The world has continued to recognize the importance of drones and this has been demonstrated in so many instances especially in addressing security concerns globally. The ongoing conflict in Ukraine is one instance. Israel Aerospace Industries secured a $600 million deal with a foreign country and a $400 million deal with the Israeli Ministry of Defense.
Before this recent development, Israel Aerospace Industries IAI had experienced a sort of hiatus over an extended period when it comes to mega deals. The company will now have its hands full within a space of weeks with these two deals valued at almost $1 billion.
The two deals struck by IAI involves unmanned aircrafts which is one area where Elbit, IAI’s biggest competitors have flourished over the years. In 2021, Elbit sold Hermes 900 drones for around $300 to an Asian country. IAI on it’s own part reached a $200 million agreement with an Asian country for Heron drones.
IAI will now sell drones to an unnamed foreign government, and the Israeli Ministry of Defense (representing IDF). While the deal with the foreign country runs to the tune of $600 million, the deal with the Israeli Ministry of Defense is worth around $400 million. Since 2018 when IAI struck a $600 million deal with Germany to lease Heron drones, the company has not scored such a huge transaction. This is the biggest deal yet.
Recent wars have amplified the need for unmanned aircrafts which is used to locate and attack targets. The war in Ukraine has particularly increased the interest in drones and its technology. So far, Ukraine employed “Bayraktar”, Turkish attack drone while its counterpart has employed Forpost-R (based on IAI Searcher drone), and Orlan-10.
Russia recently expended a whooping $1 billion in a deal with the Iranian government for an attack drone. It has successfully used this technology in the past as an image of what is left of the Iranian Shahed 136 wandering drone was on display at a particular point in time.