AMMAN – The
Stockholm International Peace Research Institute (SIPRI) issued its new list of the top 100 companies in the
world engaged in the production of weapons and military services for the year
2022 in December.
اضافة اعلان
As reported by Khaberni, the list includes
three
Israeli companies, with Elbit Systems ranking 24th, Israel Aerospace
Industries ranking 35th, and Rafael ranking 42nd. All three companies are among
the top 50 globally.
Another report from the institute revealed
that Israel ranked tenth on the list of the largest arms exporters during the
period from 2018 to 2022, accounting for 2.3 percent of the total global arms
sales.
This
demonstrates Israel's prominent position in the global arms trade network after major powers such as the United
States, Russia, Britain, France, and Germany.
Israeli
Defense Collapse Effects
With the collapse of the
Israeli defense line in Gaza on the day the Al-Qassam Brigades carried out the Operation
Al-Aqsa Flood on October 7, and the failure of surveillance and protection
systems to prevent the breach of the separation barrier, Israel's pride, the
Merkava tank, was destroyed and damaged by locally made rocket launchers during
the ground operation. The Namer armored personnel carrier, which costs about $3
million, suffered a painful blow after one of them was destroyed by a Cornet
missile, killing all its occupants.
Despite its reputation for providing
protection against anti-tank missiles through an active protection system and
its strong armor, this type of weaponry has been adversely affected, raising
doubts about its effectiveness.
The repercussions began early, as reported
by Intelligence Online. South Korea initiated a review of the effectiveness of
the surveillance and protection system it acquired from the Israeli company
Elbit Systems to monitor the demilitarized zone with North Korea. This move
followed its failure to protect the barrier wall in Gaza, amid concerns about a
potential North Korean attack similar to the one that disrupted the system's
effectiveness.
Tel Aviv also decided to halt all military
and security equipment sales, along with associated services, to Colombia
following a statement by Colombian President Gustavo Petro that 'terrorism
kills innocent children in Palestine.' Colombia, which purchases drones,
surveillance technologies, and electronic espionage from Israel, found its
Israeli-related acquisitions affected.
Since arms sales are executed based on
contracts that take time to negotiate and implement over several years, the
repercussions of the performance of
Israeli weapons in Gaza on sales are
expected to gradually appear in the coming years. Specifically, sales of
weapons that prove to be unsuccessful and fail to deliver the promoted
features, such as the Namer armored personnel carrier and Merkava tank, as well
as Israeli surveillance systems, may be impacted."
Origins
of Israeli weapons industry?
During its first two decades, Israel relied
on arms from France, which aimed to establish regional balance with Egypt in
response to its support for the Algerian struggle against French occupation.
As this strategic rapprochement declined,
French President Charles de Gaulle imposed a ban on arms sales to Israel in
1967. Subsequently, Tel Aviv directed 46 percent of its total research and
development investments to the local arms industry to meet the needs of its
army and reduce dependence on foreign sources subject to political
restrictions. Additionally, Israel sought to achieve side goals such as
stimulating economic growth, developing technological innovation for civilian
use, and providing employment opportunities for scientists and engineers who
immigrated to Israel from Western industrialized countries.
The
United States on the scene
With the United States beginning military
aid to Israel in 1973, there was a surge in the Israeli military industries
sector. Washington allowed Israel to convert part of its aid to shekels to buy
weapons from Israeli companies, increasing local demand.
Given that the profitability of production
depends on economies of scale, and Israeli weapons companies serve a small
local market compared to their counterparts in the United States, the
Soviet Union, and Western countries, Israel sought external markets to expand exports,
allowing the production of weapons at an economical price.
Retired officers from the military and
intelligence played a role in establishing private companies and promoting
Israeli arms exports abroad, especially to Latin American countries, which
accounted for 60 percent of Israeli arms exports by 1980.
India and Azerbaijan entered the scene as
relations between Israel and these countries grew. The turning point was the
formal establishment of relations in 1992. Azerbaijan, after gaining
independence from the Soviet Union, needed quality weapons quickly due to its
repeated wars with Armenia. Thus, Israeli arms exports shifted towards Asia.
Another leap occurred when the United
States determined its annual aid to Israel in 1999, pre-agreed within a
"memorandum of understanding," renewed every ten years. This allowed
the Israeli army to make long-term armament plans, ensuring stable funding for
weapons manufacturing programs by Israeli companies.
By 2014, Israel became the world's leading
exporter of drones with a market share of 60 percent at that time. It also
became a leading country in precision weapons, electronic warfare, command and
control systems, surveillance and reconnaissance systems, as well as
manufacturing Merkava tanks, Namer armored fighting vehicles, and air defense
and missile systems like Iron Dome, David's Sling, and Arrow.
Size
of Israeli Arms Companies
Currently, according to the book
"Israeli Defense Industry and US Security Assistance" published by
the Israeli National Security Studies Institute in 2020, there are about 600
companies operating in the Israeli weapons production system.
They employ over 45,000 people, with an
average annual sales of $10 billion. Seventy percent of their production is
exported, a massive figure when compared to the United States, which exports
about 24 percent of its production, and Russia, which exports 55 percent.
Since large Israeli weapons companies are
wholly or partially owned by the government, such as Israel Aerospace
Industries and Rafael Advanced Defense Systems, these companies have helped Tel
Aviv build broader international relationships. Selling weapons is not limited
to delivering hardware but also opens the door to close relationships between
the seller and the buyer regarding training, maintenance, and the supply of
spare parts.
As the ability of countries to export
weapons is linked to proving the field effectiveness of these weapons through
their experience in actual combat operations, the exports of Israeli weapons
depend on the reputation and performance of the Israeli army.
This prompted Germany, after the outbreak
of the Ukraine war, to request the purchase of the Arrow-3 missile defense
system from Tel Aviv due to the success of Israeli missile defense systems in
intercepting a large percentage of missiles launched toward Israel.
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