Israel’s three defense giants lead the world in the arms industry

International arms transfers are doing very well in the Middle East, even though they are “stabilizing” in other regions, according to the Stockholm International Peace Research Institute, a group that monitors arms transfers. SIPRI claims that its Arms Transfer Database is the only public resource that provides consistent information, usually estimates, on all major international arms transfers. “International transfers of important weapons remained at the same level between 2011–15 and 2016–20. Substantial increases in transfers from three of the top five arms exporters – the USA, France and Germany – have been largely offset by the drop in arms exports from Russia and China, ”the group said on Monday. Arms imports from the Middle East increased by 25%. Saudi Arabia, Qatar and Egypt have been leaders for the past four years, with Doha increasing its purchases by 361%. Israeli exports accounted for 3% of the global total between 2016 and 2020. Israel’s three major defense giants, Elbit Systems, IAI and Rafael Advanced Defense Systems, are world leaders in the industry. Israel’s exports have been 59% higher in the last five years than in the period 2011-2015. This is great news for the defense giants. For example, Israel’s IAI is profiting from a new interest in wandering ammunition. Elbit Systems is closing deals in Europe and the Iron Dome and Rafael’s Trophy are receiving new recognition. The Iron Dome was shipped to the USA and the Trophy is now being used by Germany. Both systems celebrate ten years of operation in Israel this year. In addition, Israeli companies have made major inroads in India and other countries. SIPRI claims that “Israel accounted for 69% of arms imports from Azerbaijan” in the most recent period. Azerbaijan recently fought a war with Armenia. Israeli documentary maker and program Uvda Itai Anghel shows how Israeli drones played an important and controversial role in this conflict. The Jewish state exported hundreds of drones to Azerbaijan, along with other defense systems, according to reports.

“It is too early to say whether the period of rapid growth in arms transfers over the past two decades is over,” said Pieter D. Wezeman, senior researcher at SIPRI’s Military Expenditure and Arms Program. Among Western powers, exports increased while exports from Russia and China fell. Exports from China, the world’s fifth largest arms exporter in 2016-2020, decreased by 7.8% between 2011-15 and 2016-20, the report notes. The Middle East is where all the weapons appear to be The United Arab Emirates is looking for 50 fifth-generation F-35 aircraft, according to the report. “Egypt’s arms imports increased by 136% between 2011-15 and 2016-2020. Egypt, which is involved in disputes with Turkey over hydrocarbon resources in the eastern Mediterranean, has invested heavily in its naval forces,” he noted. Turkish arms imports fell 59% between 2011-15 and 2016-20. This is great news because Turkey is now rapidly building internal capacity to build drones and other weapons. Iran and the region, wars going on in Syria, Libya, Yemen and elsewhere, and because many countries here are pioneering new weapon systems like drones, meaning that others need better air defenses. Israel and the UAE Edge recently signed an MOU on combating UAV threats, Iran used drones to attack Saudi Arabia in 2019, and Iran-backed groups in Yemen, called Houthis, use drones and missiles weekly against Saudi Arabia. Israel is also building its navy with new Sa’ar 6 ships, and it appears that all other navies in the region are also augmenting their systems. The Middle East, long a testing ground for US and Soviet weapons, is now producing its own weapons and buying weapons from new suppliers. U.S. fifth-generation planes, like the F-35, are in high demand, as are Russia’s S-400 and Israeli systems like the Iron Dome.