Israeli defence firms are experiencing a boom in sales, with exports reaching a record high of nearly $15 billion in 2024, according to the country's Defence Ministry. This growth comes despite widespread international criticism of Israel's military operations in Gaza and its conflicts with Hezbollah and Iran.
More than half of Israel's arms sales are for missiles, rockets and air-defence systems. For the first time, Israel has overtaken the United Kingdom to become the world's seventh-largest arms exporter, according to a March report by the Stockholm International Peace Research Institute. Leading manufacturers such as Elbit and Israel Aerospace Industries both reported double-digit sales growth last year.
Companies with no prior military expertise are also benefiting. Massivit, a 3D printing firm previously focused on entertainment sets for Disney and Netflix, now produces drone parts for the military. CEO Yossi Azarzar said: 'The entertainment industry is a nice customer — defence is a necessity.' The company reported a 200% rise in inquiries since pivoting to military production.
Some countries have publicly criticised Israeli weapons, with Spain cancelling a missile deal and Slovenia banning arms trade with Israel. However, industry officials say many nations are quietly placing orders, drawn by the proven effectiveness of Israeli systems in recent conflicts. Defence Minister Israel Katz called the sales 'a direct result of the successes of the army and defence industries'.
Human rights groups have accused Israel of using Gaza as a testing ground for new technologies, including AI and big data targeting systems. Omar Shakir of DAWN said the war has 'provided a boon to Israeli and other defence companies able to parlay the use of their products in Gaza to attract more business'. Israel denies using battlefields as testing grounds.
Experts note that Israel is not alone in profiting from conflict-driven demand. Seth J. Frantzman of the Foundation for Defense of Democracies said: 'Countries have had to dramatically increase defences because of the proliferation of global conflicts and they need systems that will work.'
