Major Israeli defence firms are reportedly considering setting up production facilities in the Republic of Cyprus, potentially giving them easier access to the European Union’s €150 billion SAFE defence programme.
According to a report by Turkish newspaper Hürriyet, citing a report by Phileleftheros based on senior government sources, several major Israeli defence companies have expressed interest in investing in Cyprus.
Elbit, IAI and Rafael named
Among the companies reportedly considering investment are Elbit Systems, known among other activities for its Hermes family of unmanned aircraft, Israel Aerospace Industries (IAI), and Rafael Advanced Defense Systems, which develops missile and other advanced weapons systems.
The report also refers to interest from smaller Israeli companies specialising in artificial intelligence and electronic warfare.
Hürriyet presents the reported interest as an effort to establish defence production within an EU member state, allowing companies to develop a European production base and facilitating access to the European defence market.
Herzog visit placed in focus
The Turkish newspaper also links the reported interest to Israeli President Isaac Herzog’s recent visit to Nicosia.
Hürriyet claims that Herzog visited Cyprus and, following a request from the companies involved, secured the consent of President Nikos Christodoulides.
However, this is an assertion made by the Turkish publication. The report provided does not include a specific official statement or evidence that such approval was granted during the Christodoulides-Herzog meeting.
SAFE programme and ‘Made in EU’ production
According to Hürriyet, a key motivation is the EU’s SAFE programme and the opportunity for Israeli companies to strengthen their position in the European defence market through production within the EU.
The newspaper argues that establishing facilities in Cyprus could allow defence equipment to be produced with a European origin rather than being exclusively Israeli-made.
The report also notes that Israeli defence companies are increasing sales to European countries despite political tensions between Israel and the EU.
It highlights Elbit Systems’ existing production presence in Romania, as well as Israel’s defence cooperation with Greece.
Also read: Herzog recalls his lifelong love for Cyprus
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