Geopolitical upheaval boosts Israel’s defense industry 2023

As new combat systems and capabilities emerge on the battlefield, arms competitions are increasing and waiting lists are growing.

Israeli companies profit from the war through nations that offer more generous help to the Ukrainian army, despite the government’s ban on direct exports.

NATO countries are hurrying to refill emergency stocks after helping Ukraine fight Putin. They are updating their arsenals and choosing systems that address threats first seen in Ukraine, such as precision drones that self-destruct on a target or hypersonic missiles that can overcome air defense systems.

No one is willing to terminate this fight. “This conflict is awful but not violent, and the casualties are not unfathomable. “In a war like this, we gain more than we lose,” remarked an experienced defense industry CEO. “In our industry, war means prosperity.”

Israel’s defense industry benefits from geopolitical upheaval.

This prosperity favors Israeli industry. Israel’s defense exports reached $12.5 billion in 2022, with key defense corporations setting records. Finland bought Rafael’s David’s Sling for hundreds of millions of euros and Germany bought IAI’s Arrow 3 missiles for €4 billion as Ukraine waited for Israeli defensive equipment. “War is a good thing,” a top defense official said last week.

Emmanuel Macron’s condemnation of the Israel-Germany missile pact didn’t dampen the IAI’s euphoria. He expressed his dissatisfaction with Germany’s procurement of blue-white missiles instead of France and Italy’s SAMP/T system to NATO military ministers. Germany wants IAI missiles despite Macron’s complaints. The Bundestag authorized a €600 million increase last week.

The IAI’s 70-year history’s greatest year. CEO Boaz Levy and Chairman Amir Peretz were honored by state lawmakers, and Defense Minister Yoav Galant joyfully greeted, shook hands, and grinned for the cameras. The IAI flew a group of Israeli journalists to the salon and dispatched a team to France, comprising several dozen firm employees and Yair Katz, the workers’ committee head.

IAI showcased the “Mars2” reconnaissance aircraft in Le Bourget, together with Arrow 3 missile versions. They also announced armed long-range drone sales to Estonia and “Rotem” tactical rover sales to three NATO members. This special forces and infantry drone is fast and lethal.

CEO Boaz Levy says financial size is not relevant in these agreements. “The doors that open for us in countries where we have not yet sold our rover systems are important in such transactions,” Levy told Calcalist. “These same countries are buying rovers, but in a year, they will need something else, and mega-deals may also arise. This gives us a presence in a key market and fulfills our strategic aim to expand throughout Europe.”

Rafael, inventor of the Iron Dome, David’s Slings, and Iron Beam, unveiled its SkySonic development proposal, the first hypersonic missile interceptor. They also presented “Puzzle,” a cutting-edge system for managing intelligence data from various sensors. They also showed the sixth-generation Sky Spear air-to-air missile.

Elbit Systems announced the Romanian Ministry of Defense’s first purchase for the Watchkeeper X tactical UAV at the salon, totaling $180 million from a $410 million framework deal.

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About the Author: Sanjh Vishwakarma

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