Despite an otherwise unremarkable development process, the Arava would ultimately only be built in relatively small numbers; many would-be operators, including the Israeli Air Force (IAF), determined that the aircraft lacked appeal over several existing market entrants.

Following an aggressive marketing campaign and new pricing strategies, multiple customers for the type were found, mainly amongst the developing countries, especially in Central and South America, as well as outliers in Swaziland (2018 renamed Eswatini) and Thailand.

According to aviation journalist and ex-IAI engineer Danny Shalom, substantial work on the development of what would become the Arava commenced right after the Six-Day War between Israel and several neighbouring nations.

[1] As the design took shape, key performance objectives included Short-Takeoff and Landing (STOL) capability, the ability to operate the type from unprepared/rough airstrips, as well as the carriage of up to 20 passengers or bulky payloads.

It was fitted with a fixed nosewheel undercarriage to save weight, while the chosen powerplant was a pair of 715 eshp (533 kW) Pratt & Whitney Canada PT6A-27 turboprop engines.

[3] The design configuration bore considerable similarity to the French Nord Noratlas transport plane, which was already being used at that time by the Israeli Air Force (IAF).

[1] During June 1968, the Israeli government, headed by Labor leader Levi Eshkol, issued its approval of the initiative, authorising IAI to proceed with full-scale development.

[1] The Arava was viewed not only as a sellable product in its own right, but also as a means of enhancing IAI's ability to develop aircraft and thus would heavily influence its work on future projects.

Due to its inferior performance to existing transport aircraft, IAI soon concluded that the Arava possessed little appeal to any civil operators, and turned its efforts towards the military market instead.

IAI, realising that a sale to the IAF was of substantial value in the eyes of prospective export customers, attempted to market the type for various needs, including air ambulance, search and rescue operations, troop-transport and utility missions.

[1] The intensive marketing campaign, along with a decrease in unit prices and the adoption of new payment schemes, was able to yield a degree of success; ultimately, IAI would sell around 70 Aravas across various South American customers.

[7] All of these aircraft were flown to the United States, where they were fitted with various American-sourced electronics and onboard systems to perform the intelligence mission; a likely factor in this decision was that the IAF's acquisition had been financed via US aid.