Israeli Defense Industries Expand Global Footprint with New Muslim Market Deals
Israeli defense industries are expanding into Muslim markets with debuts in Azerbaijan and Morocco, while securing key US and European contracts.
Despite attempts by some Western nations to curb Israeli defense industries, these companies continue to strengthen existing markets and expand into new ones while securing lucrative future contracts.
Israeli Defense Firms Expand into Muslim Markets
Israeli defense companies are reaching an impressive marketing milestone this week by participating in two prestigious exhibitions in Muslim-majority nations. The ADEX exhibition opened in Baku, the capital of Azerbaijan, running through October 2, and five days later, Israeli firms will make their debut at the Marrakech Air Show in Morocco.
Participating Israeli companies in Azerbaijan include major defense contractors Elbit Systems, Israel Aerospace Industries (IAI), and Rafael Advanced Defense Systems, alongside simulator developer Bagira, and drone manufacturers Aeronautics, Bird Aerosystems, and UVision. Azerbaijan is a prominent customer of Israeli defense industries, having secured decisive victories during the Second Nagorno-Karabakh War in 2020 and subsequent military operations in 2023 utilizing Israeli weaponry.
Marrakech Air Show and US Contracts
Since the signing of the Abraham Accords, Israeli defense companies have signed numerous agreements with Morocco. The debut at the Marrakech Air Show reflects a tightening of relations between the defense ministries of both nations. Alongside Elbit, IAI, Rafael, and UVision, participating firms include drone manufacturer XTEND and satellite communications provider Orbit.
Meanwhile, Rafael has achieved a new milestone in the United States. Its American subsidiary secured an agreement to certify the shoulder-launched Spike SR tactical missile for United States Army forces. Weighing 10 kilograms with a range of approximately two kilometers, the Spike SR technology evaluation began in January 2021, leading to advanced trials following successful live-fire exercises.
"The Spike family includes a broad spectrum of models tailored to various ranges and platforms, ranging from the lightweight Spike SR to the long-range Spike NLOS." — Defense Industry Report
Germany Eyes Record Defense Budget
Germany has positioned itself as a leading customer for Israeli defense exports. The landmark Arrow 3 missile defense deal propelled Germany to second place among Israel's export destinations between 2021 and 2025, accounting for approximately 21% of total defense sales according to the Stockholm International Peace Research Institute (SIPRI).
German Defense Minister Boris Pistorius has expressed optimism regarding an increased defense budget for 2027. The German Ministry of Defense has submitted a request to the Bundestag for a record budget approaching 140 billion euros, including 109.7 billion euros in core funding, representing a 32.7% increase compared to 2026 allocations.
