In the high-stakes world of missile defense, two rival stories are unfolding on opposite sides of the Mediterranean. On one hand, Israel’s Rafael Advanced Defense Systems, famed for its Iron Dome technology, is lobbying the government for permission to go public—an unprecedented move that could reshape the country’s defense industry. On the other, Turkey has just completed a critical milestone in its ambitious Steel Dome project, signaling a new era of indigenous missile defense capabilities and raising eyebrows across the region.
According to a recent report by Calcalist, Rafael is pressing hard for an initial public offering (IPO) as its competitor, Israel Aerospace Industries (IAI), moves ahead with plans to float a 30% minority stake at a staggering valuation of about NIS 100 billion ($30 billion). The state-owned defense giants, both under strict regulatory controls, find themselves at a crossroads as global demand for advanced defense systems skyrockets amid a 22-month conflict involving Israel and broader instability worldwide.
Rafael’s chairman, Yuval Steinitz, has been vocal in his warnings to Israel’s Finance and Defense ministries. He argues that once IAI is floated, it will gain “far greater business flexibility. It will operate according to market standards, attract top talent by avoiding salary caps, and leave Rafael at risk of falling behind,” as a senior analyst told Calcalist. Steinitz’s concern is that Rafael will become the only major state-owned defense company left facing two public competitors—IAI and Elbit Systems—unless it, too, is allowed to list on the stock market.
But going public is no simple affair for Rafael. Unlike IAI, which already has bonds trading on the Tel Aviv Stock Exchange and publishes its financial statements, Rafael would be entering the capital markets from scratch. That means determining which of its operations can remain classified, how much information can be safely disclosed in a public prospectus, and conducting a formal valuation—steps complicated by the sensitive nature of its work. Sources close to the company say that, despite these hurdles, a minority stake could be sold while protecting national security, much as is planned for IAI. After all, major U.S. defense contractors like Lockheed Martin and Northrop Grumman have managed to go public while safeguarding secrets.
Meanwhile, the Israeli government is trying to strike a balance. The Government Companies Authority has proposed a compromise: if IAI goes public, Rafael would receive a state commitment not to withdraw dividends for several years. Tomer, another state-owned company handling classified rocket propulsion, would be granted a similar exemption. Still, it’s not clear whether Steinitz will accept this olive branch. There’s also the matter of tax incentives—Rafael is currently excluded from benefits designed to encourage capital investment in exporters, a policy ironically enacted during Steinitz’s own tenure as finance minister. If IAI becomes a public company, it would regain access to these lucrative incentives, potentially worth hundreds of millions of shekels each year.
Discussions between the Finance Ministry, Defense Ministry, and the Government Companies Authority have picked up steam, with status meetings every two weeks. The ministries have reportedly reached an agreement in principle to advance IAI’s IPO, aiming to sell a 30% stake and raise billions to help cover the mounting costs of Israel’s extended conflict. In 2024, IAI posted $6.1 billion in revenue and nearly $500 million in net profit, while Rafael generated roughly NIS 18 billion ($5.25 billion) in sales and NIS 950 million ($278 million) in net profit. The big question now: how will the proceeds from IAI’s IPO be used? The Treasury wants the lion’s share for state coffers, while the Defense Ministry is pushing to reinvest in weapons procurement, research and development, and expanded production capabilities.
While Israel’s defense industry grapples with these internal debates, Turkey is making headlines of its own. On August 9, 2025, Turkish officials announced the successful completion of the serial production acceptance test for the SIPER Product-2, the long-range missile at the heart of the country’s indigenously developed Steel Dome air defense shield. As reported by India.com, the SIPER variant boasts a range of 150 kilometers and is engineered to intercept a wide array of aerial threats, including fighter jets, cruise missiles, drones, and air-to-ground munitions.
The Steel Dome system is a multi-layered, network-based air defense shield, integrating advanced artificial intelligence and designed to counter everything from short-range drones to long-range ballistic missiles. Its components include the 35 km Korkat gun system for very short-range threats, Hisar-A and Hisar-O missiles for short and medium ranges, and the SIPER system for long-range defense. According to Turkish officials, the SIPER missile features a K-band radio frequency seeker for precise target identification and tracking, and is the product of collaboration between Aselsan, Roketsan, and the Turkish Scientific and Technological Research Institute (TUBITAK).
But Turkey isn’t stopping there. The country is also developing advanced technologies to enhance the Steel Dome’s capabilities, such as integrating satellite navigation, developing the KKS antenna, and producing its own Kaşif Global Positioning System receiver and Atlas Inertial Measurement Unit. These efforts are part of a broader push for technological independence and military self-sufficiency.
Turkey’s rapid progress in defense technology has not gone unnoticed by its neighbors—or its allies. The country has strengthened military ties with Pakistan, supplying advanced drones like the Bayraktar TB2, which were reportedly used during the recent India-Pakistan conflict known as Operation Sindoor. During that operation, Turkey even docked a warship at Karachi Port to deter potential Indian naval action. Experts cited by India.com warn that Turkey’s growing arsenal, including the Steel Dome system, could one day be transferred to Pakistan, posing a significant threat to India’s security landscape.
As the world’s defense landscape shifts, the stories of Rafael and Turkey’s Steel Dome offer a glimpse into the fierce competition, technological innovation, and geopolitical maneuvering shaping the next generation of missile defense. Whether it’s the race for IPO approval in Israel or the rollout of a new indigenous shield in Turkey, one thing is certain: the stakes have never been higher, and the world is watching closely.
The coming years will reveal whether Rafael can secure its place on the global stage alongside its rivals, and how Turkey’s Steel Dome will alter the balance of power in a region where every technological breakthrough carries profound consequences.