A record $12.546 billion in Israeli defense exports for the year of 2022 were announced Wednesday. Numbers have doubled in less than a decade and increased by 50% in three years. Around one-quarter of the agreements signed in 2022 included UAVs and drones.
The data was presented at a defense industry conference, led by the Minister of Defense Yoav Gallant, held at the Ministry of Defense HQ in Tel Aviv today.
This marks the second consecutive record-breaking year in the scope of defense agreements. Around 120 Israeli defense industries signed hundreds of significant defense contracts around the world with the help and support of the Israel Ministry of Defense, including mega-deals amounting to hundreds of millions of dollars.
Goals met
In recent years, the Israel Ministry of Defense has defined the field of defense exports as a central priority. The Ministry of Defense led a national effort to expand defense 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 defense industries is manifested in a sharp increase in the scope of new contracts for the third year in a row in accordance with Defense Export Control Agency (DECA) regulations and international conventions.
Records have been set in the export of UAVs and drones, exports between countries increased ten-fold, with half of the agreements valued at over $100 million, and exports to Abraham Accords countries reached approximately $3 billion:
- Significant tiers of defense exports in 2022: UAV and drone systems (25%), missiles, rockets, and air defense 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%).
- Defense 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 Defense 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%), and agreements up to $10 million (20%).
Creativity and innovation sustain our edge
Minister of Defense, Yoav Gallant: “The remarkable data unveiled by the Israeli defense establishment, reaching new heights in defense exports, showcases the State of Israel's strength and excellent technological capabilities. Through the creativity and innovation of both the Israeli defense establishment and the Ministry of Defense, we not only outpace our adversaries but also sustain our qualitative edge.”
Director General of the Israel Ministry of Defense, Maj. Gen. (res.) Eyal Zamir: “The strategic partnership between the Israel Ministry of Defense, the IDF, and the Israeli defense 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 defense systems, drones, UAVs, and missiles, and we continually work to preserve our capabilities and strengthen them.”
Director of SIBAT, Brig. Gen. (res.) Yair Kulas: “Today, the Ministry of Defense and Israeli defense industries celebrate a historic milestone. Israel’s defense 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 defense industries. Demand for Israeli defense solutions has grown in the past year, manifesting in the sharp increase in agreements between defense 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 Defense is actively collaborating with Israeli defense industries to continually increase the scope of defense exports.”