Israel's weapons exports reached a record high of more than $19 billion last year, a 30% increase from 2024, according to the country's Defense Ministry. Sales have more than doubled in the past five years, despite widespread criticism of Israel's military operations in Gaza, against Hezbollah, and with Iran.
Mega-Deals and Battle-Tested Systems
Over half of 2025's sales were classified as mega-deals, each valued at $100 million or more. The ministry did not disclose the buyers, but industry officials indicate that countries which publicly vowed to shun Israeli weapons are quietly placing orders. Experts attribute this demand to the battle-tested nature of Israeli arms, with real-time proof of effectiveness on the battlefield.
Defense Minister Israel Katz stated, "There is a clear and unmistakable thread connecting the army's battlefield achievements across all fronts, the extraordinary capabilities of Israel's defense industries, and the success of Israeli defense exports around the world." He emphasized that the growing figures reinforce Israel's position as a leading defense technology power and carry a responsibility to keep innovating.
Future Focus: Drone Defense
The ministry highlighted drone interception as a future priority for innovation. Drones have proven challenging to detect during the war with Iran, as radar systems calibrated for high-speed missiles often mistake them for birds or aircraft.
The annual Defense Tech Expo in Tel Aviv showcased growing international interest in Israeli weapons, with manufacturers promoting equipment shaped by recent conflicts. However, the event also highlighted tensions between showcasing military technology and political debates over its use, with protesters condemning the destruction in Gaza as a testing ground for Israeli arms. The ministry denies using battlefields as testing labs, stating that equipment is used solely for defense.
Sales Breakdown
More than a quarter of 2025's sales involved missile, rocket, and air defense systems, similar to the previous year. There was also a notable surge in observation and optronics systems, which include rifle sights and other optical, infrared, or ultraviolet radiation technologies.
A March report by the Stockholm International Peace Research Institute revealed that, for the first time, Israel surpassed the United Kingdom in global arms export share, becoming the world's seventh-largest supplier.
