Israel's Military Intelligence chief said Thursday that the Israel Defense Forces has foiled more than 10 terror plots in Sinai over the last two months.

Major General Aviv Kochavi, speaking during a graduation ceremony for new Military Intelligence officers, said that the rocket fired at Eilat shows the significant changes taking place in the region.

"Terror organizations are strengthening their hold on the Sinai Peninsula," said Major General Aviv Kochavi, during a graduation ceremony for new Military Intelligence officers.

"The Middle East, the place where the pace of armament is already the fastest in the world, is dramatically changing," he said. "It may be that the winds of change are carrying opportunities, but in the short term, the dangers are increasing."

Kochavi said that in the coming years, Israel's Military Intelligence must prepare for an increase in regional threats.

Early Thursday morning, a grad rocket exploded near a residential area in the southern Israeli city of Eilat. No was wounded and no damage was done, but some Eilat residents were said to be suffering from shock.

Security forces found traces of the rocket near a building site in the Shahamon neighborhood early on Thursday morning, about 150 meters from a residential area, after strong explosions shook the city approximatley twenty minutes after midnight on Wednesday.

Security forces continued to search for traces of more rockets, thought to have been fired toward the city from the Sinai Peninsula.