The Other Side Of War: The Growing Israeli Military Export

By Gideon

Per capita value of around $300 in exports for each resident, Israel is at the top of the list. Even the United States, by far the world’s largest arms exporter, only has per capita weapons sales of $90. Israel’s exports are growing rapidly,

“Israel has been in a perpetual state of conflict with its neighbors since the country’s founding. It feels threatened from all sides; it is small and doesn’t possess a massive army. ‘Innovative military technologies, rather than a massive army, have been viewed as strategically crucial for Israel given its relatively small size,’ says Dan Peled, a business professor at the University of Haifa.” – SPIEGEL ONLINE

Forced to develop military systems for its own defense, Israel found itself on the cutting edge of technology, developing the most advanced weapon systems available. Countries all around the world invest billions of dollars in Israeli systems for their own defense. Israel has developed a largely self-sufficient domestic defense industry, which satisfies the majority of its defense requirements; however, the nation continues to rely on external technologies to fulfill its more advanced requirements, such as aircraft, air defense systems, and submarines. Much of the exports are sold to the United States and Europe. Other major regions that purchase Israeli defense equipment include Southeast Asia, Latin America and India.

The Israeli military industry is a major player in the global arms market and is the 6th largest arms exporter in the world as of 2014.  Three Israeli companies were listed on the 2010 Stockholm International Peace Research Institute index of the world’s top 100 arms-producing and military service companies: Elbit Systems, Israel Aerospace Industries and RAFAEL. Israeli expertise is in unmanned aerial vehicles, missile defense systems, and defense electronics. There are approximately 150 defense firms in Israel, with combined revenues of an estimated $3.5 billion. The industry employs close to 50,000 people, all of whom share a commitment to high levels of research and development and the ability to make use of the IDF’s combat experience.

There are reasons behind Israel’s advances and the quality of the military technology it manufactures. Given its modest resources, Israel’s defense R&D community succeeds in developing state-of-the-art weapon systems, often the first of their kind in the world. A study conducted by the University of South Wales in Australia concluded. Israel doesn’t shy away from investing in risky research projects and, by doing so, develops radically innovative defense capabilities.

Countries may vote routinely against Israel in the United Nation, but when it comes to protecting their own homelands, they come to Israel to purchase the best and most sophisticated military equipment. If all the countries who purchased Israeli military technology had voted were their money is, Israel would have been one of the most popular countries in the world.



The excerpts below are form INS Jane’s 360, the reputable online military and defense magazine. It is a list of purchases of Israeli technology in the past six months. They are just the tip of the iceberg. Most military equipment purchases are confidential due to the nature of the business and the official anti-Israeli policies of some of the countries who do business with Israel.  

12 January 2017 – Vietnam, Israel pledge to expand defence ties

Senior defence officials from Vietnam and Israel have pledged to expand defence ties, it was announced on 11 January.

A statement by the Ministry of Defence (MoD) in Hanoi said that following talks between the two parties, Vietnam and Israel would look to increase activities in defence research, development and production as well as technology transfers.

Expanded defence ties will also facilitate training and education programmes and exchanges, it said.

The MoD said the defence co-operation talks were led by General Pham Ngoc Minh, deputy chief of staff of the Vietnam People’s Army, and Mishel Ben-Baruch, director of the Israeli Ministry of Defence’s International Defence Cooperation Division (SIBAT).

08 January 2017 – Elbit Systems Brazilian Subsidiary, Ares, Awarded an Approximately $100 Million Framework Contract to Supply Remote Controlled Weapon Stations

Haifa, Israel, January 8, 2017 Elbit Systems Ltd. (NASDAQ and TASE:ESLT) (Elbit Systems) announced today that a Brazilian subsidiary, Ares Aeroespacial e Defesa S.A. (Ares), was awarded a framework contract, in a total value of approximately $100 million, to supply 12.7/7.62 mm Remote Controlled Weapon Stations (RCWS) to the Brazilian Army. The contract includes associated equipment and services. The RCWS, named REMAX, will be supplied over a five-year period. An initial production order, valued at approximately $7.5 million, has been received.

03 January 2017 – Elbit Systems Awarded from Rafael Two Contracts in a Total Amount of $35 Million for Supply of Laser Designators to Countries in Asia-Pacific

Haifa, Israel, January 3, 2017 Elbit Systems Ltd. (NASDAQ and TASE: ESLT) (Elbit Systems) announced today that it was awarded two contracts from Rafael Advanced Defense Systems Ltd. for the supply of airborne laser designators, in a total value of approximately $35 million. The contracts will be performed over a three-year period and systems will be supplied by Rafael to two countries in the Asia-Pacific region.

20 December 2016 – Italy receives first of two G550 CAEW aircraft from Israel

Italy has received the first of two G550 Conformal Airborne Early Warning (CAEW) aircraft from Israel that were procured under a reciprocal defence agreement signed in 2012.

The delivery of the CAEW aircraft by Israel Aerospace Industries (IAI) was announced by the Israeli Ministry of Defence (MoD) on 19 December. It marks the latest stage in an approximately INS4 billion (USD1.03 billion) agreement whereby Italy acquired its G550 CAEW platforms and a high-resolution optical military satellite system in exchange for providing Israel with 30 Alenia Aermacchi M-346 (‘Lavi’) jet trainers.

16 December 2016 – Czech Republic picks Elta for radar requirement

The Czech Ministry of Defence (MoD) announced on 14 December that it had selected IAI Elta Systems as the winner of its tender for new 3D mobile air defence radar (MADR) for the Army of the Czech Republic (ACR).

The MoD said it will prepare a contract with Elta Systems before 23 December to supply eight ELM-2084 multimission radar (MMR) systems worth CZK2.9 billion (USD112.3 million) and intends to have the contract signed by mid-2017 with final deliveries of all systems to be supplied no later than 2021.

07 December 2016 – Argentine Coast Guard to procure up to four fast patrol boats from Israel

The Argentine Ministry of Security is in negotiations to acquire up to four Shaldag-class Fast Patrol Boats for its Coast Guard (Prefectura Naval Argentina) from Israeli manufacturer ISL for an undisclosed amount.

The deal, revealed on 6 December, was discussed last month when Argentine Minister of Security Patricia Bullrich visited Israel.

The new vessels are to be deployed on rivers for counter-drug missions and for border patrol.

23 November 2016 – Elbit Systems U.S. Subsidiary Receives U.S. Army ID/IQ Mortar Weapon Systems Contract Worth up to $103 Million

Haifa, Israel, November 23, 2016 Elbit Systems Ltd. (NASDAQ and TASE: ESLT) (Elbit Systems) announced today that its U.S. subsidiary, Elbit Systems of America, LLC was awarded an Indefinite Delivery/Indefinite Quantity (ID/IQ) contract for the production of mortar weapon systems. The contract, with a maximum value of up to approximately $103 million, will be performed over five-year period. An initial purchase order, in an amount that is not material to the company, have already been awarded.

09 November 2016 – Adani forms UAV joint venture with Elbit Systems

Indian company Adani Enterprises has set up a joint venture (JV) with Israel’s Elbit Systems to produce unmanned aerial vehicles (UAVs) in India.

Adani said in a filing to the Bombay Stock Exchange on 8 November that the JV, named Adani-Elbit Advanced Systems India Limited (AEASIL), was formerly established a day earlier.

09 November 2016 – Germany begins Heron 1 UAV operations in Mali

Airbus DS is leasing the Herons from their manufacturer Israel Aerospace Industries (IAI). This arrangement is similar to the one implemented in Afghanistan to support the Bundeswehr contribution to the International Security Assistance Mission (ISAF).

The UAV capability is being provided by Airbus DS Airborne Solutions (ADAS), a subsidiary of Airbus Defence and Space, which signed a contract with the German Defence Procurement Agency in July to provide three such UAVs as well as maintenance and overhaul services as part of the Bundeswehr’s contribution to the UN Multidimensional Integrated Stabilization Mission in Mali (MINUSMA).

08 November 2016 – Rwanda exercises new ATMOS 2000 howitzers

Made by the Israeli company Elbit Systems, the SOLTAM ATMOS is designed for rapid deployment in difficult terrain and incorporates automatic laying and loading systems. However, the RDF’s variant might be 4×6 rather than 6×6 vehicles and not fitted with all-terrain tyres.

Rwanda has previously acquired Israeli-made military equipment. Israel told the UN Register of Conventional Arms that it exported five “160 mm launchers” under the ‘large calibre artillery systems’ category in 2008, an apparent reference to the Israel Military Industries (IMI) Lynx multiple rocket launcher, which can fire rockets of various calibre, including the 160 mm LAR-160. A Ti-67 Tiran – an Israeli-modified T-54/55 tank with a 105 mm L7-type gun and Blazer explosive reactive armour – has also been seen in Rwanda.

07 November 2016 –  Swedish and Brazilian air forces

The Swedish and Brazilian air forces are to use the Elbit Systems Targo helmet-mounted display (HMD) for their Saab Gripen E/F fighter aircraft, it was announced on 7 November.

The Swedish Defence Material Administration (FMV) awarded the airframer a SEK119 million (USD13 million) contract for an undisclosed number of systems to be delivered to the Swedish Air Force (SwAF) between 2022 and 2026. Elbit Systems’ Brazilian subsidiary AEL Sistemas (AEL) will supply the HMDs to both the SwAF and the Brazilian Air Force (Força Aérea Brasileira: FAB).

07 November 2016 – Honduras to refurbish fixed- and rotary-wing aircraft fleets

The Honduran National Congress has approved an agreement signed between the Honduran and Israeli governments for the refurbishment of part of the Honduran Air Force’s (Fuerza Aérea Hondureña: FAH’s) fleet of combat aircraft and helicopters.

The approval of the agreements, signed on 27 July between the defence departments of Honduras and Israel, is the final step before the awarding of contracts valued at USD209 million.

07 November 2016 – India to fast-track varied ammunition purchases

India’s military aims to fast-track the procurement of assorted ammunition from Israel and Russia by the end of 2016 to replenish its stocks, which have been fast depleting since 2008.

Official sources told IHS Jane’s that following an escalation of tensions between India and Pakistan in September, various Indian committees travelled to Tel Aviv and Moscow to negotiate the purchase of more than INR50 million (USD757 million) worth of ammunition and special forces equipment.

06 November 2016 – CYBERBIT, Elbit Systems Subsidiary, to Provide Training and Simulation Platform to the New Cyber-Security Training Range of Maryland

The Cyber Security Training Range of Maryland is the first hands-on cyber-security training center for IT and SCADA security professionals in the U.S.

Haifa, Israel, November 6, 2016 – Elbit Systems Ltd. (NASDAQ and TASE: ESLT) (Elbit Systems), announced today that its subsidiary, CYBERBIT Ltd. (CYBERBIT), was awarded a contract to supply its CYBERBIT Range platform to the Cyber Security Training Range (CSTR) of Maryland, LLC, the first hands-on cyber-security training center for IT and SCADA security professionals in the U.S.


24 October 2016 – Israel Shipyards secures first Saar 72 construction order

Israel Shipyards has secured an order for the construction of the first ship of its new Saar 72 design, IHS Jane’s has learned.

Details on the customer and configuration remain confidential at this time. However, delivery is currently expected in early 2018.

30 September 2016 – Israel in talks to supply Philippine Navy, Coast Guard with Super Dvora patrol craft

Israel Aerospace Industries (IAI) has confirmed that it is currently in discussions with the Philippine government to provide a number of Super Dvora Mk III-type fast attack craft (FAC) for the country’s navy and coastguard services.

Speaking to IHS Jane’s at the ADAS 2016 exhibition in Manila, an official from IAI’s international marketing division emphasised that the talks are still at the preliminary stages, and the Philippine government has yet to decide on the number of platforms to be procured.

21 September 2016 – Kazakhstan looks to start UAV assembly in 2017

Kazakhstan is expected to shortly sign an agreement with Israel’s Elbit Systems to undertake assembly of Skylark and Hermes unmanned aerial vehicles (UAVs) in the Central Asian country.

A representative of Kazakhstan’s state-owned defence equipment manufacturer Kazakhstan Engineering, Zhanty Mamashev, told journalists in the Kazakh capital of Almaty on 16 September that the company was in negotiations for the supply of equipment and obtaining a licence to establish a UAV assembly line in the country.

25 August 2016 – RADA readies RPS-42 portable radar system for Asian customer

Israel’s RADA Electronic Industries will supply its S-band RPS-42 tactical air surveillance radar system to an unspecified Asian customer for countering unmanned aerial vehicles (UAVs), the company announced on 23 August.

RADA stated that it expects a contract, which is of “a significant size and strategically important” to the company, to be received in the third quarter of 2016 with the RPS-42 systems delivered by mid-2017.


INS Jane’s 360