Israel Aerospace Industries (IAI) has announced a significant military equipment supply agreement worth $1 billion, spanning approximately five years. The deal, reported to the stock exchange on Tuesday, is with an undisclosed "third party" country.
The agreement, set to be completed by 2029, requires IAI to provide guarantees for advances, execution, and responsibility. These guarantee amounts will vary based on the project's progress.
While IAI has not officially named the purchasing country, foreign reports suggest the deal may involve satellite technology and could be between Israel and Morocco. These satellites reportedly serve communication, radar, and intelligence purposes.
IAI's expertise in satellite production is noteworthy, as it is one of only ten manufacturers worldwide with such capabilities.
Adding to the speculation, IAI Chairman Amir Peretz is currently visiting Morocco. Some sources believe his trip may be connected to finalizing this agreement, though this has not been officially confirmed.
This deal comes at a time of heightened global demand for military equipment. An industry insider commented, "This is a golden era for Israeli defense industries because their equipment and technology have proven effective on the battlefield during the Gaza war."
The agreement was reached despite recent challenges such as being barred from participating in a major arms exhibition in Paris. As with all deals involving military technology, the specifics remain closely guarded. More details may emerge as the project progresses towards its 2029 completion date.
Ynet contributed to this article.
