Cooperation between Cyprus and Israel is deepening. Following reports on Monday that Cyprus is interested in a range of systems manufactured by Israeli company Rafael Advanced Defense Systems including Iron Dome, Drone Dome, and Sea Lite, it now appears that another deal is in the works. The deal, which involves Israel Shipyards and Rafael, is estimated to be worth over $100 million and entails the supply of naval vessels and weapon systems to Cyprus.
Following reports of this deal, shares of Israel Shipyards (TASE: ISHI) jumped 6% on the Tel Aviv Stock Exchange this morning. Last week, the company announced that it had signed an agreement with the Ministry of Defense to supply naval vessels and a range of services to a foreign government client, worth about €80 million.
Meanwhile, the presence of Israeli defense industries in Europe continues to expand. Earlier this month, Elbit Systems and German defense giant Diehl Defense successfully demonstrated the operational capabilities of the SkyStriker loitering munition. The live demonstration included the launch, detection, and autonomous engagement of a target at a range of 80 kilometers.
Additionally, last week, Rafael finalized a deal with the state of Lower Saxony and the Aurelius fund to acquire the Volkswagen plant in Osnabrück for the production of components for the Iron Dome system. Also Israel’s Ministry of Defense recently signed the Achilles Shield agreement with Greece, worth €3.1 billion, which includes the integration of Greek companies for work worth about €700 million.
Published by Globes, Israel business news - en.globes.co.il - on October 20, 2026.
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