TEL AVIV — Israel, setting a new record, has reported more than
$4.4 billion in defense exports in 2006.
The Defense Ministry said Israel has become one of the top five
defense exporters in the world, behind only the United States, Russia and Britain. Officials said Israeli foreign military sales exceeded $4.4
billion in 2006.
"The Israel defense industry has reached a new record, with an orders
backlog based on contracts signed throughout the world that amount to more
than $4.4 billion," the ministry said in a statement on Dec. 31.
Israel's previous defense export record was in 2002, Middle East Newsline reported. At the time, Israel
reported $4 billion in arms and security exports.
"This is a great achievement," Yossi Ben-Hanan, head of the ministry's
Sibat arms export agency, said. "The world has put its faith in our
industries through the deals signed with Israeli companies."
In an interview to the Jerusalem Post, Ben-Hanan said 75 percent of
Israeli defense production in 2006 was exported to foreign clients. He said
the rest was sold to the Israeli military.
India was identified as Israel's largest military client. Ben-Hanan said
Israel ordered $1.5 billion in defense products last year.
The United States bought $1 billion in defense products in 2006. In
1999, Ben-Hanan said, Israeli defense exports to the United States reached
$300 million.
Israel has also developed a market in Europe. Officials said Israel
signed $800 million in defense contracts with Europe in 2006 and expected an
increase over the next two years.
On Tuesday, the Institute for National Security Studies said the war in
Lebanon has bolstered foreign interest in Israeli weapons. The institute
predicted sales of the Trophy main battle tank active protection system,
developed by the state-owned Rafael Israel Armament Development Authority
and offered to Israel and the United States.
"The lessons of the war in Lebanon brought a renewed interest in unique
Israeli weapon systems," the report said. "There are thus much better
prospects for future sales of armor protection system like Rafael's Trophy,
which was previously rejected both by the Israel Defense Forces and the U.S.
military. Also there is a renewed interest in anti-rocket systems like the
Nautilus designed to defend against short range rockets and missiles."
