Israel Shipyards and Rafael Near $165 Million Cyprus Defense Deal
Translated & summarized from Bizportal by baba
Israel Shipyards and Rafael are close to signing a 150 million euro defense deal with Cyprus for naval vessels equipped with Israeli weapon systems. The agreement, facilitated by the Israeli Ministry of Defense, is expected to be finalized in the coming weeks. This follows another recent 80 million euro contract for Israel Shipyards with an undisclosed foreign client. The deal underscores growing defense ties between Israel and Cyprus, with Israel Shipyards reporting a significant increase in revenues and a large order backlog.
The story in 6 lines · by baba
- Israel Shipyards and Rafael are nearing a 150 million euro defense deal with Cyprus.
- The agreement includes naval vessels equipped with Rafael's weapon systems for the Cypriot Navy.
- The deal is an intergovernmental (G2G) transaction facilitated by the Israeli Ministry of Defense.
- This follows a recent 80 million euro contract for Israel Shipyards with an undisclosed foreign client.
- Cyprus has previously purchased vessels from Israel Shipyards, collaborating with Rafael.
- The deal reflects expanding defense cooperation between Israel, Cyprus, and Greece.
Israel Shipyards and Rafael are nearing the finalization of a significant defense agreement with Cyprus, valued at approximately 150 million euros (about $165 million). The deal, which is expected to be signed in the coming weeks, involves the supply of naval vessels equipped with Rafael's advanced weapon systems to the Cypriot Navy. This intergovernmental (G2G) transaction is being facilitated by the Israeli Ministry of Defense in coordination with its Cypriot counterpart.
Under the agreement, Israel Shipyards will be responsible for constructing and delivering the vessels, while Rafael will provide the integrated weapon systems. While the total value has been established, the specific breakdown of the revenue between the two Israeli companies and the exact number and delivery timeline of the vessels remain undisclosed.
This potential deal follows closely on the heels of another major contract for Israel Shipyards, announced just a week prior. This earlier agreement, worth around 80 million euros, is with an undisclosed foreign government client and includes the delivery of new vessels alongside upgrades and support for existing ones. The earlier contract also includes an option for additional work, potentially increasing its total value to 93 million euros, with execution expected over approximately 30 months.
Cyprus is not a new client for Israel Shipyards, which previously supplied a 62-meter patrol boat equipped with Rafael's Typhoon naval weapon stations to the Cypriot Navy in 2017. The two companies have also collaborated on defense projects in other nations, including Azerbaijan and the Philippines. This latest agreement aligns with the broader trend of expanding defense cooperation between Israel, Cyprus, and Greece, particularly in maritime and air defense capabilities.
Israel Shipyards has seen a significant expansion in its defense operations, driven by contracts with the Israeli Ministry of Defense and international exports. The company recently secured a 2.4 billion shekel (approximately $650 million) contract to build five advanced Reshef-class combat vessels for the Israeli Navy, with work scheduled over six years. The company's financial reports reflect this growth, with revenues in the second quarter of 2026 reaching 428.5 million shekels, a 22% increase year-over-year, and a substantial backlog of orders exceeding 2.5 billion shekels as of June.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 5
Not the same event — other stories that share this one’s people, places, or theme: background, reactions, and follow-ups.
