The return of Russia to the international arms market as a leading player alongside the US will greatly boost arms sales and contribute to a further increase in Israeli arms exports, says Giza Singer Even analyst Joshua Yeres in a report on Israel’s defense industry.
Yeres believes there is synergy between Israeli weapon systems and Russia’s needs, and he advises Israeli defense companies to enter into joint ventures with Russia’s defense industry. He predicts further growth in Israeli defense exports to developing countries, and that defense exports will grow by 20% a year at least through 2010. he expects Israeli arms exports to India to grow particularly fast.
Figures collated by Giza Singer Even on global arms sales indicate that certain features of the Cold War are returning, with Russia’s share of global arms sales steadily increasing. The US and Russia between them account for 70% of total arms sales to developing countries. Until now, most attention has been drawn to the strengthening ties of Israel’s defense companies with their US counterparts, but a new business horizon is opening before the Israeli companies.
Yeres believes that, from Russia’s perspective, Israeli defense companies have a clear advantage over the defense industries in Western countries, because Israeli companies are the only ones that developed dual capability enabling the installation of Western systems with Russian and former Eastern Bloc platforms.
Published by Globes [online], Israel business news - www.globes.co.il - on May 3, 2007
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