Israel and Spain Boost Defense Trade

Israel holds a prominent position in Spain’s defense trade, ranking sixth in exports and ninth in imports.

While Israel primarily exports, their imports from Spain are also rising. In the first half of 2022 alone, authorized sales to Israel increased by 90.97% compared to all of 2021.

Last year, Spain purchased defense materials worth EUR 47 million ($50.52 million), constituting 1.7% of all its defense imports.

Spain recently approved the purchase of 1,680 Spike LR2 anti-tank missiles for EUR 285 million ($306.6 million).

A Spanish consortium will manufacture these systems. This group includes companies like Escribano Mechanical & Engineering and Tecnobit.

Pap Tecnos, a subsidiary of Israeli company Rafael, leads it. Escribano also tested the Iron Fist active protection system from Israel’s Elbit Systems.

This took place at the Álvarez de Sotomayor training field in Almería, Spain. Not all ventures have been successful, like the failed project to build the VCR 8×8 Dragón turret.

In the first half of 2022, Spain approved export licenses to Israel worth EUR 9.2 million ($9.912 million).

Of this, only EUR 1,673,299 ($1,799,561.4) materialized, setting a new record.

Private Israeli industry accounted for 78.6% of these purchases; the rest went to the Israeli military.

The focus of Israeli interest has also shifted. In 2021, Israel mostly sought Spanish bombs, rockets, and missiles.

In 2022, unmanned aerial vehicles (UAVs) took the spotlight. The only rejected licenses, seven in total, were for UAV navigation systems.

The data suggests that land systems are the priority for both import and export activities. Missiles dominate Spain’s purchases from Israel.

In contrast, fire control systems led to Israel’s buys from Spain. Other significant categories include imaging equipment, munitions, ground vehicles, and aircraft.

Spain also approved six dual-use item export licenses to Israel, totaling EUR 593,850 ($638,136). The approved sales were primarily in material processing and information security.

Background

The Israel-Spain defense relationship isn’t new, but it has intensified in recent years. This growth may be due to geopolitical shifts and shared security concerns.

Israel has a strong technology sector, especially in defense. Spain, with its diverse manufacturing base, offers a complementary partnership.

Trade between the two could have broader implications. It could strengthen their bilateral ties and their positions within the EU and NATO.

Some critics, however, question the ethics of such defense trades.

Despite these concerns, the upward trend in defense trade between Israel and Spain shows no signs of slowing down.