ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the January 2007 issue


2006 to be record year for defense exports

2006 is set to be a record year for Israeli defense exports. Early estimates, point to an order backlog of $4.1 billion at the end of November. $500 million should be added to this figure on the basis of expected new contracts. These include the sale of 2,600 Spike-ER extended range multi-purpose missiles, made by Rafael Armament Development Authority Ltd., to the Spanish Army for $428 million

The previous orders backlog record was set in 2002: $4.02 billion.

"Defense News" reports that the orders backlog of Israeli defense contractor's account for 10% of total global arms sales in 2006. Israel is the world's fourth largest arms exporter in the world, after the US, Russia, and France.

Last year, US companies signed contracts for the sale of arms worth $12.75 billion, Russian companies signed contracts worth $7.9 billion, and French company signed contracts worth $7.4 billion.

"Defense News" says Israel Aircraft Industries Ltd. (IAI) will have signed contracts worth $2.7 billion at the end of 2006; Rafael will have contracts worth $1.1 billion, up from $830 million at the end of 2005, and is in advanced negotiations for a $400 million deal.



Reprinted from the Israel High-Tech & Investment Report January 2007

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