Australia and New Zealand Boost Defense Budgets, Opening Doors for Israeli Tech Firms
Amid rising concerns over China's aggressive maneuvers in the Pacific, Australia and New Zealand are significantly increasing their defense spending, creating new opportunities for Israeli defense technology startups. A special conference held in Haifa on August 4, 2026, organized by HiCenter Ventures and the New Zealand Israel Innovation Hub (NZIIH), highlighted the growing demand in these countries for affordable, smart, and rapid defense solutions.
New Zealand has allocated $7 billion to enhance its offensive capabilities, including new helicopters, anti-tank missiles, drones for maritime and aerial surveillance, and upgrades to existing bases. Australia, a formal military ally of New Zealand, raised its defense budget from 2.4% to 3% of GDP, totaling approximately $45 billion for the 2026-2027 fiscal year. This budget focuses on acquiring autonomous land and sea systems, drones to protect critical infrastructure, and establishing a secure satellite communication network.
Ilana Abarquin, head of defense tech at HiCenter Ventures, emphasized that Israeli startups should target these markets due to their large budgets, urgent need for innovation, and less crowded procurement processes compared to the U.S. She noted that successful pilots in New Zealand or Australia could pave the way for contracts with allied countries like the U.S., UK, and Canada.
Lior Chanuka, CEO of HiCenter Ventures, announced their first investment in the defense tech sector: NexTenna, which develops advanced satellite communication antennas suitable for both military and civilian use. NexTenna’s technology addresses key geographic and security challenges faced by Australia and New Zealand.
NZIIH, established in 2021 and based in Wellington, facilitates technological collaboration and business partnerships between Israel and New Zealand, focusing on sectors such as agritech, medtech, cleantech, space technologies, mobility, cyber, AI, and critical infrastructure. HiCenter Ventures, founded in Haifa in 2021, supports the local tech ecosystem and has invested in over 100 startups, raising more than $300 million collectively. In 2025 alone, it invested in 24 startups, including 19 new portfolio companies.
