Israel Celebrates Historic Milestone as Defence Exports Exceeds $12.5 Billion in 2022, Sets New Record

By Arie Egozi

Defence Industry

Tel Aviv: Israeli defence exports have doubled in less than a decade and increased by 50% in 3 years. Around one quarter of the agreements signed in 2022 were of UAVs and drones.

Minister of Defence, Yoav Gallant said, “The remarkable data unveiled by the Israeli defence establishment, reaching new heights in defence exports, showcases the State of Israel’s strength and excellent technological capabilities. Through the creativity and innovation of both the Israeli defence establishment and the Ministry of Defence, we not only outpace our adversaries but also sustain our qualitative edge.”

Director General of the Israel Ministry of Defence, Maj Gen (Res) Eyal Zamir and Director of the IMOD International Defence Cooperation Directorate (SIBAT), Brig Gen (Res) Yair Kulas, announced a record $12.546 billion in Israeli defence exports for the year of 2022.

Israel has once again reached an all-time peak in defence exports in 2022, marking the second consecutive record-breaking year in the scope of defence agreements. Around 120 Israeli defence industries signed hundreds of significant defence contracts around the world with the help and support of the Israel Ministry of Defence, including mega-deals amounting to hundreds of millions of dollars.

In recent years, the Israel Ministry of Defence has defined the field of defence exports as a central priority. The Ministry of Defence led a national effort to expand defence exports to new markets, reduce regulations and remove bureaucratic barriers. In addition, the ministry has made intensive international efforts focusing on strengthening strategic ties and government-to-government export agreements (GTG). The cooperation between the Ministry and the Israeli defence industries is manifested in a sharp increase in the scope of new contracts for the third year in a row in accordance with Defence Export Control Agency (DECA) regulations and international conventions.

Record was set in the export of UAVs and drones and exports between countries increased ten-fold, with half of the agreements valued at over $100 million. Exports to Abraham Accords countries reached approximately $3 billion.

Significant tiers of defence exports in 2022: UAV and drone systems (25%), missiles, rockets, and air defence systems (19%), radar and EW (13%), manned aircrafts and avionics (5%), observation and optronics (10%), weapon stations and launchers (5%), vehicles and APCs (5%), C4I and communication systems (6%), intelligence, information and cyber systems (6%), ammunition and armament (4%), maritime systems (1%), services and other (1%).

Defence export data by geographic distribution: Asia and the Pacific Region – 30%, Europe – 29%, North America – 11%, Abraham Accords countries – 24%, Africa – 3%, Latin America – 3%.

The rate of export agreements between countries (GTG), signed by the Ministry of Defence has reached an all-time high, over $4 billion compared to $412 million in 2018. This constitutes a 10-fold increase in 5 years.

Distribution of agreements by financial scope: Agreements over $100 million (48%), agreements between $50-100 million (12%), agreements up to $10 million (20%).

Director General of the Israel Ministry of Defence, Maj Gen (Res) Eyal Zamir commented, “The strategic partnership between the Israel Ministry of Defence, the IDF, and the Israeli defence industries combines technology, operational experience, and global strategic ties, and has once again been proven to be a game-changer. Global instability increases the demand for Israeli air defence systems, drones, UAVs, and missiles, and we continually work to preserve our capabilities and strengthen them.”

Director of SIBAT, Brig Gen (Res) Yair Kulas remarked, “Today, the Ministry of Defence and Israeli defence industries celebrate a historic milestone. Israel’s defence exports have reached a new peak for the second consecutive time, a remarkable 65% increase within five years. This success is primarily thanks to the technology developed by Israeli defence industries. Demand for Israeli defence solutions has grown in the past year, manifesting in the sharp increase in agreements between defence ministries (GTG). Looking ahead, the geostrategic changes in Europe and Asia in addition to the Abraham Accords generate a high demand for Israel’s cutting-edge systems. The Ministry of Defence is actively collaborating with Israeli defence industries to continually increase the scope of defence exports.”