Israel sets new record in defense exports with $13 billion in sales in 2023

Israel is developing a multilayered aerial defense system that has drawn global attention.

By Pesach Benson, TPS

For the third consecutive year, Israel has set a new record in defense exports, reaching over $13 billion in 2023, the Ministry of Defense announced on Monday.

The $13.073 billion figure in sales represents a doubling of defense exports within five years.

“Israel continues succeeding in its international cooperation and industrial defense exports even during a year marked by war. This is a reflection of the capabilities and creativity of our industries and our people,” said Defense Minister Yoav Gallant.

“While our industries are primarily focused on providing the defense establishment with the capabilities to support our troops and defend our citizens, they are also continuing to pursue areas of cooperation and exports to international partners.”

This growth is largely attributed to missile, rocket, and air defense systems, which accounted for 36% of the total agreements in 2023, a substantial increase from 19% in 2022.

International demand for Israel’s military technology has surged as European countries increased their defense budgets in response to Russia’s war in Ukraine.

Israel is developing a multilayered aerial defense system that has drawn global attention.

The Arrow-3 system, which is designed to intercept ballistic missiles, had its first operational success when it shot down a ballistic missile fired by Iran-backed Houthi rebels in Yemen in November.

It is widely believed to be the first time a missile was intercepted in outer space, but Israeli officials have not confirmed this.

The David’s Sling system is designed to intercept medium-range threats at high altitudes and speeds such as ballistic and cruise missiles, aircraft and drones.

The sea-based C-Dome also scored its first operational success in April.

Financially, 40% of the agreements were valued over $100 million, 17% between $50-100 million, 23% up to $50 million, and 20% up to $10 million, according to the ministry.

“The remarkable achievements of the Israeli defense industries have doubled defense exports within five years. Nations worldwide are recognizing the success of Israeli defense systems, especially in air defense, appreciating their crucial role in safeguarding citizens. Since the onset of the war, the Ministry of Defense has invested tens of billions of dollars in domestic procurement,” said Maj. Gen. (res.) Eyal Zamir, the Defense Ministry’s Director General.

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Geographically, the largest markets for Israeli defense exports were Asia and the Pacific Region (48%), followed by Europe (35%), North America (9%), Latin America (4%), Abraham Accords countries (3%), and Africa (1%).