The State of Israel is undoubtedly one of the world’s leading nations in the cyber domain. The technological expertise and extensive experience of Israeli intelligence units have positioned the country as a central player in the global cyber market. However, behind this technological success lies a complex dilemma: how to maximize economic potential without compromising national security?
The global market for information security and cyber intelligence is experiencing sustained growth. Israel, with its intelligence units’ extensive experience and technological expertise, is well-positioned to capture a significant share of this market.
The economic strength of Israel’s cyber sector is reflected in impressive deals in recent years: SentinelOne, founded in Israel, went public in 2021 with a valuation of approximately $8.9 billion; Armis raised $300 million in 2021 at a valuation of $3.4b.; and IntSights was acquired by Rapid7 in 2021 for $335m. Additional Israeli companies such as Cellebrite, the NSO Group, and Cybereason have already demonstrated global demand for Israeli technologies in this field.
However, the path is not always smooth. The affair involving the NSO Group, which was blacklisted by the United States in 2021 for selling technologies to countries with problematic human rights records, illustrates the risks associated with uncontrolled exports.
In a world where Israel has many adversaries, every intelligence technology exported today could potentially return tomorrow as a weapon directed against us. Arab nations, Turkey, and Iran are investing substantial resources in cyber capabilities, and some maintain relationships with Israel through third parties.
The current control mechanism, based on Defense Ministry approvals, faces new challenges. Technologies such as artificial intelligence for data processing or social media analysis tools can serve legitimate purposes, but can also be used for sophisticated cyberattacks.
Israel needs to develop smarter control mechanisms
The solution is not to avoid exports but to develop smarter control mechanisms. A dynamic classification system that updates according to geopolitical changes must be created, and a monitoring center should be established to track Israeli technologies exported worldwide.
Simultaneously, specialization in developing defensive technologies should be encouraged, as their risks are lower than those of offensive tools. Investment in research and development of proactive security solutions could create a new market where Israel can lead without endangering itself.
The world needs Israeli cyber technologies, and they constitute an important strategic asset for the country. The challenge is to find the right balance between realizing economic potential and maintaining national security – a balance that will require continuous strategic thinking rather than one-time solutions.
The writer is the CEO of Tech-Career.