A fresh front has opened in the long-running rivalry between Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems, two of Israel's top defense contractors, as tensions mount over the attempted hiring of a senior IAI executive by Rafael.
At the center of the dispute is Adi Dolberg, a senior vice president and head of the Intelligence, Communications and Electronic Warfare Division at ELTA Systems, an IAI subsidiary. Dolberg is reportedly on the verge of leaving ELTA to take on the same role at Rafael, prompting sharp objections from IAI leadership.
According to sources familiar with the matter, IAI is attempting to block the move “at all costs,” accusing Rafael and its CEO, Yoav Turgeman, of undermining inter-agency cooperation. Turgeman himself previously served as CEO of ELTA until early 2024, when he moved directly to head Rafael — a transition that, at the time, sparked concern within IAI.
IAI officials now view Dolberg’s departure as part of a broader effort by Rafael to acquire institutional knowledge from its main state-owned competitor. "This is not just uncollegial — especially between two government-owned firms tasked with national defense — it’s a strategic threat," a senior industry figure told ynet's sister publication Calcalist. "Turgeman knows ELTA inside and out, and understands the implications of this move.”
Turgeman, who spent five years as ELTA CEO and previously held top roles at IAI, including leading its Arrow missile defense program, joined Rafael shortly after the outbreak of the October 7 war, without any cooling-off period. His transfer sparked fears at IAI that Rafael could launch competing programs in key markets, leveraging insider knowledge.
One area of particular tension is the space sector, where Rafael has recently expanded its development of reconnaissance satellite concepts, directly challenging IAI’s longstanding dominance in the field.
Adding to the friction is a reportedly strained relationship between IAI CEO Boaz Levy and Turgeman, who previously vied for the top job at IAI and lost to Levy.
To allay concerns at the time of his move, Turgeman signed an agreement barring him from involvement in ELTA’s core activities. IAI officials had hoped that this self-imposed restriction would last beyond one year — but with nearly two years passed, Dolberg’s pending move has revived old fears.
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Rafael CEO Yoav Turgeman, Israel Aerospace Industries CEO Boaz Levy
(Photo: Gil Nechushtan, Orel Cohen)
“The nightmare scenario is now playing out,” said a senior official involved in the matter. “A senior VP is going to the competitor, taking on the same role, and no one is stepping in. Where is the Government Companies Authority?”
Dolberg, who has held his post at ELTA for about seven years, is stepping down due to civil service term limits. Still, IAI did not view this as an end to his career within the group and reportedly offered to extend his term by three years or appoint him to another senior role.
His departure coincides with Rafael’s months-long search to replace Yuvall Miller, who recently left the role of VP and head of the intelligence division to become CEO of Controp, a Rafael subsidiary specializing in electro-optical defense systems.
Still, some in the defense industry have come to Dolberg’s defense. “He’s ending a long tenure at ELTA, and his expertise is highly specialized,” one senior industry figure told Calcalist. “He’s not going to retrain as a pediatrician in a few months. If he doesn’t move to Rafael, he’ll end up at Elbit or some private company anyway.”
In the meantime, the escalating tension between IAI and Rafael has reached the desk of Government Companies Authority Director Roi Kahlon. “Someone needs to bring order to this and prevent a scenario where each company poaches top talent from the other,” said another defense industry executive.
Calcalist has learned that the Government Companies Authority plans to monitor the hiring process and assess its broader implications once the nomination comes before Rafael’s board of directors for approval.
Rafael has experienced significant growth in recent years, especially since the start of the October 7 war. The company has seen a sharp rise in recruitment alongside an unprecedented wave of orders. It recently reported a record backlog of $22.5 billion, approaching the $25.2 billion backlog held by Elbit Systems, controlled by businessman Miky Federmann. IAI, for its part, reported a backlog of $26.5 billion at the end of Q3 2025 — a figure likely to rise further following last week’s $3.1 billion Arrow missile deal with Germany.
In response to the controversy, Rafael said, “The company established a professional search committee for the role, and numerous candidates have applied. The committee has not yet concluded its work. We regret that some parties are spreading irresponsible claims about professional processes that are still underway.”
Israel Aerospace Industries declined to comment.