The scope of the deal is estimated at approximately $3.1 billion and is expected to complete the sales contract that Israel and Germany signed about two years ago, valued at approximately $3.6 billion. The two deals together are estimated at approximately $6.7 billion (over 20 billion shekels), Israel's largest-ever defense export deal.

Defense Ministry Director-General Maj. Gen. (Res.) Amir Baram said, "The Arrow deal expansion is another significant milestone in the deepening strategic relations between Israel and Germany, our central partner in Europe. The massive deal, valued at over $3 billion, embodies, in practical terms, the Defense Ministry's strategy to increase defense exports. The deal will strengthen Israel's position in the world as a defense superpower, will expand and accelerate Arrow production for the IDF as well, and will channel billions into strengthening the defense industries and developing the next generations of defense systems."

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The US is preparing to invest over $3.5 billion to restore its arsenal following operations connected to Israel, Bloomberg reported. Budget files completed by mid-May and reviewed by Bloomberg show allocations both for replacing interceptors – including at least $1 billion for RTX-produced missiles used against Iranian strikes – and for tasks such as radar upkeep, naval repair work, and munitions transport. Nearly all US-specific expenditures are labeled as "emergency budget requests."

The plan is tied to the 2024 Israeli Security Supplemental Appropriations Act, which set aside $14 billion to rebuild US stockpiles and expand Israel's interceptor supply. According to Bloomberg, the Pentagon said these expenses cover missions by US Central Command either responding to "the situation in Israel" or to hostile activity from it, including combat "executed at the request of or in coordination with Israel for the defense of Israeli territory, personnel or assets during attacks by Iran" or allied groups.

The documentation cites US actions during Iran's April 2024 attack, which included more than 110 ballistic missiles, 30-plus cruise missiles, and over 150 drones. Bloomberg noted that the replenishment requests, which date back to late 2023, are distinct from the $4.2 billion in weapons already supplied to Israel from October 2023 through May 2025, as tracked by the Center for International Policy in an Aug. 7 report.

The largest single line item is about $1 billion to replace RTX's Standard Missile interceptors, especially the advanced "SM-3 IB Threat Upgrade" model costing $9 million to $12 million each. These were first launched from US Navy ships during the April 2024 missile barrages. Bloomberg also reported that $1.4 million was requested for a special flight mission that delivered fresh SM-3 IB interceptors to replace expended rounds.

In June, the USS Arleigh Burke and USS The Sullivans fired SM-3s to protect Israel, a US official said. A separate official told Bloomberg that a US Army unit in the area simultaneously deployed THAAD interceptors against Iranian missiles.

The second-largest request is $204 million for Lockheed Martin's THAAD interceptors, which cost about $12.7 million each to produce. Another $9.2 million is sought for delayed maintenance of the THAAD TPY-2 radar, requiring replacement of eight power engines and alternators. Budget files further describe the radar costs as stemming from an "unplanned THAAD deployment" at a new site, in addition to the unit the Pentagon previously confirmed deploying to Israel last October.

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Representatives from the US and Israeli Air Forces met last month to discuss a remarkable development that the IDF described as "updated orders for the cooperation between the two nations' air-defense systems during emergency situations."

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The Israeli delegation was led by Brig. Gen. Gilad Biran, commander of the IAF's Air Defense System, and the American delegation was led by Brig. Gen. Greg Brady, commander of the 10th Army Air and Missile Defense Command, which is based in Germany.

"The purpose of the meeting was to improve the collaborative readiness of the forces for the joint defense of the State of Israel," said the IDF. "At the end of the meeting, a document for updated air-defense operational cooperation between the two countries was signed."

According to Charles B. Perkins, director for US-Israel Security Policy at the Jewish Institute for National Security of America, while the two militaries have a long record of cooperation and coordination in joint exercises and air-missile defense planning, "this new agreement and the decision to publicly disclose it takes place within the context of some significant recent trends."

Perkins pointed out that the May conflict between Israel and Hamas, dubbed by the IDF as "Operation Guardian of the Walls," and the performance of the Iron Dome air-defense system against Gazan rocket barrages "has certainly garnered some attention within the US Army's air-defense community."

Iron Dome maintained an interception rate of approximately 90% during the conflict, according to an IDF assessment.

In addition, Perkins said, the issue of counter-drone technology is becoming ever-more relevant.

Hamas launched six drones during the May conflict, and the IDF intercepted all of them, including, for the first time, by Iron Dome as well as missiles fired from F-16 jets.

"The American Army is the lead US service tasked with countering the mounting small drone threat and the prospect of offensive drone swarms – a phenomenon on the horizon in the Mideast," said Perkins.

Meanwhile, the drizzle of rocket fire targeting US assets in Iraq has "highlighted the need for greater responses to the challenge of non-state entities using high-trajectory weapons," he added.

Simulating rapid deployment of American assistance forces

On July 23, Israel and the United States launched the Juniper Falcon joint air-defense drill, which simulates a range of missile threats on Israel and the ability of US forces from EUCOM (European Command) to quickly deploy to Israel and set up air-defense systems in assistance of Israel's own defense systems.

The United States sent two C-130J Super Hercules Aircraft from Ramstein Air Base in Germany to Israel with personnel to take part in the exercise, which was held at multiple locations in Israel.

The long-planned drill was "designed to test simulated emergency response procedures, ballistic-missile defense, and crisis response assistance in the defense of Israel," the IDF stated.

It also serves as an opportunity for US military personnel and the IDF to exercise together and learn from one another.

While Perkins said it wasn't possible to say with certainty which air-defense systems America might offer, should Israel request emergency support, he noted that "the configurations seen during the recent Juniper Cobra drills are probably a good indication."

In line with what the exercise showed, Patriots, naval-based interceptors such as the Aegis destroyer SM-3 and perhaps the THAAD, which was deployed for the first time to Israel during one of the most recent joint exercises, could be sent over, assessed Perkins.

Such systems could integrate with Iron Dome, David's Sling, and the Arrow 2 and 3 air-defense systems, the latter which intercepts ballistic missiles in space.

"Clearly, this new agreement is a reflection that America recognizes the mounting danger Israel faces, particularly from the north and east, and seeks to ensure that if a future conflict escalates to a certain level, the United States will be prepared to rapidly take the necessary steps to support Israel's air- and missile-defense requirements should a political decision be made to do so," stressed Perkins.

Meanwhile, the fact that Israel has transited to America's CENTCOM area of responsibility, which commands forces in the Middle East, and away from EUCOM, has not stopped significant links between the IDF and EUCOM on air-defense cooperation, he said.

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On the other hand, Perkins cautioned that the fact that CENTCOM has been ordered to withdraw American missile-defense assets from the Gulf region as the threat from Iran and its proxies mounts "is not an encouraging development for regional security."

Iron Dome's role in defense cooperation

Meanwhile, the US Army has purchased two Iron Dome batteries manufactured by Israel's Rafael defense company as part of an initial evaluation phase. Rafael has demonstrated the system for the US Marines as well.

This time last year, the US defense contractor Raytheon and Rafael announced a joint venture to produce Iron Dome weapons systems on American soil.

"While there's still a degree of uncertainty regarding what the US Army intends to do with the two Iron Dome batteries it's acquired – now undergoing testing – it stands to reason that boosting the mechanisms for bilateral air-defense cooperation will support any synergies that may arise, as Israel continues modernizing and expanding its own Iron Dome capabilities," said Perkins.

Reprinted with permission from JNS.org.

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The tests were designed to gauge the ability of the system's features by simulating cruise and ballistic missiles.

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"The Israel Missile Defense Organization (IMDO) of the Directorate of Defense Research and Development (DDR&D) of the Israel Ministry of Defense (IMOD) together with the Missile Defense Agency, successfully completed a series of flight tests of the David's Sling Weapon System (DSWS) in an advanced system configuration against current and emerging threats," the US military's Missle Defense Agency said in a statement. "During the campaign, designated David's Sling Test-7 (DST-7), IMDO successfully demonstrated advanced capabilities of the DSWS in the intercept of a threat representative target. This intercept test represents a key milestone in DSWS development."

Video: Defense Ministry

According to the statement, "additional flight testing was conducted as part of the campaign to collect technical and engineering data associated with the DSWS performance and intra-operability between different layers of the Israeli multi-tier defense architecture, including Arrow Weapon System, David's Sling and Iron Dome Defense System that will allow integrated combat capabilities with additional interception opportunities."

Iron Dome, the Arrow, and David's Sling are part of the joint US-Israeli project aimed at developing a multi-layered missile defense system that would allow Israel to maintain its military edge in the region. The Iron Dome has been instrumental at intercepting rockets from the Hamas-controlled Gaza Strip, and the hope is that the project would also be useful in any future conflagration involving long- and medium-range missiles from Iran.

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The new facility will produce both the Iron Dome Weapon System, which consists of the Tamir ‎interceptor and launcher and the SkyHunter missile, a US derivative of the Tamir. ‎

Iron Dome has been used extensively during various flare-ups between Israel and the Palestinians, frustrating terrorists attempt to target civilian population centers. According to various reports in the foreign media, its success rate stands at about 90% and it has carried out more than 2,500 such interceptions.

The two companies expect to agree on a site location by the end of 2020. ‎

‎"This will be the first Iron Dome all-up-round facility outside of Israel, and it will help the US ‎Department of Defense and allies across the globe obtain the system for defense of their service ‎members and critical infrastructure," said Sam Deneke, Vice President of Land Warfare and Air ‎Defense business execution at Raytheon.

Brig. Gen. (res.) Pini Yungman, executive VP for Air and Missile Defense at Rafael said, "We are excited ‎about this new stage in our partnership with Raytheon and proud of our US production."‎

Yungman said that Rafael and Raytheon had "long partnered on US production of Iron Dome and are ‎pleased to increase manufacturing and bring SkyHunter to the US."‎

The Iron Dome system was originally funded and developed by Israel, which built and deployed the ‎first two batteries. The US is providing funding for another eight batteries, as well as the interceptor ‎missiles they use. ‎

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According to the Syrian state news agency's report, the country's air-defense systems were activated against "hostile missiles" launched from the Israeli Golan Heights and Israeli aircraft west of Damascus. In addition, According to the report, two further explosions were heard around 1:00 a.m., one in the Quneitra area and a second in Tal al-Hara, adjacent to Quneitra.

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Syria accused Israel of the strikes but Israel neither confirmed nor denied the reports. Israel is keeping close tabs on developments in Syria after reports earlier this week said that Druze Hezbollah operative Mashhour Zidan, had been assassinated in Quneitra.

The Syrian Observatory for Human Rights reported that the attack was directed, among other targets, against weapons storage sites used by Hezbollah and other pro-Iranian militias in Syria's and housing long-range missiles and other weaponry. It was further reported that one of the missiles had exploded inside a base in western Damascus where large forces of pro-Iranian militias in Syria were stationed.

The zone has been a target of Israeli raids against Tehran-backed militias which have become entrenched in southern Syria and the Golan Heights near the border with Israel.

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The commander told Al Qassam that the rockets Hamas utilized in the May round of violence were locally made versions of the Sejjil missiles produced in Iran.

Abu Maaz said that the number of rockets fired during the May clashes was "the highest in the history of the conflict with the occupation," with hundreds of rockets and mortars launched at Israel in a single 30-hour period.

Hamas is also claiming that its rocket launch personnel, who coordinated their launches through a joint operations center shared by Hamas and the rest of the terrorist groups in Gaza, managed to hit "key sites" in Israel and increase their rocket fire after the IDF carried out airstrikes on residential buildings in Gaza.

According to Abu Maaz, 85 rockets had been fired at Ashkelon; 80 at Ashdod; and 60 at Beersheba, all of which supposedly contained heavy explosives payloads.

"The rocket fire worked as planned, and in a well-timed manner," he told the site, using as an example simultaneous launches toward both Beersheba and Ashkelon, intended to confound Iron Dome.

Abu Maaz bragged that the rocket barrages had forced Israel to expedite efforts to reinstate calm and implement "understandings" between Israel and Hamas.

Meanwhile, Hamas' armed wing has launched a bitcoin-based crowdfunding campaign. A spokesman for Hamas' armed wing Abu Obeida said that millions of text messages had been sent to "members of the Arab nation and Muslims worldwide" and that each message included a link through which recipients could donate directly to Hamas.

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Last week, both Israel and Hamas denied reports that they had reached an agreement on a six-month cease-fire. Irrespective of any credence one wishes to ascribe the denial, it underscored just how fragile the current lull in hostilities is and how easily they could reignite.

Although it has been barely two weeks since the violence in southern Israel subsided, public recollection of what transpired has faded rapidly with the intervening Israel Independence Day celebrations and the Eurovision hullaballoo helping to dull collective memory.

This is unfortunate … and disturbing.

For it is vital to recall that the latest round of fighting between Israel and the Hamas-ruled Gaza Strip raised troubling questions as to the soundness of the strategic rationale underpinning Israel's air-defense system, particularly the much-vaunted "Iron Dome."

Even before the heavy barrages that rained down on Israel in early May, doubts began to emerge as to its efficacy when projectiles launched from Gaza penetrated deep into Israel, hitting residences in the city of Beersheva and in Mishmeret, a village north of Tel Aviv, with two others landing close to Tel Aviv itself, fortunately causing no damage.

According to Israeli military sources, during the last flare-up, 690 rockets and mortars were fired towards Israeli targets from Gaza by Hamas and Islamic Jihad. About 90 failed to make it across the border. Of those that did, 240 were intercepted by the Iron Dome system, which assesses whether a rocket is likely to strike open ground or needs to be intercepted. The system reportedly had 87% accuracy on attempted interceptions, with 35 rockets striking urban areas. In the barrage, four Israelis were killed and more than 200 were treated in Israeli hospitals.

Depressingly, there appears to be wide consensus among pundits that another, probably broader and more intense round of fighting is merely a matter of time.

Significantly, the number of Israeli civilians killed in the two-day conflict was almost identical to that incurred during 2014's Operation Protective Edge, which lasted nearly two months, when the Gaza-based terror organizations launched more than 4,500 missiles, rockets and mortar shells at Israeli civilian population centers.

Has the 'Iron Dome' become the 'Iron Sieve'?

One of the reasons advanced for the Iron Dome's ostensibly diminished capacity was the intensity of the barrages fired at Israel concentrated within a short time period. Seemingly affirming that this was a purposeful tactic, a spokesman for Hamas's Izzedine al-Qassam Brigades proclaimed: "The Qassam Brigades, thanks to God, succeeded in overcoming the so-called Iron Dome by adopting the tactic of firing dozens of missiles in one single burst."

These results prompted expressions of skepticism, even unfounded derision, as to the true ability of the Iron Dome system to effectively protect Israel's civilian population, even prompting once source to claim (somewhat unfairly), "It's not Iron Dome. It's Iron Sieve."

Of course, such censure may be excessively harsh. After all, the Iron Dome is an extraordinary technological achievement, which has in the past greatly reduced loss of life and physical damage that otherwise may have been inflicted on Israel.

Nonetheless, in light of its somewhat spotty performance of late, there certainly appears to be a strong case for critical re-examination of the strategic rationale underlying its use.

Indeed, it far from unreasonable to assert that the Iron Dome has, in effect,  provided protection for Gazans no less – arguably more – than for Israelis. After all, if the bulk of the on-target rocket barrages had not been intercepted, and had inflicted large-scale damage on its cities and casualties among its civilians, Israel would have been compelled to retaliate with massive punitive measures to silence the fire. Inevitably, this would have caused extensive destruction and loss of life in the Gaza Strip—far beyond that which Israel was able to permit itself to inflict with its civilian population relatively protected.

Flawed strategic rationale

Indeed, the adoption of this kind of strategic passivity was confirmed – and endorsed – in a recent paper published by the Institute for National Security Studies (INSS), titled Long-Range Rocket Fire on Israel's Depth: Lessons for Homefront Defense, authored by Meir Elran and Carmit Padan, who write approvingly: "The State of Israel has so far invested significant sums in passive defense and complementary technologies, with the lion's share going to the "Gaza envelope." The main lesson is that existing plans for improving public and private shelters should be implemented in other parts of Israel, as a fatal strike on the civilian space would generate pressure on any Israeli government and reduce its leeway in the face of Hamas … fire."

But in the context of the conflict between Israel and the Palestinian-Arabs, there is a grave strategic flaw in this kind of reasoning.

For it is precisely because the Iron Dome and "passive defense" have given the Israeli government "leeway in the face of Hamas fire," that the fire has continued.

Thus, paradoxically, because much of their projectiles have indeed been intercepted, the terror organizations have been left intact, enabling them to continue launching further attacks whenever they see fit – typically either when they feel strong enough to do so or too weak not to.

Defensive vs. offensive

The perverse situation is the result of the Iron Dome (and other missile-defense systems) being perceived as solely defensive. Indeed, it is precisely this defense oriented strategy that has led to hostilities with Gaza continuing with no end in sight.

The defining difference between defensive and offensive strategies is twofold:

(a) The element of surprise: The first is that relying heavily on defensive measures denies the defender the element of surprise in that, almost by definition, one cannot launch a surprise defense – in the sense that one can only defend against an attack once launched, often by surprise. So while it is possible that defense systems may comprise elements unexpected by the attacker, typically they can only be deployed against an ongoing attack.

(b) The damage inflicted: The second is that defensive measures cannot inflict greater losses than the resources any prospective aggressor is prepared to commit to an assault on his adversary. In the case of the Iron Dome, the maximum damage that can be inflicted is the destruction of the incoming missile, which the aggressor expected to lose anyway. Accordingly, missile-defense systems, including the Iron Dome, cannot deter attacks by threatening to wreak unacceptable costs on the attacker and thus dissuade him from any further aggression.

The combination of these two elements – the one allowing Hamas and its terror affiliates to choose the time and scope of any attack; the other, allowing Hamas et al. to determine the limits of the damage wrought on them – provide in large measure the reason why the hostilities in Gaza persist.

The pattern of violence in Gaza is almost monotonously repetitive. Time and again, the Gazan terrorists have developed some offensive tactic to assault Israel. In response, Israel devised some countermeasure to contend with it. But all these counter-measures were designed to thwart attacks, rather than prevent them being launched in the first place.

Thus, suicide attacks resulted in a security fence and secured crossings; which led to the development of enhanced rocket and missile capabilities; which lead to the development of the multimillion dollar Iron Dome; which led to the burrowing of an array of underground attack tunnels; which lead to the construction of a billion dollar subterranean barrier; which led to the use of incendiary kites and balloons that, last summer, reduced much of the rural south adjacent to the Gaza border, to blackened charcoal – and look likely to do so again in the coming months.

Indeed, Israel's decade-long policy of ceasing fire whenever the other side ceases fire has allowed Hamas and its terror affiliates to launch repeated rounds of aggression, determining not only when they are launched and when they end, but also largely controlling the cost incurred for such aggression, ensuring it remains within the range of the "acceptable."

Significantly, after each round of fighting, despite the damage inflicted by the IDF, the Gazan-based terror groups have typically emerged with vastly enhanced military capabilities and political standing.

Soon drones with biological/chemical payload?

This is clearly a recipe for unending and escalating violence   and must be abandoned before it culminates in inevitable tragedy.

After all, the Gazan-based terror groups have shown consistently that they can transform everyday children's playthings, such as kites, into instruments of extensive destruction, and forced Israel to develop hugely expensive defenses (such as Iron Dome interceptors) to deal will risibly cheap weapons of attack (such as mortar shells).

It is hardly beyond the limits of plausibility that Israel might soon have to face incoming missiles with multiple warheads, which disperse just before being intercepted, greatly challenging its missile defense capabilities. Or the development of some kind of anti-aircraft capabilities that could restrict, or at least hamper, - Israel's present unlimited freedom of action over the skies of Gaza.

Or worse, will Israel have to contend with the specter of a swarm of drones, possibly armed with biological or chemical payloads, directed at nearby Israeli communities – rendering the billion dollar anti-tunnel barrier entirely moot? For those who might dismiss this as implausible scaremongering.

Indeed, adhering to a purely defensive/reactive strategy will virtually ensure that some kind of offensive measure will be developed to make it ineffective, at least partially.

The offensive imperative: Arabs in Gaza or Jews in Negev

Clearly then, there will be no end to the recurring rounds of violence and the escalating enhancement of the enemies' aggressive capabilities unless Israel undertakes a dramatic change in strategy. Accordingly, instead of focusing on thwarting attacks and limited reprisals for them, Israel must strive to eliminate the ability to launch them.

Rather than ‏employ systems such as the Iron Dome as a purely defensive measure, it should be incorporated as an auxiliary in offensive action – i.e., by minimizing danger and damage to the civilian sector while a large offensive is launched in order to take and hold the areas from which attacks were launched – preventing them from being used for future attacks.

This is the only sustainable long-term strategic rationale for a defense system which comprises launching very costly interceptor missiles at very cheap incoming ones.

The compelling imperative for this modus operandi is, of course, reinforced by the prospect of a coordinated attack by Hamas from the south and Hezbollah, with its even more formidable arsenal, from the north.

Clearly, the prospect of Israel retaking and holding the Gaza Strip raises the perennially irksome question of what is to be done regarding the Arab population of Gaza.

As I've pointed out on numerous previous occasions, in addressing this question Israel must face up to and internalize the unpalatable, but inevitable reality that in the long run, there will either be Arabs in Gaza or Jews in the Negev. Eventually, however, there will not be both.

Accordingly, then, to prevent the Jewish population being denuded by unabated Arab aggression – whether overhead missiles targeting kindergartens or underground tunnels targeting border communities; whether incendiary balloons or explosive kites or anti-tank rockets on cars buses and trains – the only policy is the evacuation of the Gazan population to third-party countries by means of a large-scale initiative of incentivized emigration.

Although the details of such an initiative are well beyond the scope of this essay, I have elaborated on them frequently in the past.

Marshalling the ideological commitment, the political legitimacy and international acceptance for such an initiative is perhaps one of the greatest challenges for Zionism today.

This article is reprinted with permission from JNS.org.

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During the exercise, Indian warships simulated complex threats and ran the Barak 8 system through a number of tests, in which it detected aerial threats and fired missiles at them in time.

Created by Israel Aerospace Industries in conjunction with Rafael, the Barak 8 represents one of the most significant Israeli defense exports in recent years. In 2018, IAI announced a mega-contract worth $777 million for the supply of long-range surface-to-air Barak 8 missile systems to seven Indian warships.

In the previous year, India awarded IAI with a mammoth $1.6 billion contract for the land version of the Barak 8 system.

Such contracts reflect Israel's major role as an exporter of defense technology and weapons systems to international clients worldwide. The extent of Israel's defense exports is apparent in annual sales figures.

In April, the Defense Ministry announced that defense sales to the international market surpassed $7.5 billion. A defense source told Jewish News Syndicate that this figure is considered "a significant success, as it is the second-highest level in the past decade and is reflective of a highly dynamic global market."

The highest annual figures came in 2017, when Israel sold $9.2 billion worth of defense products. In 2016, the figure was $6.5 billion.

Within the Defense Ministry sits the International Defense Cooperation Directorate, known by its Hebrew acronym, SIBAT. This directorate is responsible for building cooperation with existing and potential clients and formulating Israel's defense export policies.

Throughout the year, SIBAT and Israeli defense companies have signed dozens of major contracts – work that has contributed to the high figure of Israeli defense exports.

According to the Defense Ministry's breakdown of the figures, missiles and air-defense systems, such as the Barak 8 system, represented the largest chunk of sales in 2018 (24%). This was followed by UAV and drone systems (15%); radars and electronic warfare systems (14%); aircraft and avionics (14%); and land systems, ammunition and weapons stations (12%). Further down the list are observation systems (9%); intelligence, information and cyber systems (6%); command, control and communications systems (2%); and satellites and space (1%).

When broken down by region, Asia and the Pacific region lead the way in purchasing Israeli defense products (46%). This region is followed by Europe (26%), North America (20%), South America (6%) and Africa (2%).

These trends are well-represented by India's growing use of Israeli defense products, such as the Barak 8, which is also in service by the Israeli Navy.

Nimrod Sheffer, IAI's CEO and president, described India last year as "a major market for IAI, and we plan to … reinforce our positioning in India, also in view of increasing competition."

IAI collaborates with India's Defense Research and Development Organization (DRDO) and local industries in India to develop the Barak 8.

Such sales trends appear set to continue in 2019.

In late April, Israel's Globes business newspaper reported that the Indian Army plans to urgently purchase 240 Spike anti-tank missiles and 12 launchers made by Israel's Rafael Advanced Defense Systems.

And at the start of the year, India purchased another $93 million worth of Barak 8 medium-range naval air-defense systems.

"We have concluded another successful year of Israeli defense exports. Over the past year, we have signed dozens of contracts with various countries around the world," said Brig. Gen. (Ret.) Mishel Ben-Baruch, SIBAT director, in a statement.

Yiftah Shapir, formerly head of the project on Middle East Military Balance at the Institute for National Security Studies in Tel Aviv, said that Israel enjoys a number of "built-in advantages" when it comes to being a defense exporter.

On the technological level, Shapir said, "The connection in Israel between the user and the developer of defense systems is much closer than in Europe or North America."

The IDF's close ties with defense industries make Israel a cutting-edge laboratory for defense development. In addition, Israel is willing to cooperate with clients and let them produce some of the products on their soil, which European and American exporters do not allow, he added.

Clients such as those in the Asia Pacific region "always think ahead and see how they can develop their own industry and get the technology – technology that others will not give them, but Israeli exporters do," explained Shapir.

At the same time, he cautioned, the export market is inherently unstable due to the fact that any change of government in any state that imports Israeli defense goods can affect sales. Turkey, which was once a major recipient of Israeli systems, is one such example, he noted.

"The State of Israel specializes in the enhancement of land, air and naval military systems, and exports some of the most advanced technology in the world," Ben-Baruch added.

The high sales figures, he said, are "evidence of the desire of more and more countries to cooperate with the State of Israel, and a sign of their confidence in the excellent capabilities of our defense industries."

This article is reprinted with permission from JNS.org.

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But a senior Turkish official reiterated Ankara's position that it would not back down from its planned purchase of the system, a procurement that has widened a diplomatic rift between the two NATO allies.

"We will buy the s-400s in July. Our position has not changed," he said.

But the source said talks on the issue continued.

U.S. officials have called Turkey's planned purchase of the S-400 missile defense system "deeply problematic," saying it would risk Ankara's partnership in the joint strike fighter F-35 program because it would compromise the jets, made by Lockheed Martin Corp.

The United States and other NATO allies that own F-35s fear the radar on the system will learn how to spot and track the jet, making it less able to evade Russian weapons.

Ankara has been pushing Washington to establish a working group to assess the risks the system would be posing to the F-35 jet. U.S. Secretary of State Mike Pompeo had dismissed the proposal but there has been renewed effort in Washington to try to use the offer to open a channel for further dialogue with Ankara, another source briefed on the matter said.

The disagreement is the latest in a series of diplomatic disputes between the United States and Turkey. They include Turkish demands that Washington extradite cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.

In protest at Ankara's planned Russian missile defense system purchase, the United States in late March halted delivery of equipment related to the stealthy F-35 fighter aircraft to Turkey.

On Monday, the top civilian in the U.S. Air Force, Secretary Heather Wilson, confirmed to reporters in Washington on Monday that shipments of F-35 support gear to Turkey were still halted. She added that discussions were ongoing regarding those shipments.

But Wilson said Turkish pilots continued their F-35 training program in Arizona.

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