Israel’s Defense Exports Reach Record $14.8 Billion Amid War and Global Pressure

Despite international criticism and the ongoing war in Gaza, Israel achieved a historic milestone in 2024, recording $14.8 billion in defense exports — the highest in the country’s history.
This marks the fourth consecutive year of record-breaking arms exports, according to data released by the Defense Export Division (SIBAT) of the Israeli Ministry of Defense.

A significant 54% of Israeli defense exports in 2024 were directed to European countries, many of which are engaged in a large-scale rearmament campaign triggered by the prolonged Russia-Ukraine war. European demand surged by 19% compared to 2023, driven largely by the need to replenish military stockpiles and upgrade defense capabilities.

Among the landmark deals was Germany’s €3.5 billion purchase of the Arrow 3 missile defense system, the largest defense deal in Israel’s history. Other key exports included the Barak MX air defense system from Israel Aerospace Industries (IAI) and the David’s Sling system from Rafael.

Air Defense Systems Dominate Sales

In 2024, air defense systems accounted for 48% of all Israeli arms exports, underscoring global demand for advanced defensive technology. Many countries — particularly in Europe and Asia — prioritized missile defense acquisitions amid growing regional threats and conflicts.

Europe: Boycotts and Canceled Deals

While Europe was Israel’s largest customer, political friction over the Gaza war had tangible impacts on trade relations. Several European countries excluded Israeli companies from defense exhibitions, and others halted planned procurement.

• Spain canceled a $6.6 million small arms ammunition deal with Elbit Systems and froze a $300 million anti-tank missile deal with Rafael.

• Some nations also imposed partial boycotts on component exports, impacting production lines.

Despite these actions, demand remained strong. SIBAT reports that Israel’s streamlined government-to-government contract system — now accounting for 54% of all defense deals, up from 35% in 2023 — helped bypass bureaucratic delays and maintain momentum.

Decline in Asia-Pacific Sales

Defense exports to the Asia-Pacific region fell by 25%, accounting for just 23% of total sales. In contrast, trade with Arab countries that normalized relations under the Abraham Accords surged to 12%, up from 3% in 2023.

Among the major deals:

• Morocco purchased Elbit’s ATMOS howitzers (valued at €150–200 million), the PULS rocket system, and reportedly acquired IAI’s Barak MX system and a military satellite.

Israel’s Edge: Speed and Combat-Proven Tech

According to Yair Koles, head of the Defense Export Division, Israeli companies have a unique advantage in the global arms market due to their ability to deliver systems within 2–3 years, compared to 7 years for many foreign competitors.

"Despite being fully engaged in supplying the IDF on multiple fronts, Israeli defense firms have doubled or tripled their production capacity," said Koles. “This rapid response capability is critical in today’s fast-changing threat landscape.”

Gaza Images, Supply Threats, and Global Scrutiny

Koles acknowledged that Israel’s defense industry faces growing international scrutiny due to the humanitarian situation in Gaza.

“The difficult images from Gaza pose a major challenge and complicate our dialogue with defense ministries around the world,” he said.

Further complications include:

• Houthi threats to Red Sea shipping lanes

• Missile attacks near Ben Gurion Airport, disrupting logistics and travel

• Global supply chain instability

Uncertain Future Despite Strong Momentum

Although Israel’s defense sector achieved unprecedented success in 2024, officials say it is too early to predict whether the trend will continue into 2025. The combination of geopolitical headwinds, domestic military demands, and growing diplomatic friction could shape a very different export landscape in the coming year.