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Israel to ease arms exports rules amid growing global demand

The Defense Ministry’s goal is to boost the competitiveness of Israeli defense firms.

IDF Near Lebanon
A tank unit of the Israel Defense Forces in northern Israel near Mount Hermon on Nov. 26, 2024. Photo by Ayal Margolin/Flash90.

The Israeli Defense Ministry plans to ease security export regulations for Israeli arms manufacturers, allowing them to capitalize on the growing global demand for advanced weaponry.

The key changes include easing marketing restrictions, expanding the availability of information about weapon systems and extending the period for product demonstrations abroad, according to a Tuesday report by the Hebrew-language business news site Calcalist.

“Our goal is to improve the competitiveness of companies,” said the Defense Ministry, according to the report.

This initiative is being led by the Export Control Division (EPI), which also plans to cancel the outdated “Code Order” on encryption, a regulation requiring companies to obtain special licenses for related exports.

“While the plan is to ease marketing procedures for systems, we are shifting most of our oversight to the granting of export licenses,” said EPI head Racheli Chen, according to Calcalist.

The move comes as Israeli companies face boycotts and increasing calls for arms embargoes, highlighted by the protests against Israeli participation in weapons expos in France and Chile this year. The ministry aims to ensure that Israeli companies can efficiently seize new market opportunities.

Defense Ministry Director General Maj. Gen. (res.) Eyal Zamir said at an EPI conference last week, “It’s easy to isolate us, and we face embargoes, both open and silent, including from those who were or are considered our good friends. We will continue to increase independent production.”

Chen added that high demand for Israeli defense systems in expected in the coming years, particularly in areas such as space and air defense, drones and unmanned aerial vehicles, which have demonstrated their effectiveness during the war.

“We need to enable industries to capitalize on these export opportunities,” said Chen.

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