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Israel Defence and Security Report Q1 2009
Market |
Defence |
Report Type |
Market Research |
Country |
Israel |
Published |
12 February 2009 |
Number of Pages |
60 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Israel exists in a highly insecure environment. Internally, its occupation of the Palestinian territories has led to a prolonged campaign of violence against both military targets and non-combatants within its own territory. Further non-state groups resident in other countries such as Lebanon also target Israeli forces with regular violence. Finally, a variety of external threats exist among Arab and neighbouring countries, most notably Iran, that have refused to formally recognise Israel's existence as a state.
A final peace settlement between Israel and the Palestinian Authority (PA) still seems highly unlikely.
Israeli settlement activity in the West Bank and the final status of Jerusalem will remain key sticking points in negotiations. In fact in spite of the ceasefire agreed in June and meant to run until December 2008, the Israeli armed forces were still exchanging fire and rockets in Gaza towards the end of the year.
Israel's defence industry has become the leading sector in the country's economy. It benefits from large amounts of support from the government in the form of contracts, and the country possesses a welltrained and well-armed military. Owing to the constant rigours of urban warfare experienced by Israeli troops, the military is highly experienced in low-level warfare. The armed forces are heavily dominated by the army, largely owing to the necessity of land forces as an occupying power. Israel has the region's only viable nuclear arsenal, advanced missile capabilities, and is reported to have pursued other WMD programmes.
US-Israeli ties are extremely close, with Israel receiving significant military aid from the US. Israel has a well-developed indigenous arms industry and is a significant arms exporter in its own right. Major purchasers include India and Turkey. It is noteworthy that Israel is India’s second-largest supplier of arms.
From 2009 onwards, we believe that the impact of a slower US economy and the continuation of tough credit conditions will take its toll on the country, with growth expected to come in at 3.2% in 2009, dropping below 3.0% annually by 2012.
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