Israel’s defense exports have reached a new record in 2021, amounting to $11.3 billion, and the number of new agreements signed increased by more than 30% compared to 2020.
The rate of export agreements between countries (GTG) signed by the Ministry of Defense has more than tripled to $3.365 billion in 2021, compared to $911 million in 2020.
The Ministry of Defense defined security exports as one of its central focuses, and the cooperation between the Ministry of Defense and the defense industries is reflected in the sharp increase of new agreements signed for the second year in a row.
All cooperation is conducted in accordance with the Ministry of Defense’s Defense Export Controls Agency (DECA) regulations and the relevant international conventions.
Missiles, rockets, and air defense systems consisted of 20% of the sales, followed by training and training services at 15%, UAV and drone systems at 9%, radar and Electronic Warfare (EW) at 9%, manned aircraft and avionics at 9%, observation and optronics at 5%, weapon stations and launchers at 7%, vehicles and APCs at 7%, teleprocessing (C4I) and communication systems at 6%, intelligence, information, and cyber systems at 4%, ammunition and armament at 4%, and other services at 2%.
European countries were the largest clients with 41% of the sales, followed by Asia and the Pacific with 34% of the sales, North America with 12%, Arab countries who signed the Abraham Accords countries at 7%, Africa at 3%, and Latin America with 3%.
About 38% of the agreements were above $100 million, about 18% were between $50-100 million, 22% were between $10-15 million, and 22% were up to $10 million.
Minister of Defense Benny Gantz stated that the Ministry of Defense “cooperates with partners around the world and has expanded its market by strengthening ties within the region as well as building new ties with countries around the world.”
“Security relations are an integral component of Israel’s political relations and our ability to cooperate with other countries, and we work to strengthen those ties and create new security partnerships. The peak in defense agreements in 2021 is first and foremost a means of strengthening the security of the State of Israel,” he added.
Yair Kraus, head of the International Defense Cooperation Directorate (SIBAT) stated that “today, the Ministry of Defense and the security industries mark a historic milestone. Israel’s defense exports have reached double-digit figures for the first time, reaching a 55% increase within two years. This is despite fierce competition as well as concerns regarding the effects of COVID-19 on defense budgets around the world.”
“Demand for Israeli defense products has risen in the past year, manifesting in the sharp increase in transactions between countries. Looking ahead, shifting global priorities and partnerships such as the Abraham Accords create high demand for Israel’s cutting-edge technological systems. The Ministry of Defense is working together with the security industries to ensure the continuing increase in defense cooperation,” he said.