Defense exports hit an all-time record last year, as signed contracts
for defense industry deals with foreign armies reached $4.18 billion,
a nearly 70 percent rise compared to 2001, when overseas weapons
sales totaled $2.5 billion.
The main customers of Israeli weapons systems and military know-how
are the United States, followed by India and several southeast Asian
countries. European and Latin American countries are also on the
list, while military exports to African countries total only tens of
millions of dollars.
The ministry also keeps a lid on the identity of the countries
acquiring weapons systems, largely because of fear of competition
between the Israeli firms and their foreign competitors. But the
ministry is also worried about political pressure applied to customer
states to dissuade them from purchasing Israeli security equipment
and know-how. One example was the American administration's pressure
on the UK not to purchase Spike anti-tank missiles made by Rafael.
The British acquired Javelin missiles from the American Lockheed
Martin.
The ministry says the world's leading arms exporters are the United
States, EU, Russia and Japan, followed by Israel. Israel's greatest
achievement is that while other countries manufacture and sell
military platforms - i.e. tanks, planes, ships - Israel's specialty
is electronic systems and high-tech military equipment. Only about
40,000 people are employed by the local industry, far fewer than the
number of workers in military industries in the U.S. and Europe.
According to "Defense News" whose figures differ somewhat from those
made available by Israel's Ministry of Defene 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" noted that Israeli officials do not comment on the
country's arms exports.
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, East Asian, Eastern European and Latin American countries.
The US 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