The monetary value of Israeli defense exports from Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI) surged by 25 percent last year, with total defense exports projected to reach $18 billion for 2025, marking a 20 percent increase from the previous year. This expansion of capital accumulation is directly facilitated by a significant increase in air-defense export licenses issued by the Israeli state.
The Defense Ministry's Defense Export Control Agency granted Israeli companies air defense export licenses for 20 countries last year, a sharp rise from seven countries two years ago and 12 countries three years ago. Marketing permits, which allow companies to present systems or invite clients for demonstrations, also climbed to 74 last year, up from 56 two years ago and 19 three years ago. This surge in approvals stems from both an increase in applications and a deliberate shift in Defense Ministry policy.
Capital's Gain
The United Arab Emirates has emerged as a primary recipient of these systems, acquiring Iron Beam from Rafael Advanced Defense Systems and the Spectro drone detection system from Elbit Systems. Germany has also expanded its acquisition of the long-range Arrow system, manufactured by Israel Aerospace Industries. Other nations, including Slovakia, Cyprus, Azerbaijan, and Morocco, have purchased IAI's Barak air defense system. The expansion of these sales reflects the "economic needs of the companies making the systems," as noted by human rights lawyer Eitay Mack. This drive for profit has led to approximately 70 percent of Israel's defense production being directed toward exports.
The increase in air defense exports stands in contrast to other arms industry sectors, such as drones, training, ammunition, intelligence, and cyber capabilities, which have not seen similar rises in license issuance. Drones, for instance, experienced only a 6 percent rise in marketing permits granted, with no increase in export licenses. This stagnation in other defense sectors might reflect global boycott attempts, according to the base article, amid the large number of Palestinian civilians killed by Israel in its war on Hamas in Gaza. The acquisition of Israeli air defense systems is perceived as less problematic by buyers.
The State as Facilitator
The Defense Ministry's policy, described as "more lenient" on such sales, is part of a reform led by the ministry's director general, Amir Baram. A committee addressing this issue submitted recommendations at the end of last year, expected to further bolster this trend of increased exports. Further evidence of eased export conditions is reflected in data obtained by the Movement for Freedom of Information, which shows that out of 6,648 applications for defense export licenses for products and knowledge, only 19 applications were denied by the Defense Ministry.
Hiddai Negev, executive director of the Movement for Freedom of Information, stated that the committee approving defense exports "operates in the dark and doesn't publish a public report." Negev further criticized the process, saying, "The dismal figure shows that the committee functions as a rubber stamp, approving over 99 percent of defense export applications. This figure shows that there is no real oversight or control over the defense technologies that Israel exports to problematic regions around the world." The small number of licenses suspended or canceled also highlights this leniency, with only 99 export approvals canceled last year, compared with 174 two years ago.
Domestic Needs Sacrificed
Prime Minister Benjamin Netanyahu's public contentions that Israel needs to be a "Super Sparta" and provide for all its defense needs itself are contradicted by the state's actual policy. Netanyahu spoke of an additional 350 billion shekels, or $120 billion, in Israeli arms production in the coming decade for domestic needs. However, attorney Eitay Mack countered this, stating, "In practice, the trend in the data is that for economic and political reasons, the bulk of Israeli defense production is directed toward exports." Mack added, "We could find ourselves in a situation similar to that of the Americans, where we have full arms independence but face shortages due to massive arms exports." This reveals a structural contradiction where the pursuit of export profits for private capital potentially undermines the stated defense needs of the population.