September 29, 2026: Israel is one of the world’s leading arms exporters, with nearly $200 billion in exports in 2025, which was a third more than in 2024. Israel has had five years of growing arms exports. Israel’s share of the global arms market between 2021 and 2025 made it the world's seventh-largest arms exporter. Air defense systems, missiles, and rockets accounted for 29% of exports in 2025, while surveillance and optoelectronics rose to 22%.

These combat-proven weapons went to more than three dozen nations worldwide. About twelve percent of Israeli exports are weapons. That’s a substantial contribution to the economy and provides jobs for over 100,000 people. And then there’s the population factor. In 2025, exports were $263 per Israeli, six times that of the Americans and 19 times that of Russia. Adjusted for GDP, Israel’s arms-export economy is over eight times larger than the United States.

Major Israeli arms manufacturers like Elbit Systems, IAI (Israel Aerospace Industries), and Rafael produce a wide range of military technologies, including missile defense systems, drones, precision-guided munitions, and cyber-defense equipment. Their rapid growth stems from nearly 80 years of frequent combat experience. Government support and the efforts of hundreds of thousands of Israeli soldiers, weapons producers, and government support played a role. Collaboration with foreign partners, particularly the United States, in designing and manufacturing new weapons.

Europe has been the largest customer for 36–41% of exports. Asia-Pacific accounted for 32–40% of exports, with India as a major client, purchasing drones, air defense systems, and other advanced technologies. Middle East and North Africa, including the UAE, Bahrain, and Morocco, represented 12–15%. This was made possible by the Abraham Accords peace treaty between Israel and a growing number of Arab nations. Americas and Africa accounted for around 2–13%.

Individual nations purchased weapons to protect themselves. Germany, for example, wanted the Arrow-3 missile defense system to deal with potential Russian missile attacks. India spent about $10 billion on air defense systems and drones

Cyber and electronic warfare systems: Advanced radar, signal intelligence, and jamming technologies, as well as Command, control, communications, and computing systems. These increasingly use AI, optics, and targeting systems using these technologies

Exports also provide Israel with strategic leverage, locking countries into long-term defense relationships. At the same time, the Americans play a critical role in Israel’s arms industry through Foreign Military Financing (FMF) and co-development of weapons systems, such as the Arrow-3 missile. Germany and Italy also supply components and technology, while Israel maintains a robust domestic production base to reduce reliance on imports. These partnerships enhance Israel’s global competitiveness and allow it to expand into new markets despite political controversies

Israel has established itself as a global leader in arms exports, combining advanced technology, operational experience, and strategic partnerships. Its exports are concentrated in Europe, Asia, and the Middle East, with a growing emphasis on high-tech missile defense, large surveillance drones and smaller attack drones, and other precision munitions. Despite international criticism and regional conflicts, Israel’s defense industry continues to expand, making it a key player in the global arms market.