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Home , Abraham Accords, Mossad, Shin Bet, Unit 8200

Flash Report

Repression Diplomacy: The Israeli Cyber Industry

June 2021

EXECUTIVE SUMMARY 2

INTRODUCTION 3

THE ISRAELI CYBERSECURITY INDUSTRY 4

THE PUBLIC PILLARS OF PRIVATE INDUSTRY 6

REVOLVING DOORS: and Cyber Innovation 7

IN THE PURSUIT OF KNOWLEDGE: The Role of Academia and Civilian R&D 9

A PORTAL FOR THE INDUSTRY: Government Support 11

REPRESSION DIPLOMACY: ’s Global Cyber Ties 13

THE NEW NORMAL: Cybersecurity and Israel-UAE Normalization 14 EXECUTIVE SUMMARY , the Israeli military’s signal intelli- gence unit, is the main body responsible for A major exporter, Israel is a key Israeli cyber offense. According to 8200 vet- player in the fast growing global market for erans, the unit’s intelligence is used for politi- cybersecurity products. In 2020, Israeli cy- cal persecution and to create divisions within ber firms received approximately 31% of Palestinian society in the occupied Palestinian global investment in the sector, acquisitions territory (oPt).4 But Unit 8200 also functions of Israeli cyber companies generated some as a conveyer belt for the Israeli high-tech US$4.7 billion, and Israeli cyber exports stood industry, which benefits from the commer- at US$6.85 billion.1 cialization of military knowledge, sanitized of The Israeli cyber industry is characterized by its origins in Israel’s ongoing colonial domina- strong reciprocal ties between industry, mili- tion of the Palestinian people. Over the years, tary, academia and government. Through the 8200 veterans have founded over 1,000 com- military and state-owned military industries, panies, including Checkpoint Software Tech- public research and academic institutions and nologies, NICE Systems, Palo Alto Networks, various government arms, the state assumes and Cyber Ark.5 much of the cost of human capital develop- Cyber exports are the latest chapter in Israel’s ment. long and lethal history of exporting repres- The Israeli government funnels hundreds of sive technologies to authoritarian regimes for millions of dollars into supporting, funding economic and diplomatic gains. Business and and coordinating industrial and academic re- economic ties reinforce, and at times pave search and development (R&D) and promot- the way for diplomatic relations and interna- ing the Israeli cyber industry internationally. tional cooperation, as can be seen in the -re In recent years, Israel has signed cooperation cent normalization of political and economic agreements in the field of cyber with over relations between Israel and the United Arab 2 90 states and international organizations. Emirates (UAE). Through research partnerships, Israeli univer- According to journalists, researchers and hu- sities play a major role in facilitating connec- man rights activists, Israeli cyber products tions between the Israeli industry and the rest have been used by repressive governments of the world. Israeli scientists and companies to track and detain activists, persecute LGBT participate in EU Framework Programmes people and silence political dissent. Though projects such as FP7, Horizon 2020 and Hori- Israel formally adheres to export controls on zon . Under FP7 (2007-2013) alone, Is- dual-use items regulated under the Wasse- raeli entities received over US$1.06 billion in naar Arrangement, it does not publicly dis- grants and gained over US$2.4 billion in value close information on export licenses to spe- of knowledge (IP).3 cific companies or general licensing policies,

1 The Israeli cyber industry continues to grow: Knesset Research and Information Center, 6 February record fundraising in 2020, Israel National Cyber Direc- 2014. torate, 21 January 2021. Accessed 10 May 2021. 4 Israeli intelligence veterans’ letter to Net- 2 Annual report 2019-2020, (Hebrew) Israel anyahu and military chiefs - in full, , 12 National Cyber Directorate, 27 October 2020. Ac- September 2014. cessed 10 May 2021. 5 Shezaf, H. and Jackobson, J., Revealed: Israel’s 3 Goldschmidt, R., Participation of the State of Cyber-spy Industry Helps World Dictators Hunt Dissi- Israel in the Research and Development Framework dents and Gays, , 20 October 2018. Programme of the , (Hebrew) The

2 | Repression Diplomacy : The israeli Cyber Industry undercutting prospects of accountability.6 ular mobilizations. Such surveillance has been shown to lead to arbitrary detention, , and possibly to extrajudicial killings.11 INTRODUCTION It is within this context that Israel, a major sur- Israel’s cybersecurity industry is part of a veillance and security exporter and close ally booming global industry that pledges to “se- of the , has positioned itself as a cure your everything,” as one industry lead- key player. Israel considers cyber to not only er put it.7 Cyber technologies increasingly be an important driver of economic growth, saturate practically all spheres of economic but also a key trade commodity that can be and social activity. Whereas many industries leveraged to achieve political objectives, and were hard hit by the Covid-19 pandemic, the to secure and advance its international posi- global cybersecurity industry saw a rise in de- tion. mand as individuals, businesses, and public Leveraging trade for political ends is not agencies shifted their activities to the digi- unique to Israel, nor to cyber products. This tal sphere. Broadly speaking, the market for has historically been the case with Israeli ex- the industry has expanded significantly in re- ports of agricultural technology to Central 8 cent years; rising from US$71 billion in 2014 American dictatorships,12 and remains pow- 9 to US$126 billion in 2020 . It is projected to erfully so for Israel’s extensive global arms continue to grow substantially in the coming exports.13 However, the meteoric rise of the 10 years, exceeding US$207 billion by 2024. Israeli cyber industry over the past decade Governments worldwide are also increas- has made it one of the top trade commodities ingly preoccupied with developing their cy- through which Israel builds its global power. ber capabilities. As cyber warfare becomes The combined value of Israeli defensive and an integral part of, and occasional substitute offensive cyber exports is estimated at US$10 for traditional warfare, states are engaging in billion a year, exceeding the total value of Is- an ever-intensifying cyber arms race. Cyber raeli military exports.14 The ubiquity of cyber technologies such as computer interference, in the digital age, and the ease with which it phone hacking, and network surveillance are can be used by those in power for targeted also increasingly utilized by repressive regimes and makes it strategically to monitor and surveil their own populations, valuable to states while posing a major threat target political dissidents, and suppress pop- to individuals and communities. As this report shows, the rise of Israel’s cyber 6 UN Human Rights Council, Surveillance and human rights. Report of the Special Rapporteur on the 11 UN Human Rights Council, Surveillance and promotion and protection of the right to freedom of human rights. Report of the Special Rapporteur on the opinion and expression, 28 May 2019, A/HRC/41/35. promotion and protection of the right to freedom of 7 Software TechnologiesForm 20-F opinion and expression, 28 May 2019, A/HRC/41/35. for the fiscal year ended December 31, 2019, p. 20. 12 Rubenberg, Cheryl A., “Israeli foreign policy 8 Tsipori, T., Israeli cybersecurity grabs 8% glob- in Central America,” Third World Quarterly 8.3 (1986): al market share, Globes, 4 April 2016. 896-915. 9 Mena-Kalil, A. and Barel Handeli, A., An in- 13 Halper, J., (2015) War against the People: Is- vestment guide to cyber: Which companies should be rael, the and Global Pacification. London: included, (Hebrew) Globes, 7 January 2021. Pluto Press. 10 Forecast: Information Security and Risk 14 Limor, Y., Cyber King: The next generation of Management, Worldwide, 2018-2024, 2Q20 Update, defense of the land, (Hebrew) Israel Hayom, 10 Sep- Gartner Research, 28 July 2020. tember 2020.

3 | Repression Diplomacy : The israeli Cyber Industry industry is not the product of the invisible of cyber technologies, and examines the ways hand of the market. Characterized by strong cyber is mobilized by the state to enhance Is- reciprocal ties between industry, military, ac- rael’s political power, focusing on the UAE as ademia and government, the cyber sector has a case study. been shaped by Israel’s development as a set- The report is based on the collection and tler colonial project and an occupying military analysis of information from various public power. The private sector benefits, not only sources, such as publications by state author- from extensive government support, foreign ities (including Israeli government ministries), investment, and state funded military and industry reports, company publications and academic R&D, but also from the commer- and other media sources. cialization of military knowledge developed in the context of a prolonged and belligerent military occupation. Moreover, it benefits THE ISRAELI CYBERSECURITY from the market value generated by Israel’s INDUSTRY reputation for military and security know- how, sanitized of the ongoing colonial domi- The high-tech industry is one of the main nation of the Palestinian people. growth engines of the Israeli economy. In 2020, it attracted US$10.2 billion worth The state benefits from the commercial suc- of investment through 607 deals16 and cess of the Israeli cyber industry in econom- accounted for 43% of all Israeli exports.17 15 ic terms through the creation of high-pay- On average, high-tech contributes to ing jobs and taxation on company exits in around 12% of Israel’s GDP.18 As of the the form of Initial Public Offerings (IPO) and end of 2019, some 321,000 workers, rep- Mergers and Acquisitions (M&A). It also ben- resenting about 9.2% of all Israeli em- efits in political terms, as business and eco- ployees, were employed in high-tech.19 nomic ties reinforce, and at times pave the way for diplomatic relations and international It is a highly globalized industry, dominated cooperation. The recent normalization of po- by foreign investors and the strong presence litical and economic relations between Isra- of multinationals. In 2020, there were 387 el and the UAE provides an instructive case active multinational corporations operating study for examining the role of cyber within in Israel with a workforce of approximate- 20 broader economic and political dynamics. ly 68,000 people. The majority of multina- In the sections that follow, Who Profits sheds 16 The Israeli Tech Review 2020. IVC Research light on Israel’s cybersecurity industry, includ- Center and Meitar Law Offices, January 2021. 17 Israeli innovation globally, (Hebrew) Israel ing the role of the military and military in- Innovation Authority. Accessed 10 May 2021. dustries, government agencies and academic 18 Getz, D., Buchnik, Z. and Zatcovetsky, I., Met- institutions in the production and marketing rics for science, technology and innovation in Israel: Data infrastructure. Final report - Year II, (Hebrew) Samuel Neaman Institute for National Policy Research. November 2018. 15 It should be noted that high-tech is a major 19 2019 High-Tech Human Capital Report, Israel driver of inequality within Israeli society and that Innovation Authority, 26 February 2020. Accessed 10 economic benefits do not trickle down to the gener- May 2021. al population. For a critical discussion of Israeli high 20 Multinational Corporations Contribution to tech see: Getzoff, Joseph F. Start-up nationalism: The the Israeli Tech Ecosystem, Review by IVC Research rationalities of neoliberal .Environment and Center. IVC Research Center and Israel Advanced Tech- Planning D: Society and Space 38.5 (2020): 811-828.

4 | Repression Diplomacy : The israeli Cyber Industry tionals are US-based (60%), followed by Ger- at 17%, compared with 1.7% in the US.26 In many, the UK, China, and Japan.21 Venture 2012, 37% of patents on Israeli innovation Capital (VC) is the main source of capital for were foreign-owned.27 Israeli tech, accounting for 88% of all capital Within the Israeli high-tech industry, cyber- 22 raised by the industry in 2020. VC investors security is a prominent sub-field, accounting are overwhelmingly foreign, making up 85% for 30% of all capital raised by the industry in of all VC investment. A breakdown of all cap- 2020.28 According to a 2019 report by the IVC ital investments in Israeli high-tech between Research Center, there are some 421 active 2013 and 2018 by region showed that most cyber companies in Israel, 15% of whom are capital came from the US (35%), followed by engaged in information protection, 9% in net- Israel (30%), China (4%), Germany (3%), the work security and 7% in cyber intelligence, a 23 UK (3%), and Canada (2%). US buyers also comparatively high figure.29 At the end of dominate the M&A of Israeli companies; with 2018 about 20,500 workers were employed in a total value of US$7 billion in high-tech M&A the Israeli cyber sector, approximately half of compared with US$480 million by Israeli ac- them in start-up companies, 4,500 in foreign 24 quirers in 2020. R&D centers and 5,900 in the public sector.30

T h e n u m b e r o f c y b e r c o m p a n i e s o p e r a t i n g i n I s r a e l m o r e t h a n d o u b l e d b e t w e e n 2 0 1 0 a n d 2 0 1 9 a n d t h e a m o u n t o f p r i v a t e c a p i t a l r a i s e d b y t h e i n d u s t r y i n c r e a s e d b y 2 , 3 0 0 % . I n 2 0 2 0 , I s r a e l i c y b e r c o m p a n i e s r e c e i v e d a p p r o x i m a t e l y 3 1 % o f g l o b a l i n v e s t m e n t i n t h e s e c t o r a n d e x p o r t s s t o o d a t U S $ 6 . 8 5 b i l l i o n .

Foreign funding also plays an important part The value of gross domestic product from in supporting Israeli technological innovation. Israeli employees working in the cyber R&D In 2011, 47% of gross domestic expenditure centers of multinationals located in Israel on R&D (GERD) in Israel was financed from amounted to US$900 million in 2017.31 25 abroad, compared with 28% in 2007. Expen- The cyber industry has expanded dramatically diture on R&D in multinational companies in since 2010. The number of cyber companies Israel in terms of percentage of yields stands operating in Israel more than doubled be- tween 2010 and 2019, the amount of private capital raised by the industry increased by nology Industry, December 2020. Accessed 10 May 2021. 2,300%, and cyber companies accounted for 21 Multinational Corporations Contribution to the Israeli Tech Ecosystem, Review by IVC Research Center. December 2020, IVC Research Center and 26 High Tech in Israel. Israel Advanced Technology Industry. Accessed 10 May 27 High Tech in Israel. 2021. 28 Ziv, A., 2020 was a record year for Israeli 22 The Israeli Tech Review 2020. IVC Research cyber - and 2021 may break it, (Hebrew) TheMarker, Center and Meitar Law Offices, January 2021. 21 January 2021. 23 Foreign High-Tech Activity in Israel: Facts & 29 A new report: the Israeli cyber industry Figures 2018, IVC Research Center, November 2018. jumps - raised 4 billion dollars in the last five years, 24 The Israeli Tech Review 2020. IVC Research (Hebrew) Israel National Cyber Directorate. 23 June Center and Meitar Law Offices, January 2021. 2019. Accessed 10 May 2021. 25 Tabansky, L. and Ben Israel, I. Cybersecurity in 30 Ibid. Israel. Vol. 598. New York: Springer, 2015. 31 Ibid.

5 | Repression Diplomacy : The israeli Cyber Industry 15% of all Israeli high-tech acquisitions, total- THE PUBLIC PILLARS OF ing US$10 billion.32 Between 2011 and 2019, PRIVATE INDUSTRY cyber exports increased by 600%, reaching Israel’s emergence as a leading global US$6.5 billion in 2019.33 purveyor of cyber technologies is not the The industry continued to experience record result of invisible market forces, but is breaking growth in 2020. Israeli cyber com- rather the outcome of Israel’s particular panies received approximately 31% of global development as a settler colonial project, investment in the sector, compared with 22% and an occupying military power. the previous year.34 Cyber exports stood at The Israeli state actively supports the high- US$6.85 billion, accounting for approximate- tech industry, and cyber tech in particular, ly 11% of all global cyber sales.35 Israeli cy- through tax exemptions, grants, subsidies, ber companies raised US$2.9 billion through and liberalized export and licensing policies. over 100 deals, a 70% increase compared Through the Israel Innovation Authority, it to 2019.36 Over 20 acquisitions of Israeli cy- invests about NIS 1.5 billion annually in high- ber companies were made at an estimated tech companies in the form of grants and ex- US$4.7 billion. These included the acquisition empts them from taxes through the Law for of Checkmarx by Hellman & Friedman for the Encouragement of Capital Investments.38 US$1.15 billion, Armis by CapitalG for US$1.1 billion, and CyberX by Microsoft for US$165 Moreover, through the military and state- million.37 owned military industries, public research and academic institutions and various- gov ernment arms, the state assumes much of the

W h i l e t h e s o - c a l l e d “ I s r a e l i e x p e r i e n c e ” o f d e p l o y i n g s e c u r i t y t e c h n o l o g i e s l o o m s l a r g e i n t h e c o r p o r a t e a n d s t a t e m a r k e t i n g o f I s r a e l i c y b e r , t h e p o l i t i c a l r e a l i t i e s i n w h i c h i t i s g r o u n d e d a r e o b s c u r e d .

cost of human capital development and R&D. In particular, Israel’s prolific cyber industry 32 2019 in the cyber industry - Summary of the owes much of its existence to the role played year and the decade, (Hebrew) Israel National Cyber Directorate, 27 January 2020. Accessed 10 May 2021. by the military sector in shaping the Israeli 33 Ibid. high-tech sector and incubating tech entre- 34 Ibid. The Israeli cyber industry continues to preneurship. Academia and government also grow: record fundraising in 2020, Israel National Cyber Directorate, 21 January 2021. Accessed 10 May 2021. promote the industry through joint research 35 Ziv, A. 2020 was a record year for Israeli cyber collaborations and international partnerships. - and 2021 may break it, (Hebrew) TheMarker, 21 January 2021. 36 The Israeli cyber industry continues to grow: record fundraising in 2020, Israel National Cyber Direc- 38 Naftali, Y.,High tech is the growth engine torate, 21 January 2021. Accessed 10 May 2021. of the economy - but there are no compartments 37 The Israeli Tech Review 2020. IVC Research attached, (Hebrew) TheMarker. 16 September 2018. Center and Meitar Law Offices, January 2021.

6 | Repression Diplomacy : The israeli Cyber Industry REVOLVING DOORS: Military operations.42 According to international sourc- Intelligence and Cyber es, the unit participated in major cyberattacks Innovation involving and sabotage of industri- al facilities, the best known of which is Stux- A central pillar of Israeli cyber innovation is net, a digital malware developed jointly with the Israeli military, portrayed in the promo- the US National (NSA) which tional literature of Israeli cyber companies targeted Iranian nuclear facilities.43 is and government officials as an incubator for considered by some to be the world’s first cy- cybersecurity talent, an unfailing source of ber weapon.44 eager young minds equipped with hands-on experience, networking skills, and technical Israeli military intelligence has long played a know-how. As Joseph Getzoff recently ob- major role in maintaining military and political served, in the discourse on Israeli tech, “mili- control over the occupied Palestinian popula- tary service is hardly about military endeavors tion. In a 2014 open letter to the Israeli Prime at all, but instead serves as a training course Minister and military chiefs, intelligence vet- for aspiring start-up entrepreneurs.”39 While erans stated that Palestinians in the oPt are the so-called “Israeli experience”40 of deploy- “completely exposed” to Israeli surveillance, ing security technologies looms large in the and that intelligence gathered by Unit 8200 is corporate and state marketing of Israeli cyber, used “for political persecution and to create the political realities in which it is grounded divisions within Palestinian society by recruit- are obscured. Conspicuously absent are those ing collaborators and driving parts of Pales- 45 on the receiving end of Israel’s military-indus- tinian society against itself.” The unit also trial complex, the Palestinians living under has its own combat division, which is involved Israel’s prolonged military occupation and in military operations in the oPt and the oc- siege. cupied Syrian Golan. Combat intelligence soldiers were reportedly involved in a third The Israeli military operates in the cyber do- of the mass arrests carried out by the Israe- main through two units: C4I Directorate and li military in the occupied during Unit 8200. C4I, which operates under the the summer of 2014.46 Unit 8200 accounts for military’s Computer Service Directorate, is responsible for network security within the 42 Cordey, S., The Israeli Unit 8200–An OSINT- based study: Trend Analysis, ETH Zurich, 2019. Israeli military, as well as for the development 43 Frei, J., Israel’s National Cybersecurity and of ICT systems infrastructure, software, and Cyberdefense Posture: Policy and Organizations, ETH cryptographic foundations for the military.41 Zurich, 2020. Tabansky, L. and National Cyber Defense.Connections 19.1 (2020): 45- Unit 8200, the Military Intelligence Director- 62. Other suspected Israeli military cyber operations ate’s signal intelligence collection and code include Flame, a cyberespionage malware with targets decryption unit, carries out offensive cyber in Israel, the oPt and , and Duqu, which targeted industrial systems in a dozen countries. 44 Franceschi-Bicchierai, L., The History of Stuxnet: The World’s First True Cyberweapon, Mother- 39 Getzoff, Joseph F. Start-up nationalism: The board: Tech by Vice, 9 August 2016. rationalities of neoliberal Zionism.Environment and 45 Israeli intelligence veterans’ letter to Net- Planning D: Society and Space 38.5 (2020): 811-828. anyahu and military chiefs - in full, The Guardian, 12 40 See Gordon, N. The Political Economy of Isra- September 2014. el’s Security. 2009. 46 Ofer, Y., 8200 combatants reveal: This is how 41 Tabansky, L. Israel Defense Forces and Nation- we assassinated terrorists in Pillar of Defense, (He- al Cyber Defense. Connections 19.1 (2020): 45-62. brew) Makor Rishon, 8 October 2014.

7 | Repression Diplomacy : The israeli Cyber Industry U n i t 8 2 0 0 a l s o f u n c t i o n s a s a t r a i n i n g g r o u n d a n d c o n v e y e r b e l t f o r t h e I s r a e l i t e c h i n d u s t r y . O v e r t h e y e a r s , 8 2 0 0 v e t e r a n s h a v e f o u n d e d o v e r 1 , 0 0 0 c o m p a n i e s , i n c l u d i n g C h e c k p o i n t S o f t w a r e T e c h n o l o g i e s , N I C E S y s t e m s , P a l o A l t o N e t w o r k s , a n d C y b e r A r k . some 90% of all intelligence material collect- made over NIS3 billion in exits over a period ed in Israel, meaning it is involved in virtually of five years.51 all major operations of the and the Unit 8200 also acts as an incubator for tech 47 Bet. entrepreneurship, investing in projects de- The significance of Unit 8200, however, is not veloped by soldiers in the unit. Such is the limited to its role in military operations. The case of former 8200 captain Barak Perelman, unit also functions as a training ground and founder of the cybersecurity start-up Indegy, conveyer belt for the Israeli tech industry.48 which specializes in critical infrastructure pro- With at least 5,000 soldiers on active duty, tection. According to Forbes, in order to re- 8200 is the largest unit in the Israeli military. tain Perelman in the unit, his superiors agreed An average service time of four years ensures to invest manpower in an innovation project a continuous flow of veterans who are both he developed, a situation Perelman referred highly skilled and in high demand by the pri- to as “’a win-win’”.52 Perelman’s Indegy was vate sector. Over the years, 8200 veterans later sold to the US-based company Tenable, have founded over 1,000 companies, includ- which opened an Israeli office based on that ing Checkpoint Software Technologies, NICE acquisition.53 49 Systems, Palo Alto Networks, and Cyber Ark. The Israeli Ministry of Defense, the Direc- One study found that of 2,300 Israelis who torate for Defense R&D (DDR&D), and the founded 700 Israeli cyber firms, 80% were air and ground forces of the Israeli military, 50 graduates of Unit 8200. together with iHLS Startup Accelerator also Other technological units of the Israeli mil- launched INNOFENSE – a start-up accelerator itary also funnel human capital and military for dual-use technological projects in the ci- know-how into the private sector. For in- vilian and military sectors.54 stance, veterans of Lotem, a C4I unit respon- Since intelligence veterans, like all Israeli vet- sible for introducing advanced technology erans, continue to serve as reserve soldiers into the Israeli military’s combat operations, into their early forties; they maintain contin- ual privileged access to technological devel- 47 Behar, R., Inside Israel’s Secret Startup Ma- opments within the military, as well as to new chine, Forbes, 11 May 2016. 48 Gordon, N. The Political ’s Homeland Security. 2009. 51 Five facts about Lotem Unit, Israel Defense 49 The hi-tech industry in Israel, Invest in Israel, Forces [sic]. Accessed 10 May 2021. Israeli Ministry of Economy and Industry, 2017, p. 23. 52 Behar, R., Inside Israel’s Secret Startup Ma- Choudhury, S. R., Former cyber-intelligence sleuths for chine, Forbes, 11 May 2016. Israel now work to uncover malicious hackers, CNBC, 11 May 2017. 53 Zerachovit, O., US co Tenable buys Israeli cy- 50 Shezaf, H. and Jackobson, J., Revealed: Israel’s bersecurity startup Indegy, Globes, 3 December 2019. Cyber-spy Industry Helps World Dictators Hunt Dissi- 54 iHLS INNOFENSE, iHLS Startups Accelerator. dents and Gays, Haaretz, 20 October 2018. Accessed 10 May 2021.

8 | Repression Diplomacy : The israeli Cyber Industry talent for recruitment. Some are retained in alongside the military and military indus- their units as technicians or developers, be- tries.58 coming conduits between the private sector, Through their international research partner- the military and academia.55 ships and cooperation agreements, Israeli uni- versities also facilitate connections between Israeli industry and the rest of the world. In IN THE PURSUIT OF 2011, the Technion – Israel Institute of Tech- KNOWLEDGE: The Role of nology and Cornell University consortium Academia and Civilian R&D won an international competition to establish an applied science campus in New York City.59 Israeli public research universities are also University and Tsinghua University in deeply involved in the militarized character of Beijing signed an agreement to invest US$300 Israel’s human capital development through million in a joint nanotechnologies research the Academic Reserves (Atuda) and Talpiot project through a newly established center.60 programs. The Academic Reserves track en- The Technion also developed a technological ables high school students to complete a uni- school in China with the Guangdong Province versity degree before enlisting in the military. Government, the Shantou Municipal Govern- Graduates then serve in positions that utilize ment and Shantou University.61 their academic training, typically extend- ing their compulsory service by three to five In 1996, Israel joined the European Frame- years while receiving a full salary and ben- work Programme for Research and Techno- efits.56 Talpiot is an elite 40-month training logical Development as the only non-Euro- program run by the DDR&D.57 Both programs pean member. Israel regards this partnership 62 have a considerable spillover effect over Isra- as the “flagship of Israel-EU relations,” en- el’s cyber industry, with hundreds of trained abling Israeli entities to establish research engineers, scientists and programmers enter- and business ties with European institutions,

I s r a e l i p u b l i c r e s e a r c h u n i v e r s i t i e s a r e d e e p l y i n v o l v e d i n t h e m i l i t a r i z e d c h a r a c t e r o f I s r a e l ’ s h u m a n c a p i t a l d e v e l o p m e n t t h r o u g h t h e A c a d e m i c R e s e r v e s ( A t u d a ) a n d T a l p i o t p r o g r a m s . T h r o u g h t h e i r i n t e r n a t i o n a l r e s e a r c h p a r t n e r s h i p s a n d c o o p e r a t i o n a g r e e m e n t s , t h e y a l s o f a c i l i t a t e c o n n e c t i o n s b e t w e e n I s r a e l i i n d u s t r y a n d t h e r e s t o f t h e w o r l d . ing the workforce each year. 58 Ibid. Additionally, state military R&D, which is es- 59 Cornell wins NYC Tech Campus bid, Cornell timated at 1.5% of Israel’s GDP, is frequently Chronicle, 19 December 2011. The proposal included a carried out in civilian research facilities. Israeli strong industry component, including legal support for start-ups, pre-seed financing programs, and an on-site academic institutions are involved in military tech transfer office structured to facilitate start-up R&D projects coordinated by the DDR&D, formation and technology licensing. 60 Tabansky, L. and Ben Israel, I. Cybersecurity in Israel. Vol. 598. New York: Springer, 2015. 55 Tabansky, L. and Ben Israel, I. Cybersecurity in 61 Ibid. Israel. Vol. 598. New York: Springer, 2015. 62 Innovation in Israel: A snapshot, (Hebrew) Is- 56 Ibid. rael Innovation Authority (formerly Office of the Chief 57 Ibid. Scientist). 2015, p. 34.

9 | Repression Diplomacy : The israeli Cyber Industry companies and clients. The Israel-Europe Re- Systems, a subsidiary of the state owned Israel search & Innovation Directorate (ISERD), an Aerospace Industries (IAI), is the only non-Eu- inter-ministerial directorate operated through ropean member of the Hermeneut consor- the Israel Innovation Authority, is the Nation- tium, a Horizon 2020 cyber risk assessment al Contact Point for Israeli participation in the project.66 Israeli cyber firm Odix was awarded Framework Programme. It is also responsible a US$2.4 million grant in 2019 in the frame- for promoting Israeli participation in bilateral work of Horizon 2020.67 Incidentally, Odix was and multilateral research collaborations with founded by two Israeli military veterans, Oren European states. Eitan, former commander of the Center of En-

A s p a r t o f t h e E U ’ s F P 7 , I s r a e l i b o d i e s p a r t i c i p a t e d i n p r o j e c t s w i t h a n o v e r a l l b u d g e t o f U S $ 1 2 b i l l i o n , a n d t h e e s t i m a t e d v a l u e o f k n o w l e d g e ( I P ) g a i n e d b y t h e I s r a e l i i n d u s t r y t h r o u g h i t s p a r t i c i p a t i o n i n F P 7 p r o j e c t s e x c e e d s U S $ 2 . 4 b i l l i o n .

As part of the EU’s Seventh Framework Pro- cryption and Information Security (Matzov) gramme (FP7), which lasted from 2007 to and Dudu Geva, former commander of the 2013, Israeli entities received over US$1.06 C4I’s School of Communications, ICT and Cy- 68 billion in grants, 63% more than Israel invested ber (Bahad 7). Another example is the state- in FP7.63 Israeli bodies participated in projects owned Israel Electric Company (IEC), which with an overall budget of US$12 billion, and participated in several international projects the estimated value of knowledge (IP) gained on cybersecurity and Industrial Controls Sys- by the Israeli industry through its participa- tems (ICS) security under the framework of 69 tion in FP7 projects exceeds US$2.4 billion.64 FP7 and Horizon 2020. In 2014, Israel joined Horizon 2020, the EU program that succeeded FP7. Between 2014 and the first half of 2017, Israeli participants were awarded US$597 million in grants.65 Israeli cyber researchers and companies are among the beneficiaries of such international funding programs. The Cyber Division of ELTA

63 Israel, Annexation, and the EU’s Research and Development Program “Horizon”, Mitvim – The 66 Hermeneut – Horizon 2020 Consortium Israeli Institute for Regional Foreign Policies, July 2020. Cyber Risk Assessment for Intangible Assets, Israel Accessed 10 May 2021. Aerospace Industries. Accessed 10 May 2021. 64 Goldschmidt, R., Participation of the State of 67 Orbach, M. Former Matzov commander’s Israel in the Research and Development Framework Odix raised $2.1 million, (Hebrew) Calcalist, 4 March Programme of the European Union, (Hebrew) The 2020. Knesset Research and Information Center, 6 February 68 Ibid. 2014. 69 Israel Electric Company reveals cyber activity 65 Honoring Israeli companies that won Horizon data in anticipation of cybertech international cyber 2020 grants, Israeli Ministry of Science and Technolo- conference, (Hebrew) 22 March 2015. Accessed 10 gy, 22 March 2018. Accessed 10 May 2021. May 2021.

10 | Repression Diplomacy : The israeli Cyber Industry A PORTAL FOR THE INDUSTRY: digital platforms for the industry to showcase Government Support its products and share knowledge, includ- ing Cybernet, an anonymous secure infor- Through the Israel National Cyber Director- mation exchange platform for sharing cyber ate (INCD), the Israel Innovation Authority, threats; 74 Showroom, a risk exposure evalu- the Israeli Ministry of Economy and Industry, ation tool for organizations and recommends the Cyber Unit of the Israel Export Institute, ways to minimize exposure; Marketplace, a and Israeli embassies worldwide, the Israeli platform launched specifically in response government funnels hundreds of millions of to the Covid-19 pandemic as a tool for Israe- dollars into what it terms “capacity building” li cybersecurity vendors to present products in cyber – building the technological and sci- and services,75 and Corona.net, a system de- entific backbone of its cyber power through veloped by Elta Systems based on Cybernet, supporting, funding and coordinating indus- which was presented by Israeli Prime Minister trial and academic R&D and promoting the Binyamin Netanyahu during an international Israeli cyber industry internationally. video conference on the second wave of the Formed from a 2017 merger between the Na- pandemic.76 tional Cyber Security Authority and the Israel Through the INCD, Israel has signed cooper- National Cyber Bureau,70 the INCD is the chief ation agreements in the field of cyber with governmental organ tasked with organizing over 90 states and international organiza- cybersecurity in Israeli civilian cyberspace. It tions.77 These include a partnership with the is one of only four bodies directly under the Inter-American Development Bank (2016), tri- Prime Minister’s Office, the other three being lateral and bilateral agreements with Greece the Israel Security Agency (), the In- and (2018 and 2020), a memorandum stitute for Intelligence and Special Operations of cooperation with Japan (2018), Memoran- (Mossad) and the Atomic Energy Committee. dums of Understanding with Australia, Brazil, 71The INCD developed out of the Shin Bet di- Croatia and Romania (2019), and operational vision for the protection of critical infrastruc- cooperation agreements with India (2018 and ture and its current head, Yigal Una, is a for- 2020).78 Agreements are frequently accom- mer Shin Bet operative.72 The INCD serves as a “portal for the Israeli National Cyber Directorate, 27 October 2020. industry vis-à-vis international clients,” -mar 74 Cybernet - the world’s first social network for information exchange on cyber-attacks, Israel National keting a “complete package of knowledge Cyber Directorate, 16 January 2020. Accessed 10 May and strategic, regulatory and operational ex- 2021. perience, together with technological and in- 75 Participation in a ‘Marketplace’ of Cybersecu- rity Solutions for the Coronavirus Crisis, Israel National 73 dustrial solutions.” It operates a number of Cyber Directorate, 8 April 2020. Accessed 10 May 2021. 76 CoronaNet – a platform for sharing informa- 70 Government Resolution 3720, (Hebrew) tion between countries on the fight against the virus, Israeli Prime Minister’s Office, 17 December 2017. Israel National Cyber Directorate, 12 November 2020. 71 Frei, J., Israel’s National Cybersecurity and Accessed 10 May 2021. Cyberdefense Posture: Policy and Organizations, ETH 77 Annual report 2019-2020, (Hebrew) Israel Zurich, 2020. National Cyber Directorate, 27 October 2020. Israel 72 Limor, Y., Cyber King: The next generation of National Cyber Directorate, 12 November 2020. Ac- defense of the land, (Hebrew) Israel Hayom, 10 Sep- cessed 10 May 2021. tember 2020. 78 For the first time, cyber cooperation agree- 73 Annual report 2019-2020, (Hebrew) Israel ment in the Greece-Cyprus-Israel trilateral summit,

11 | Repression Diplomacy : The israeli Cyber Industry panied by commercial collaborations such as flagship project for public-private cybersecu- industry fairs,79 business presentations80 and rity collaboration. Located in the city of Bir private sector delegations organized by the al-Saba (Beer Sheva) in the Naqab (Negev) Israeli Ministry of Economy and Industry.81 region, it is home to the national Computer Emergency Response Team (CERT-IL), built

T h r o u g h t h e I N C D , I s r a e l h a s s i g n e d c o o p e r a t i o n a g r e e m e n t s i n t h e f i e l d o f c y b e r w i t h o v e r 9 0 s t a t e s a n d i n t e r n a t i o n a l o r g a n i z a t i o n s . C y b e r S p a r k , I s r a e l ’ s f l a g s h i p p r o j e c t f o r p u b l i c - p r i v a t e c y b e r s e c u r i t y c o l l a b o r a t i o n , i s h o m e t o s e v e r a l m u l t i n a t i o n a l c o m p a n i e s , i n c l u d i n g O r a c l e , L o c k h e e d M a r t i n , I B M , D e l l , a n d D e u t s c h e T e l e k o m .

The CyberSpark cyber innovation arena, an by an industrial consortium led by the state- industrial park launched in 2014, is Israel’s owned military corporation Rafael Advanced Defense Systems,82 as well as to several sec- (Hebrew) Israel National Cyber Directorate, 20 Decem- ber 2018. Accessed 10 May 2021. Joint statement on toral CERTs (e.g. finance, telecommunications cybersecurity signed between Greece and Israel, Israel and energy). Several multinational compa- National Cyber Directorate, 16 June 2020. Israel Na- nies, including Oracle, Lockheed Martin, IBM, tional Cyber Directorate, 20 December 2018. Accessed 10 May 2021. For the first time, cooperation agree- Dell, and Deutsche Telekom have also estab- ment for information exchanges and R&D collabora- lished a presence in CyberSpark.83 tions in the field of cyber between Israel and Japan, Israel National Cyber Directorate, 29 November 2018. The state encourages industry participation Accessed 10 May 2021. Israeli-Australian cooperation through initiatives such as government fi- in the fields of cyber, Israel National Cyber Directorate, nanced innovation arenas and laboratories,84 29 January 2019. Accessed 10 May 2021. Schneider, T., Brazil and Israel signed a series of cooperation agree- 82 Tabansky, L., Israel Defense Forces and Na- ments today, (Hebrew) Globes, 31 March 2019. Mem- tional Cyber Defense.Connections 19.1 (2020): 45-62. orandum of understanding for cooperation in the field 83 Frei, J., Israel’s National Cybersecurity and of cyberdefense between Israel and Croatia, (Hebrew) Cyberdefense Posture: Policy and Organizations, ETH Israel National Cyber Directorate, 12 September 2019. Zurich, 2020. PayPal closed its office in Beer Sheva in Accessed 10 May 2021. Memorandum of under- 2017. Perlov, N. and Cohen, H., Case study: Gav Yam standing for cooperation in the field of cyberdefense Negev High Tech Park, (Hebrew) Maoz Knowledge and between Israel and Romania, (Hebrew) Israel National Strategy Center, 4 November 2019. Cyber Directorate, 6 June 2019. Accessed 10 May 84 CyberSpark includes a laboratory for testing 2021. India and Israel to expand cooperation in cyber, industrial control systems, established by the INCD and (Hebrew) Israel National Cyber Directorate, 27 October Israeli Ministry of Energy, a cyber innovation arena for 2020. Accessed 10 May 2021. transportation to be built by the INCD and the Israeli 79 For the first time, cyber cooperation agree- Ministry of Transportation for NIS 18 million, and a fin- ment in the Greece-Cyprus-Israel trilateral summit, tech cyber laboratory to be built by a private consor- (Hebrew) Israel National Cyber Directorate, 20 Decem- tium owned by MasterCard and Enel X with financing ber 2018. Accessed 10 May 2021. from the INCD, Israel Innovation Authority, and the 80 Memorandum of understanding for cooper- Ministry of Finance for a concession period of 3 years. ation in the field of cyberdefense between Israel and Fintech lab to be established in Beer Sheva, (He- Romania, (Hebrew) Israel National Cyber Directorate, 6 brew) Israel National Cyber Directorate, 4 May 2020. June 2019. Accessed 10 May 2021. Accessed 10 May 2021. Innovation arena for cyberde- 81 Zened, L., Israel’s cyber warriors enter Japan, fense in transport to be established in the Beer Sheva (Hebrew). , 1 December 2017. For the first time: area, (Hebrew) Israel National Cyber Directorate, 20 An Israeli cyber delegation visited India, (Hebrew) December 2018. Accessed 10 May 2021. Melnitcki, Israeli Ministry of Economy and Industry, 23 December G. A new cyber lab in Beer Sheva will test threats to 2019. Accessed 10 May 2021.

12 | Repression Diplomacy : The israeli Cyber Industry a cyber incubator supported by the Israel Colombia, Uganda, Nigeria, Ecuador, and the Innovation Authority, a tax incentivized R&D UAE.89 Some of the buyers were countries hub85 and annual grants of NIS 13 to 20 mil- that do not have official diplomatic relations lion to incentivize employment in cyber in Bir with Israel. According to testimonies, Israeli al-Saba.86 In 2019, the INCD hosted over 150 products enabled governments to track and foreign delegations in the national CERT in -Cy detain activists, persecute LGBT people and berSpark.87 The project is also meant to ben- silence political dissent.90 Even when abuses efit from the planned relocation of the Israeli were publicly revealed, Israeli companies did military intelligence and technological units not halt the sale of espionage products.91 88 to Bir al-Saba, set to be complete in 2026. Human rights attorney Eitay Mack has argued that Israeli cyber firms should be seen as im- plementing state policy, and not merely fol- REPRESSION DIPLOMACY: lowing their private economic interests.92 Ac- Israel’s Global Cyber Ties cording to Mack; “Israel has so much military Israel has a long and lethal history of sensitivity” that cyberweapon sales are effec- exporting repressive technologies to re- tively “military agreements between govern- gimes guaranteed to put them to their ments.”93 worst possible use, reaping both eco- The Special Rapporteur on nomic and diplomatic profits in the pro- the promotion and protection of the right to cess. Cyber exports are the latest chapter freedom of opinion and expression noted in in this history. a 2019 report that although Israel formally Relying on 100 sources from 15 countries, a adheres to export controls on dual-use items 2018 investigation by the Israeli regulated under the Wassenaar Arrange- Haaretz found that private Israeli firms sold ment, its enforcement of these controls is cyber intelligence and espionage technol- “shrouded in secrecy.”94 As Israel’s Defense ogies to a long list of countries with human Export Controls Agency (DECA) does not pub- rights records that are patchy at best, includ- licly disclose information on export licenses ing: , Indonesia, Angola, Mozambique, granted to specific companies or on its gener- the Dominican Republic, , Swazi- al licensing policies, there is no real possibility land, Botswana, Bangladesh, El Salvador, Pan- of accountability.95 ama, Nicaragua, Malaysia, Vietnam, Mexico, 89 Shezaf, H. and Jackobson, J., Revealed: Israel’s Uzbekistan, Kazakhstan, Ethiopia, South Su- Cyber-spy Industry Helps World Dictators Hunt Dissi- dan, Honduras, Trinidad and Tobago, Peru, dents and Gays, Haaretz, 20 October 2018. 90 Ibid. 91 Ibid. industrial control systems, (Hebrew) TheMarker, 9 92 Barshad, A., Inside Israel’s lucrative — and January 2020. secretive —cybersurveillance industry, Rest of the 85 Who we are, (Hebrew) Cyberspark Israeli World, 9 March 2021. Innovation Arena. Accessed 10 May 2021. 93 Ibid. 86 Annual report 2019-2020, (Hebrew) Israel 94 UN Human Rights Council, Surveillance and National Cyber Directorate, 27 October 2020. human rights. Report of the Special Rapporteur on the 87 Annual report 2019-2020, (Hebrew) Israel promotion and protection of the right to freedom of National Cyber Directorate, 27 October 2020. opinion and expression, 28 May 2019, A/HRC/41/35. 88 Gross, J. A., Mega-builder Shikun & Binui gets 95 ,Amnesty International tender to build IDF intel complex in south, Times of Affidavit in Support of Israeli Petition, 13 May 2019. Israel, 13 July 2020. ACT 10/0332/2019.

13 | Repression Diplomacy : The israeli Cyber Industry However, weak controls are the mechanism THE NEW NORMAL: that enables Israeli global exports of cyber re- Cybersecurity and Israel-UAE pression, not its raison d’être. Israel’s dispro- Normalization portionate share in supplying authoritarian The Trump-brokered normalization agree- governments is best understood as rooted in ments signed between Israel, the UAE, and and stemming from its interests as a settler Bahrain in September 2020 marked the cul- colonial state. Israel’s decades-old oppression mination of a process of regional normaliza- of the Palestinian people, military occupation, tion several years in the making.96 Revolu- apartheid policies, and denial of the right of tionary and counterrevolutionary processes return of Palestinian refugees have given it a unfolding in the and North vested interest in global repression; both to (MENA) region since the 2011 Arab uprisings, normalize its own regime and to rally interna- including the intensifying Saudi/UAE conflict tional support for, or at least tacit acceptance with Iran, have led to a realignment of region- of, its ongoing policies of repression. al power that was previously unthinkable.97 The export of Israeli cyber intelligence and es-

A c c o r d i n g t o t e s t i m o n i e s , I s r a e l i p r o d u c t s e n a b l e d g o v e r n m e n t s t o t r a c k a n d d e t a i n a c t i v i s t s , p e r s e c u t e L G B T p e o p l e a n d s i l e n c e p o l i t i c a l d i s s e n t .

Other political motivations are more imme- pionage technologies has been an important diate and context-dependent. At the regional channel in this growing rapprochement. Rori level, Israel’s ongoing conflict with Iran has Donaghy, founder of the Emirates Centre for pushed it to form new strategic alliances in Human Rights, told The Intercept in 2016 that which cyber has been a key commodity. The the UAE considers Israelis to be “simply the recent normalization of political and econom- best in this market, the most intrusive, the ic relations between Israel and the UAE as dis- most secretive.”98 Donaghy claimed the UAE cussed in the following section, provides an bought Israeli security products to the tune instructive case study for situating cyber with- of hundreds of millions of US dollars. Hacked in broader economic and political dynamics. data from Cellebrite shared with Mother- board contained messages from the UAE’s

96 US Department of State, Bureau of Near Eastern Affairs,The Abraham Accords Declaration, 15 September 2020. 97 Hanieh, A. Money, markets, and monarchies: The and the political econ- omy of the contemporary Middle East. Vol. 4. Cam- bridge University Press, 2018. 98 Kane, A., How Israel Became a Hub for Sur- veillance Technology, The Intercept, 17 October 2016.

14 | Repression Diplomacy : The israeli Cyber Industry I s r a e l ’ s d i s p r o p o r t i o n a t e s h a r e i n s u p p l y i n g a u t h o r i t a r i a n g o v e r n m e n t s i s b e s t u n d e r s t o o d a s r o o t e d i n i t s d e c a d e s - o l d o p p r e s s i o n o f t h e P a l e s t i n i a n p e o p l e , w h i c h h a s g i v e n i t a v e s t e d i n t e r e s t i n g l o b a l r e p r e s s i o n t o n o r m a l i z e i t s r e p r e s s i v e p o l i c i e s a n d r a l l y i n t e r n a t i o n a l s u p p o r t f o r t h e m .

Ministry of Interior dated 2011.99 In 2016, istered company Global Technologies The Intercept reported that Cellebrite’s UFED (AGT), owned by Israeli businessman Mati technology was used by Bahraini author- Kochavi, participated in installing Abu Dhabi’s ities in 2013 to crack the phone of tortured mass-surveillance system Falcon Eye, which political dissident Mohammed al-Singace. was developed by ATG’s Israeli subsidiary Log- The phone’s contents, extracted using Cel- ic Industries.102 lebrite’s software, were entered as evidence Not only may Israeli technologies have been 100 in al-Singace’s trial. According to Citizen present in the Gulf for quite some time, but Lab, NSO Group’s iPhone zero-days was used also Israeli human resources, in the form of against the UAE-based human rights defend- intelligence veterans turned tech workers. 101 er Ahmed Mansoor. In 2016, the Swiss-reg- Media sources revealed that the Abu Dha- bi-based cyber company Dark Matter has 99 Cox, J., Cellebrite Sold Phone Hacking Tech to been recruiting Unit 8200 veterans and em- Repressive Regimes, Data Suggests, Motherboard Tech by Vice, 12 January 2017. According to Motherboard, ploying them in Cyprus well before diplomat- “Cellebrite declined a request for comment, and did ic relations were established.103 Former Israeli not answer an emailed set of questions about the military intelligence personnel were report- company’s vetting of customers, nor the absence of any human rights clauses from the EULA.” edly tied to a messaging app used by the UAE 100 Biddle, S. and Desmukh, F., Phone-Cracking to monitor and surveil users. 104 Cellebrite Software Used to Prosecute Tortured Dissi- dent, The Intercept, 8 December 2016. The Intercept contacted Cellebrite co-CEO Yossi Carmil, who referred strictly a technology company,’ the statement contin- the authors to Cellebrite’s CMO Jeremy Nazarian. ued. ‘The agreements signed with ’s cus- “Nazarian told The Intercept that the use of Cellebrite tomers require that the company’s products only be technology to torture a Bahraini human rights activist used in a lawful manner. Specifically, the products may ‘doesn’t ring a bell,’ and ‘as a general policy we don’t only be used for the prevention and investigation of discuss anything having to do with field operations.’” crimes. The company has no knowledge of and cannot The following day, a PR firm representing the company confirm the specific cases mentioned in your inquiry.’” told The Intercept Cellebrite declined to comment any For more on the activities of NSO Group, see: Who further. Profits,NSO Group: Technologies of Control, May 101 Marczak, B. and Scott-Railton, J.,The Million 2020. Dollar Dissident: NSO Group’s iPhone Zero-Days used 102 Ferzeiger, J. and Waldman, P. How Do Israel’s against a UAE Human Rights Defender, Citizen Lab, 24 Tech Firms Do Business in ? Very Quietly, August 2016. Brewster, T., Everything We Know About Bloomberg, 2 February 2017. According to Bloomberg, NSO Group: The Professional Spies Who Hacked Kochavi through his spokesperson declined to com- iPhones with a Single Text, Forbes, 25 August 2016. ment on the allegations. According to Forbes, “NSO Group sent a statement to 103 Mazzetti, M., Goldman, A., Bergman, R., and FORBES via email in which it said its mission was to Perlroth, N. A New Age of Warfare: How Mer- make the world a safer place ‘by providing authorized cenaries Do Battle for Authoritarian Governments, governments with technology that helps them combat New York Times, 21 March 2019. According to the NYT, terror and crime’. ‘The company sells only to autho- the company did not respond to a request to com- rized governmental agencies, and fully complies with ment. strict export control laws and regulations. Moreover, 104 TOI Staff,Former IDF intelligence personnel the company does NOT operate any of its systems; it is likely tied to UAE spy app, report says, Times of Israel,

15 | Repression Diplomacy : The israeli Cyber Industry Following the establishment of formal eco- raeli newspaper Globes that the deal was nomic and political relations in September brokered by a former Mossad executive.110 2020, such business dealings and recruitment Israeli cyber company, Waterfall Security, efforts have been taking place openly, and opened a subsidiary in Abu Dhabi in March their volume has increased dramatically. Ac- 2021,111 while an Israeli consortium led by cording to the Israel Export Institute, Israeli Rafael participated in (and reportedly lost) exports to the UAE surpassed US$500 million an international bid to establish a national in the first six months since the normalization cybersecurity command center in in agreement was signed and are expected to February 2021.112

T h e e x p o r t o f I s r a e l i c y b e r i n t e l l i g e n c e a n d e s p i o n a g e t e c h n o l o g i e s h a s b e e n a n i m p o r t a n t c h a n n e l i n t h e g r o w i n g r a p p r o c h e m e n t b e t w e e n I s r a e l a n d t h e U A E .

105 reach a billion US dollars within a year. The coming together of shared geopolitical in- Shortly after the agreements were signed, terests, Emirati capital and Israeli surveillance the head of the INCD and his Emirati counter- expertise was encapsulated in the Cybertech part spoke in a joint public forum organized Global international conference and exhibi- by Tel Aviv University’s cyber research center, tion held in Dubai in April 2021. This was the affirming the strategic partnership between first time since its inception in 2013 that- Cy the two states.106 The UAE Head of Cyber Se- bertech Global took place outside of Tel Aviv. curity went as far as to propose joint Israe- According to media reports, it was the biggest li-UAE cyber exercises.107 Israeli cyber com- conference for the cyber industry outside of panies participated in a high-tech delegation the US, and its main exhibit appeared to be to the UAE organized by Jerusalem Venture the newly public and rapidly expanding cyber Partners Fund.108 In October 2020, Cellebrite ties between the founding and host coun- announced a US$3 million deal with a govern- tries, Israel and the UAE.113 109 ment agency in Abu Dhabi. A source told Is- The conference program included sessions on cyber in aviation, maritime and logistics, crit- 23 December 2019. 105 Desoukie, O and Duer, P., Israel y Emira- Cellebrite signs deal in UAE, Globes, 22 October 2020. tos, medio año de relaciones más comerciales que 110 Ibid. diplomáticas, (Spanish) SWI swissinfo.ch, 15 March 111 Israeli industrial cyber firm Waterfall estab- 2021. lished a subsidiary in the UAE, (Hebrew) TechTime 106 Head of UAE cyber directorate: We share Electronics & Technology News, 29 March 2021. information and it helps us with deterrence, (Hebrew) 112 Melman, Y., Stinging Blow for Israel in Major Israel National Cyber Directorate, 24 September 2020. Dubai Cyber Bid, Haaretz, 28 February 2021. Emirati Accessed 10 May 2021. official denied that Rafael lost the bid and told Haaretz 107 Kogosowski, M., Head of UAE cyber director- the tender is currently undergoing structural changes. ate calls for joint cyber exercises with Israel, (Hebrew) Ben Yaakov, O. Israel and the UAE share information Israel Defense, 6 April 2021. on Hezbolla’s cyber activties, (Hebrew) Haaretz, 7 108 Solomon, S., Food, cybersecurity firms leave April 2021. for UAE in bid to forge tech ties, Times of Israel, 25 113 Israel-UAE cybersecurity ties the focus of October 2020. attention at Cybertech conference in Dubai, CTech, 7 109 Berkovitz, U., Israeli cyber intelligence co April 2020.

16 | Repression Diplomacy : The israeli Cyber Industry ical infrastructures and smart cities, fintech, national intelligence and policing, and in the post-Covid-19 world. On the Emirati side, there were speakers and sponsors from the Dubai International Financial Center, London Stock Exchange Group, the National Bank of Fujairah and the government owned Emirates NBD, as well as major public and private en- terprises. 114 On the Israeli side, high ranking intelligence officers turned tech entrepreneurs dominat- ed the list of participants. Those included Nadav Zafrir, the former commander of Unit 8200 and current Managing Partner of Team8, , the former Head of the Mossad and current Chairman of XM Cyber, and Nir Lempert, the CEO of Israeli surveillance firm Mer Group and Chairman of the Unit 8200 Alumni Association.115 An invitation-only spe- cial session invited conference attendees to unlock the “Secrets of Unit 8200 – incubator forging entrepreneurs and innovators.”116 The forms of political, economic and scientific cooperation facilitated by the recent UAE-Is- raeli normalization are part of a growing trend whereby Israel’s booming surveillance industry is utilized to shape and advance po- litical ends, generating enormous profits in the process.

114 Agenda, Cybertech Global Dubai. Accessed 10 May 2021. 115 Ibid. 116 Ibid.

17 | Repression Diplomacy : The israeli Cyber Industry