On Sunday, Israel Aerospace Industries (IAI), headed by Boaz Levy, celebrated the successful launch of Israel’s national communications satellite Dror 1 from SpaceX’s launch site at Cape Canaveral. “Globes” has now learned that IAI is one of a shortlist of four candidates in a tender for the purchase of a satellite issued by Azerbaijan.
Azerbaijan’s requirements are for a satellite of the highest international standard, similar to Dror 1.
Competition from Turkey and France
Defense sources told “Globes” that Azerbaijan’s investment would be between $300 million and $800 million, a wide range that stems from the range of elements that will be incorporated in the satellite.
IAI’s main competition in the tender is from Thales Alenia Space, a joint venture in which French company Thales holds 67% and Leonardo of Italy holds 33%. Thales is a large enough company to compete in the tender by itself, but it is clear to its management that, because of the close relations between France and Azerbaijan’s enemy Armenia, the chances of it being chosen are low. Hence the link with Leonardo, with the aim of exploiting Italy’s good relations with Azerbaijan.
Another interesting bidder in the tender is state-owned Turkish Aerospace Industries, which could emerge as an integrator using foreign equipment, particularly from South Korea.
Aspirations to global impact
A substantial difference between Israel and Azerbaijan lies in the purposes of the satellites. While Israel advanced the Dror 1 project primarily to answer Israeli needs, Azerbaijan sees in satellite communications a means of diversifying its economy and expanding its global influence. It seeks to cover Africa, the Middle East and other regions, in an attempt to become an international telecommunications hub.
Previous win in Azerbaijan
IAI doubtless derives optimism in the current tender from the fact that Azerbaijan’s space agency Azercosmos chose IAI in a previous satellite tender. On October 3, 2023, Azerbaijan signed a contract with IAI for the purchase of two OptSat500 observation satellites, in a deal worth $120 million according to Azerbaijani reports. The OptSat series consists of small observation satellites with long lifetimes and high imaging capabilities.
The first of these satellites is currently being built in Israel, and will be transferred to Azerbaijan next year for integration. In 2026, construction of the second satellite will begin in Azerbaijan. Both satellites are due to be launched in 2028. The contract arises from a long-term agreement between Azerbaijan and IAI on collaboration and academic training in space-related disciplines. Dozens of Azerbaijanis are currently in Israel working with IAI on construction of the satellite and acquiring know-how.
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It is worth mentioning that satellites are far from being the only products that Azerbaijan buys from Israeli defense companies.
IAI stated in response to the report: “The company has many years’ experience in observation and communications satellites. On the basis of this experience, the Dror 1 satellite was successfully launched, and is on its way to its designated position in the sky. IAI operates not only on the national plane, but also on the global business plane, and does not disclose details of its marketing activities.”
Published by Globes, Israel business news – en.globes.co.il – on July 15, 2025.
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