Despite International Controversy, Israeli Defense Industry Had Record Setting Year in 2023

Israeli defense companies signed a record $13 billion in defense exports in 2023, marking the highest total in the country’s history, even as international criticism builds against the Israeli defense industry.

Israeli defense companies signed new export orders worth a record $13.073 billion last year, the Ministry of Defense International Defense Cooperation Directorate (SIBAT) reported on Monday. This is the third consecutive year in which the record has been broken, with new orders worth $12.5 billion in 2022 and $11.3 billion in 2021.

Increasing interest in Israel’s air defense systems included the historic $3.5 billion sale of Israel Aerospace System’s (IAI) Arrow 3 to Germany and the sale of Rafael’s David’s Sling to Finland for $317 million. SIBAT’s figures showed that 36 percent of the exports in 2023 was in air defense systems, compared with 19 percent in 2022.

“Even in a year when the State of Israel is fighting in seven different arenas, the defense exports of the State of Israel have succeeded in continuing to break records,” said Defense Minister Yoav Gallant. “This fact is a badge of honor, first and foremost, for our defense industries and the creative and talented minds that work in them and drive them to heights of breakthrough and innovation. This year’s figures show that even though our defense industries are harnessed in their order of priority for the success of the war effort, they continue to sign more and more significant export deals.”

The report was published just a day before a French court struck down severe restrictions requested by the French Defense Ministry on Israeli companies at the Eurosatory 2024 defense show, one of the largest events in the industry. The Paris Commercial Court found that the order would lead to discrimination — a criminal offense in France