Although the AR-7 is still in production as a survival rifle, the one pictured is a very early model modified and used for a short time by the Israeli military. You’ll notice the FAL pistol grip but also that the front sight and hood are off of the Mauser K98, which they had tons of in surplus. Note that the collapsible wire stock also holds the magazines and any spares.
They weren’t used for too long due to reliability issues, probably because it’s also a semi-automatic. A bolt-action or single shot would have been more reliable.