Israeli Defense Firms Expand Reach to Muslim Nations Amid Western Scrutiny

Israeli defense companies are actively pursuing new markets and strengthening existing ones, particularly in Muslim-majority countries, despite efforts by Western nations to curb their activities. This week marks a significant marketing milestone with Israeli firms participating in two prestigious defense exhibitions in Muslim nations. The ADEX exhibition in Baku, Azerbaijan, opened on Wednesday and runs until October 2nd. Shortly after, Israeli companies will make their debut at the Morocco Air Show in Marrakesh, held at a Royal Moroccan Air Force base.

Key Israeli defense contractors, including Elbit, Israel Aerospace Industries (IAI), and Rafael, are exhibiting in Azerbaijan, a notable customer that utilized Israeli military equipment in its victories during the 2020 Nagorno-Karabakh War and a subsequent conflict with Armenia in 2023. Following the Abraham Accords, Israel has signed numerous agreements with Morocco, and its presence at the Marrakesh Air Show signifies a deepening of defense ties. Elbit, IAI, Rafael, and others will also showcase their products in Morocco, highlighting offerings relevant to Rabat's defense needs, such as drone technology from XTEND and satellite systems from Orbit.

A significant development for Rafael involves its American subsidiary securing an agreement to qualify the Spike SR shoulder-launched missile for the U.S. Army. This qualification follows extensive testing, including live-fire exercises in 2021, where the U.S. Army expressed satisfaction with the 10kg missile's performance and 2km range. The Spike missile family offers a range of variants, from the lightweight SR to the longer-range NLOS (Tamuz) model, capable of striking targets up to 32km away from various platforms.

Meanwhile, Germany is poised to significantly increase its defense budget, positioning itself as a major client for Israeli defense industries. The Arrow 3 missile defense deal has already made Germany Israel's second-largest defense export destination. German Defense Minister Boris Pistorius is optimistic about a projected increase in the German defense budget to nearly 140 billion euros by 2027, including a substantial core budget increase and a dedicated military fund. Germany is also seeking to co-produce Patriot missile interceptors with the U.S., addressing demand challenges exacerbated by conflicts in Ukraine and the Middle East.