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Israel's Defense Industry Targets Japan's Growing Market

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An Israeli delegation of 20 companies participated in Japan’s biennial DSEI international defense exhibition this week, signaling Tokyo’s emergence as a strategic destination for Israel’s defense sector. The exhibition highlights a remarkable success story: Israeli defense exports to Japan have surged from tens of millions of dollars annually to hundreds of millions.

Strategic Breakthrough
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“About five years ago, we defined Japan as a breakthrough country in the Ministry of Defense, and since then the investment has been continuous,” says Brig. Gen. (res.) Yair Kulas, head of SIBAT, the International Defense Cooperation directorate at Israel’s Ministry of Defense. “That investment has proven itself, because the export data indicate an increase from annual exports to Japan of tens of millions of dollars, to hundreds of millions.”

Seven companies are participating through SIBAT, while eight startups are led by the Ministry of Defense Directorate of Defense R&D (MAFAT). The 2025 exhibition doubled in size compared to 2023, reflecting Japan’s growing interest in defense technology.

Combat-Proven Technology
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Israel’s major advantage lies in systems proven on the battlefield. “Many countries are looking for this,” Kulas emphasizes. “Our industry is amazing, creative and proactive, while the Japanese love technology, and playing with technology. They are interested in everything from Israel.”

The SIBAT pavilion features:

  • Orbit Technologies: Advanced air and sea communications systems and satellite tracking
  • Xtend: AI-based drone systems
  • Steadicopter: Unmanned aerial systems with real-time intelligence and precision attack capabilities
  • MagnaBSD: AI-based video analysis for military surveillance and infrastructure protection

The DDR&D startups showcase cutting-edge innovation:

  • Resight: Augmented reality solutions for continuous multi-participant experiences
  • Next-Dim: Network analysis platform for financial sector fraud detection
  • Sealartec: Autonomous launch systems for marine vehicles

Deepening Bilateral Ties
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The Israel-Japan defense relationship has strengthened over many years, with directors general of Israel’s Ministry of Defense and senior officials like Benny Gantz visiting Japan. “The departments of the ministry are coming to Japan, and everyone is involved from the moment we made a decision on breaking into the country,” Kulas notes.

Adapting to Local Production
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A major challenge is Japan’s preference for domestic manufacturing. “This is a serious trend,” Kulas acknowledges. “If in the past we said in government-to-government contacts that a deal must be 100% production in Israel, we understood that there would be no deals if we did not agree to about 20%-30% local production.”

Israel has adapted by partnering with local trading companies, essential for doing business in Japan. “The Japanese will not make a deal without a local company,” Kulas explains. Cultural sensitivity is paramount—before the exhibition, the delegation received training on Japanese business customs and cultural norms.

Regional Hub Strategy
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Beyond Japan, Israel’s Ministry of Defense will attend Seoul’s air show in October. “Seoul is an industrial hub like Japan, and we must be there,” says Kulas. “Our industry connects with South Korea, they produce a platform and we produce radar. The by-products on the Korean platforms are beneficial to both sides, because they appeal to other markets.”

Navigating Political Challenges#

Despite political tensions with some European countries, Israel maintains its exhibition schedule. Following the Paris Air Show in June (with limited Israeli presence due to French government obstacles), SIBAT plans appearances at London’s DSEI in September, Seoul ADEX in October, and Dubai Air Show in November. “All exhibitions are on the agenda, and there are no signs of cancellations,” Kulas emphasizes.

The Japan Model
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Japan represents a success story for Israeli defense exports—a testament to strategic planning, cultural adaptation, and technological excellence. As regional security concerns grow across Asia-Pacific, Israel’s combat-proven systems and innovative startups are finding receptive markets in countries seeking reliable defense partners.

The relationship demonstrates how shared interests in advanced technology and regional security can overcome diplomatic constraints, building bridges through practical cooperation and mutual benefit.

Source: Globes

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