe.
Those contracts, Liberman said, “have given confidence to the Defense Ministry’s capabilities and creativity. This achievement will enable us to increase research and development budgets, to create new jobs, and mainly to ensure the IDF’s superiority over the years ahead.”
Herb Keinon contributed to this report.