Israel defense exports rise 14% in 2016
According to an Israeli Ministry of Defense report, sales of Israeli-made defense hardware are rising due to the end of a recession and an increase in global defense budgets in light of security threats.
In 2015, Israeli defense giants including Elbit Systems or Rafael Advanced Defense Systems exported $5.6 billion of military hardware.
For example, Elbit Systems, an international defense electronics company, said that export sales constituted approximately 78% of the company’s sales in 2016, while approximately 45% of Rafael Advanced Defense Systems are intended for export.
During the year, the defense industries, with the assistance of Defense Ministry entities, signed dozens of significant contracts, which led to Israel’s advances in the global defense market.
“The increase in new contracts reflects the global economic trend emerging from the recession, especially in Europe and North America, and an increase in the defense budgets in light of the growing security challenges,” said Brig. Gen. (res.) Michael Ben-Baruch of the Ministry of Defense.
The breakdown of defense exports in 2016 include: aircraft and aerial systems improvements (20%), observation and optronics (18%), missile and air defense systems (15%), landmines and weapons’ stations (13%), Intelligence and information systems (8%), Unmanned Aerial Vehicles (UAV) (7%), telecommunication systems (4%), maritime systems (1%) and miscellaneous (12%).
Geographically, Asia and the Pacific imported $2.6 billion, Europe $1.7, North America received $1.2, Latin America $550 million and Africa $275 million. The improvement in Asian sales is primarily a consequence of a rapprochement between Israel and India, which concluded major arms deal and joint ventures in 2015.
Article reprinted with the permission of TPS.
