H. Yoo
Research expert covering South Korea
Defense industry in Israel - statistics & facts
Regional conflicts in Ukraine and Gaza have led to a surge in demand from Israeli arms manufacturers. Originally conceived as part of the country's national security strategy, the Israeli defense industry, has evolved into a cornerstone of its economy. In 2025, the Ministry of Defense earmarked nearly 55 billion Israeli shekels , approximately 13.8 billion U.S. dollars, much of which will go to local suppliers. However, the industry's primary revenue stream comes from international buyers. In 2024, foreign sales neared 15 billion U.S. dollars, underscoring the industry's global reach. With defense budgets on the rise worldwide, countries are increasingly turning to Israeli arms to bolster their military capabilities. Local industry leaders are encouraged by ambitious defense projects like President Donald Trump's proposed 'Golden Dome' missile defense program, which could potentially feature Israeli technology. Nevertheless, the future prospects of the industry will be intricately linked to Israel's international standing, particularly concerning human rights and the Palestinian conflict.
