ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the March 2003 issue


Israel Ranked as World's Third Largest Weapons Exporter

According to "Defense News" Israeli weapons exports reached a record $3.7 billion in 2002, nearly 40% higher than the $2.6 billion exported in 2001. Israel's orders backlog for weapons and defense equipment in 2002 was equal to Russia's in 2001. For the first time, Israel's arms exports in 2002 put it in third place, after the US and Russia.

"Defense News" also noted that Israeli officials do not comment on the country's arms exports achievements.

It also noted that the Ministry of Defense does not publish figures about arms exports for two reasons: US pressure against arms sales to China and other countries that the US perceives as potentially hostile; and threats by European countries to impose embargoes and commercial sanctions on Israel, due to their criticism of Israels military responses to Palestinian terror activities.

Ministry of Defense spokesperson Rachel Neidak-Ashkenaz did say that the new orders (for defense goods) exceeded $3 billion in 2002, which is considerably higher than in previous years.

Analysts suggest that the increase in defense exports was mostly due to the Turkish Army deal to upgrade 170 M-60 tanks for $668 million. The deal was closed late last year. Other large-scale deals in 2002 were sales of unmanned aerial vehicles (UAVs), ground radars, missiles, communications equipment and electronic counter-measures to India and East Asian, Eastern European and Latin American countries.

The US, the world's largest arms exporter, had $12.1 billion in new orders for arms and defense equipment in 2001. The UK was in second place, with $6.1 billion; Russia in third, with $3.7 billion; Germany in fourth, with $3.2 billion; followed by France - $2.9 billion; Israel - $2.6 billion; and Italy - $764.6 million.

If the new contracts signed in 2002 indeed reached $3.5 billion or more. it places Israel in third place, behind the US and Russia in terms of signed contracts, in contrast to actual deliveries according to the International Institute for Strategic Studies.



Reprinted from the Israel High-Tech & Investment Report March 2003

Click HERE to request further information.
Click HERE to go BACK.