Cyprus Positioned as New Hub for Israeli Defence Industry Expansion within EU
Israeli defence companies are seeking to establish bases within the European Union, with Cyprus emerging as a prime candidate for deeper cooperation and investment. Discussions during Israeli President Isaac Herzog’s recent visit to Nicosia revealed strong interest from Israeli firms in setting up headquarters and production facilities on the island. This development aligns with EU initiatives like the SAFE programme, aimed at boosting collective defence capabilities.
The expansion of Israeli defence production in Cyprus is expected to provide significant economic benefits, as seen in other EU countries such as Germany and Romania, which host Israeli-owned manufacturing hubs. These facilities not only support local economies but also enhance Cyprus’s own defence infrastructure, particularly in advanced technologies including cybersecurity, air defence systems, and smart munitions.
Despite political tensions between Israel and the EU, defence industry cooperation remains robust. Israeli companies like Elbit Systems and Rafael Advanced Defense Systems have secured multiple contracts across Europe, underscoring Israel’s growing role as a key supplier of cutting-edge defence technology. Cyprus could become a strategic partner in this expanding network, contributing to both economic growth and security modernization within the EU.
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