Israel has been at war for over eight months but continues to sell weapons worldwide at unprecedented levels, particularly air defense systems, with the Defense Ministry reporting on Monday that Israel set an all-time record in defense exports for the third consecutive year, surpassing $13 billion in 2023 (approximately 49 billion shekels) and doubling within five years.
According to the 2023 defense export report, there was a significant increase in air defense system sales, accounting for 36% of transactions, up from 19% in 2022. Other categories included radar and electronic warfare systems (11%), firearms and launchers (11%), manned aircraft and avionics (9%), ammunition and weaponry (8%), observation and optronics (5%), vehicles and armored vehicles (5%), intelligence, information, and cyber systems (4%), drones and UAVs (4%, down from 25% in 2022), communication systems (4%), satellites and space systems (2%) and maritime platforms and systems (1%).
Most deals were made with countries in Asia and the Pacific (48%, up from 30% in 2022) and Europe (35%, up from 29% in 2022). Deals with North American countries accounted for 9% (down from 11% in 2022), Latin America 4% (up from 3% in 2022), and Africa 1% (down from 3% in 2022). The most significant decline was in sales to Arab countries that are part of the Abraham Accords (UAE, Bahrain, Morocco and Sudan), which accounted for only 3% in 2023, down from 24% in 2022.
Additionally, the report indicated that 40% of the deals exceeded $100 million, 20% were up to $10 million, 23% were up to $50 million and 17% were between $50 million and $100 million.
"Even in a year where Israel is fighting on seven different fronts, our defense exports continue to break records," said Defense Minister Yoav Gallant. "This is a testament, first and foremost, to our defense industries and the creative and talented minds driving them to new heights of groundbreaking innovation.
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Israeli air defenses are in high demand; an Iron Dome battery in action
(Photo: IDF Spokesperson's Unit)
"The data for this year show that while our defense industries are primarily focused on supporting the war effort, they continue to secure significant export deals, thereby enabling the Defense Ministry's efforts to increase defense exports and open new markets."
The Defense Ministry added, "This year, our defense industries signed hundreds of significant contracts worldwide, including mega-deals worth hundreds of millions of dollars each. Since the outbreak of Operation Swords of Iron on October 7, the Defense Ministry and the defense industries shifted to an emergency footing, fully committing to the war effort and producing around the clock for the IDF, while continuing production for foreign clients. Despite the war, 2023 ended with a new record and was marked by significant export deals."