Israel Plans Defense Industry Stake Sales to Cover War Costs

Deep News01-22

According to media reports citing senior government officials, Israel intends to sell shares in some of its largest weapons manufacturers to raise funds for the soaring defense expenditures incurred during the conflicts of the past two years. Yali Rothenberg, the Accountant General at the Ministry of Finance, stated that the privatization process for Israel Aerospace Industries (IAI) has already commenced. Concurrently, the potential privatization of Rafael Advanced Defense Systems is also under examination. Rothenberg indicated that the government's "initial concept" involves selling a 25% stake in IAI, which could potentially increase to 49%, with the final percentage dependent on the government's decision. It is currently premature to determine IAI's valuation, but its substantial backlog of nearly $30 billion in arms sales orders serves as a key indicator of its scale.

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