Secret Elbit deal with foreign state among the largest in company’s history

The contract is worth around $2.3 billion and was signed with the full involvement of Israel’s Defense Ministry, according to the report.

By JNS

Israeli weapons technology firm Elbit Systems recently signed one of the largest deals in its history with a foreign state whose identity may not be made public, Hebrew media reported on Monday.

The deal involves a “strategic defense system” based on “groundbreaking” technology, and is planned to span about a decade, according to Calcalist.

The contract is worth around $2.3 billion and was signed with the full involvement of Israel’s Defense Ministry, according to the report.

Shortly after the deal was cemented in November, Elbit submitted a “vague” notice to Israel’s stock exchange, characterizing the contract as “a strategic solution with an international customer,” the report continued.

The secrecy of the deal was reportedly a condition stipulated by the foreign state, with any disclosure of its details leading to its nullification.

The Hebrew publication noted that the company’s latest deal is a feature of Israel’s new budgeting strategy, which encourages weapons sales with other countries as a financing solution for its own arms industry—instead of using funds from the treasury.

The Jewish state intends to significantly expand in the coming years the volume of defense transactions conducted through intergovernmental agreements, with 21 arms deals forged in the past year on the basis of this model, according to Calcalist.