Tilburg-based defence company AIA agreed with Israeli Weapons Industries (IWI) to manufacture two IWI-designed firearms in the Netherlands: the Arad 5 infantry rifle and the Negev UX light machine gun. AIA bought the technical data and know-how needed for production; the companies did not disclose the value of the deal.

The weapons are intended for the European market and NATO partners. Production is to begin in Tilburg before later moving to a larger AIA site in Overijssel. AIA is building a new factory, and its director said the company had not discussed the agreement with the Dutch government.