Senior figures in the Japanese defense sector including agents, company executives and government officials have recently increased their activity in Israel, with the aim of closing strategic deals in the coming months, three senior executives in the Israeli defense industry have told "Globes."
As a result, the International Defense Cooperation directorate at Israel's Ministry of Defense - SIBAT - held a professional seminar this week, which dealt with opportunities and practical tools for operating in the Japanese defense market. The seminar, led by SIBAT head Brig. Gen. (Res.) Yair Kulas, was attended by the director of the political department at the Ministry of Foreign Affairs and former Israeli ambassador to Japan, Gilad Cohen, as well as representatives of Japanese trading and manufacturing companies and some 70 Israeli companies.
The Japanese market holds great potential, first and foremost due to the defense budgets. Since World War II, Tokyo has maintained a relatively low defense budget and has not put defense at the top of its priorities.
Warm dialogue
Japan's defense budget stood at about $33.6 billion in 2022, which was only about 0.93% of GDP. Since then, there has been a consistent increase annually to about $57.5 billion this year, which is about 1.3% of GDP. Although the figure is low by international terms, such as NATO's goals, which stand at about 2% today and about 5% in 2035, on a cultural-Japanese level, this is a tectonic shift, stemming from the Chinese and North Korean threats, as well as Russia's invasion of Ukraine in 2022.
On the other hand, Japan’s defense industry poses unique challenges for Israeli companies. Not just culture, but also the lack of frequent direct flights between the distant countries, and above all its unique market model. The Japanese Ministry of Economy, Trade and Industry does not manage defense procurement, but is entrusted with the supervision of sensitive technology and components, the granting of licenses and the regulation of defense transactions, and industrial policy. Defense procurement itself is carried out by the Procurement Agency in the Defense Ministry.
These two ministries not only operate in the acquisition of technologies, but are also interested in transferring production lines and technologies to Japan - similar to models all over the world. These works are carried out in Japan by giant corporations such as Mitsubishi, which deals, among other things, in the missile and space industries; Toshiba and Fujitsu, which also operate in military electronics; Kawasaki, which is a player in military shipping; and Daikin and Komatsu, which are players in the field of ammunition.
Taking into account the sophistication of Japanese industry, the SIBAT seminar included practical aspects of turning Israeli defense tech into deals in the Japanese market and an overview of the differences in business culture. At the same time, networking and B2B meetings were held between representatives of Israeli companies and Japanese representatives from the worlds of innovation, trade and investment, to examine concrete opportunities for collaboration. This, after months in which Japanese officials visited the companies in Israel.
A new program called "Bridge" was presented, for business guidance and mentoring of Israeli defense companies in the Japanese market. The program, which will last three months, is designed for a limited number of companies in each cycle, which will receive close personal mentoring from Japanese professionals and formulate a business plan for the Japanese market. At the end, an "exposure event" in Japan and face-to-face business meetings will be held.
The Japanese are interested in everything the Israeli defense market has to offer: air defense, drone defense, drone technologies, unmanned aerial vehicles, lasers, robotics, missiles, cannons, and even passive defense, since Japan has no safe rooms/shelters.
Israel is interested in Japan not only for sales. Japanese production capabilities are on a par with Germany, and financial capabilities are similar to Singapore - with both of them and Taiwan being recognized as countries where the prevailing public opinion is pro-Israel.
"Japan is an interesting country with which we can produce something significant," a senior Israeli official, who is familiar with the details, tells Globes. "They value Israeli technology and know what they are worth in terms of production and want serial production with them. They are high on Israel's priorities, but we have not yet come to any concrete agreement. There is a warm dialogue and mutual desire. It is possible that within a few months we will see the breakthrough there."
The Ministry of Defense said, "SIBAT works to connect Israeli defense companies with potential foreign partners and customers and assists companies in identifying business opportunities. SIBAT operates in accordance with the accepted procedures in each country, with the aim of cultivating successful relationships and contributing to deepening relations."
The source for comparison
The role model for Israel and Japan for cooperation is India, the biggest export market for Israel’s defense industry, with about 29% of sales in 2021-2025. The cooperation crosses all fields in defense, with production lines of each of the major Israeli defense companies on Indian soil. At the same time, the Indians are interested in as much Israeli innovation as possible that will drive Indian innovation in the defense sector.
The Israel-India flagship project is the Drishti program, which recently completed its second cycle. It is a joint R&D platform for the Ministry of Defense R&D bodies in Israel and India. The venture was established with the aim of creating a direct channel for bilateral technological-security development: India provides large-scale production infrastructure, a huge target market and access to diverse operational needs, while Israel brings the technological cutting edge and applied innovation.
Published by Globes, Israel business news - en.globes.co.il - on September 10, 2026.
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