Israel breaks arms sales record for 3rd consecutive year

For the third year in a row, Israeli arms sales set a new annual high in 2023, virtually doubling the value of exports from the previous five years.

The International Defense Cooperation Directorate, or SIBAT, of the Israeli Defense Ministry revealed numbers on Monday indicating that defense exports reached $13 billion in 2022, surpassing the previous record high of $12.5 billion in 2022. That amount varied from $7.5 billion to $8.5 billion in 2018 and 2020.

Following the start of hostilities on October 7, the Defense Ministry declared that it had gone into “emergency mode.” Defense contractors were called upon to contribute to the war effort by producing weapons and equipment for the Israel Defense Forces around-the-clock in addition to fulfilling orders from overseas customers.

“Despite the war, 2023 amounted to a new record and was characterized by significant export deals,” the ministry said.

The biggest portion of exports, comprising 36% of air defense systems, increased from 19% in 2022. This was mostly brought about by Israel selling Germany the Arrow 3 anti-ballistic missile system for €4 billion.

Eleven percent of arms sales went toward the export of radar and EW systems, and an additional eleven percent went toward the selling of rocket launchers.

Despite its reputation, cyber-intelligence systems in Israel accounted for just 4% of total sales in 2023. Authorities refrained from naming the nations to whom they were sold. The use of these technologies by some nations to spy on journalists and political dissidents has allegedly led to increased scrutiny of Israeli sales of them in recent years.

The majority of the remaining items were made up of manned aircraft, unmanned aerial vehicles and drones, avionics, observation and communication systems, vehicles, marine systems, ammunition, and services.

With 48% of all exports, the Asia-Pacific area was the biggest buyer of Israeli defense equipment, followed by Europe with 35%.

Africa made up 1%, Latin America made up 3%, and North America made up 9%.

After normalizing relations with Israel in 2020 under the terms of the Abraham Accords, the United Arab Emirates, Bahrain, and Morocco accounted for just 3% of the armament sales, down from 24% in 2022.

“Even in a year in which the State of Israel is fighting against seven different arenas, the defense exports of the State of Israel succeed in continuing to break records. This fact is a certificate of honor, first and foremost, for our defense industries and the creative and talented minds that work in them and drive them to the heights of breakthrough innovation,” said Defense Minister Yoav Gallant in remarks provided by the ministry.

“This year’s figures show that even though our defense industries are committed… to the war effort, they continue to sign more and more significant export deals, thus enabling the realization of the effort led by the Defense Ministry to increase defense exports while opening them to new markets,” he added.