According to the deal, Italy's Ministry of Defense will purchase from Israel Aerospace Industry two Conformal Airborne Early Warning and Control Systems (aircraft with radar systems) and a surveillance satellite.

As part of the Israel Ministry of Defense's agreement with the government of Italy, IAI will manufacture and supply to the Italian Air Force two G-550 Conformal Airborne Early Warning & Control Systems (CAEW), Ground Support Systems and logistical support package totaling $750 million.

Under an additional agreement with 'Telespazio' IAI will develop, manufacture and supply an observation satellite to the Italian company, worth $182 million.

Israel's biggest export markets are the United States and the European countries followed by Southeast Asian countries and South America.

A U.S. congressional report in September 2012 ranked Israel eight among top arms exporter countries.

Recent years witnessed sharp changes in arms export worldwide, as the military budgets of many countries has shrunken due to the global economic crisis.

In May 2013, The international business consultancy Frost and Sullivan reports that over the last eight years Israeli manufacturers have sold UAVs worth more than $4.6 billion. Just more than half of the deals in 2005-12 were with European states, primarily Germany, Poland, the Netherlands, Russia and Spain.

Israel's high-tech defense industry leads the world in exporting unmanned aerial vehicles, a new study says, while UAV designers are reported to be moving toward developing drones so advanced they could replace manned aircraft.