Israeli Defense Firms Boost Global Sales Despite International Restrictions

Roee Kahlon, Director of the Government Companies Authority, stated at the annual Accountants Association conference in Eilat that Israeli defense companies are significantly increasing their global sales, reaching $10 billion this year, up from $3 billion previously. This growth persists despite international efforts, particularly in France, to limit Israeli firms' participation in global defense exhibitions. Kahlon described these restrictions as primarily public relations moves that have failed, emphasizing that the world recognizes the high quality of Israeli defense products.

He highlighted that companies like Israel Aerospace Industries, Rafael, Tomer, and Elbit Systems continue to showcase their capabilities worldwide. Even when specific systems such as the Arrow missile are excluded from exhibitions, the success of systems like Arrow and Iron Dome is well known internationally. Kahlon noted that Israeli defense systems are tested in real combat conditions alongside the IDF, providing proven performance that attracts global buyers seeking effective protection for their citizens.

Regarding the privatization of government companies, Kahlon argued that private management is more effective at handling risks and generating returns. He cited past privatizations of major Israeli companies like Bezeq, El Al, and Haifa Port as beneficial to the Israeli economy, while acknowledging that some privatizations have faced justified criticism and should be evaluated individually. Comparing Israeli attitudes toward privatization with those in the United States, Kahlon observed that Americans often view major private companies as part of national strength, whereas in Israel, privatizing national assets can be controversial. He called for a change in this perception to support further privatization efforts expected to advance this year.