This is what I have gleaned from the internet and I have no verification of sources.
The FIDF apparently purchased the weapons in 1987-88. The consensus is that the SA-80 was not available for purchase at that time as all production was going to front line units in Northern Ireland and Europe. It is possible, therefore, that the Steyr was purchased for ammo compatibility and maybe because it was a bull-pup.
This is, of course, highly speculative but sounds feasible to me.
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