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ARTICLE · 27 APRIL 2017

Israeli Cyber Is Not Dead Yet

Despite the unrest caused by the draft regulations, we at ERM think that the panic may be premature for two main reasons.

IsraelTechnology

Recent draft regulations published by the Israeli Defense Export Controls Agency (DECA), propose to increase the supervision of exported Israeli cyber systems, by requiring Israeli companies which export cyber products and services with offensive capabilities to first apply for a permit from DECA, a process similar to when exporting weapons systems.

Since its publication, the long- awaited draft regulations have put the Israeli cyber sector on alert and many of its representatives have gone on the offensive by arguing that Israel should not be the pioneer in tightening supervision of the cyber sector, warning of the potential economic consequences for the Israeli economy.

Just how substantial is the cyber sector in Israel? In 2014, Israel exported $3 billion worth of cyber products and services and the expectation was that this number would increase by nearly 10% in 2015. Furthermore, there are some 300 active cyber companies in the Israeli market including notable

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