Israel achieves record $14.8 billion in defense exports amid global demand

In 2024, Israel has dramatically increased its defense exports to a new record of $14.8 billion, showcasing its growing prominence in the global defense sector amid ongoing geopolitical tensions. European countries comprised the majority of this export volume, securing 54% of the contracts, followed by Asia and the Pacific at 23%, Abraham Accords countries at 12%, North America at 9%, and the remaining 2% distributed across Latin America and Africa. A significant number of contracts exceeded $100 million, demonstrating a robust demand for Israeli defense technology, largely driven by increased defense budgets in Europe due to the ongoing conflict stemming from Russia's actions in Ukraine. The rise of Israel’s defense exports is compounded by the unique capabilities of its defense industry, which has adapted to both satisfy the needs of the Israel Defense Forces (IDF) during conflicts and meet international demand. Israel's air defense systems constituted 48% of total sales in 2024, marking an impressive surge from 36% in the previous year. The notable advancements in missile interception technology, including significant developments in satellite and space systems, reflect the country's innovative edge in defense technology, with those systems jumping from 2% to 8% of total exports. Challenges posed by a complex global security landscape, including the Russian invasion of Ukraine, have pushed neighboring and allied nations to seek partnerships with Israel, seeing its defense capabilities as a means to enhance their own security. The Israeli government, represented by Minister of Defense Israel Katz and high-ranking officials, has emphasized the importance of these exports in bolstering national security and economic strength. They highlighted the potential for continued growth in the defense sector, underlining a strategy to enter new markets and focus on developing future technologies that will secure Israel's position as a leader in global defense innovation. This sustained growth in defense exports illustrates a significant increase over the last five years, suggesting a long-term shift in global defense spending towards countries that can provide reliable and advanced military technologies. The insights provided by government officials underline the critical role these exports play, not only for Israel’s economic stability but also for maintaining its defense capabilities in a rapidly changing international environment.