Israel's defense exports break record again, reaching $14.8 billion in 2024

Defense Ministry notes that 54% of arms exports were directed to European countries, many of which have been increasing military spending in response to the prolonged war between Russia and Ukraine

Calcalist|
Israel’s defense exports reached a record $14.8 billion in 2024, even as the country remained locked in its longest war and faced mounting international pressure—particularly from Europe—to bring the conflict in Gaza to an end.
The Defense Ministry announced the figures Wednesday, noting that 54% of arms exports were directed to European countries, many of which have been increasing military spending in response to the prolonged war between Russia and Ukraine.
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בפרס ביטחון ישראל לשנת 2024
בפרס ביטחון ישראל לשנת 2024
(Photo: Defense Ministry)
Israeli air defense systems accounted for nearly half of total exports last year, driven by major deals with European and Asian nations. Notably, Israel Aerospace Industries signed a $3.8 billion agreement with Germany for the Arrow 3 missile defense system, marking the largest defense deal in Israeli history. IAI’s Barak MX and Rafael’s David’s Sling systems also saw strong demand.
“Foreign defense companies can take up to seven years to deliver. Ours manage it in two or three—even while supporting the IDF's operational needs,” said Yair Kulas, head of the ministry’s International Defense Cooperation Directorate, known by its Hebrew acronym SIBAT.
European demand was fueled by military aid to Ukraine, including weapons transfers from national stockpiles, and by an effort to modernize offensive and defensive capabilities. Still, some European countries have sharply criticized Israel’s military campaign in Gaza, now in its 20th month, citing heavy civilian casualties and destruction.
That criticism has led to diplomatic and commercial repercussions. Israeli firms were excluded from several major defense exhibitions in Europe last year, and some countries have halted purchases. Spain’s Defense Ministry recently suspended a $300 million deal with Rafael for anti-tank missiles and previously canceled a $6.6 million ammunition deal with Elbit Systems.
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משרד הביטחון רוכש מחברת ׳אלביט מערכות׳ מערכות הגנה מתקדמות עבור מסוקי האפאצ׳י והבלקהוק של צה״ל בכ-200 מיליון ש״ח
משרד הביטחון רוכש מחברת ׳אלביט מערכות׳ מערכות הגנה מתקדמות עבור מסוקי האפאצ׳י והבלקהוק של צה״ל בכ-200 מיליון ש״ח
(Photo: IDF Spokesperson's Unit)
Despite these setbacks, Europe overtook Asia-Pacific as Israel’s largest arms market. Exports to Asia-Pacific fell by 25% to 23% of total sales. Defense exports to Arab nations that normalized relations with Israel under the 2020 Abraham Accords rose to 12%, up from 3% in 2023. Among them, Morocco signed a deal earlier this year for Elbit’s ATMOS howitzers, valued at €150 million to €200 million. It had previously purchased the PULS rocket system and, according to reports, acquired IAI’s Barak MX system and a reconnaissance satellite.
The rise in exports was also supported by an increase in government-to-government contracts, which accounted for 54% of all deals in 2024, up from 35% the previous year. Such agreements often bypass lengthy procurement procedures and allow for faster implementation.
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Israel’s defense exports have now hit record levels for four consecutive years and have doubled in value over the past five years.
Still, Kulas acknowledged that public outrage over images from Gaza has created “a major challenge” for Israel’s defense diplomacy. Supply chains are also under strain from regional instability, including Houthi threats to shipping lanes in the Red Sea and missile fire that has disrupted air traffic at Ben Gurion Airport. Against that backdrop, Kulas said it remains uncertain whether 2025 will bring another record year.
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