Washington: Israel’s weapons industry reached unprecedented heights in 2024, selling $14.7 billion in arms even while fighting a protracted war in Gaza and facing rising tensions with Iran. Over half of the exports (54 percent) went to European countries, mostly in advanced air defense systems.
The Russia-Ukraine war fuelled further demand, giving Israeli defense firms a rare windfall. The Israeli Defence Ministry released the figures in June 2025, highlighting the fourth consecutive year of record-breaking exports.
The defence sector posted a 13 percent increase in turnover compared with 2023, surpassing $14.7 billion. European nations purchased nearly $8 billion worth of equipment, a dramatic rise from 35 percent in the previous year.
The Asia-Pacific region ranked second but fell far behind Europe. The most sold equipment included air defence systems, such as components of the Iron Dome, which accounted for 48 percent of the sales. Missiles, drones, radars and cyber warfare technology also saw high demand.
Companies such as the Israel Aerospace Industries (IAI), the Rafael Advanced Defence Systems and the Elbit Systems led the exports.
Despite significant casualties and destruction in Gaza, Israeli weapons gained credibility on the battlefield. European buyers considered these systems tested and reliable. The ongoing Russia-Ukraine conflict created urgent needs for air defence and advanced military technology, which Israel supplied with speed. Tensions with Iran also contributed. An attempted missile attack by Tehran in April 2024 elevated demand for Israeli defence systems.
Concerned by regional threats, European nations sought Israeli technology. Despite calls for boycotts over the Gaza war, sales continued to rise.
Germany, France, Italy and the United Kingdom placed substantial orders. Berlin invested billions in Iron Dome components. Poland acquired drones and missile systems. Romania focussed on radars and air defence solutions.
While the European Union criticised Israel over Gaza, it remained the largest trade partner, engaging in $45.5 billion worth of commerce in 2024. Some EU nations warned that continued conflict in Gaza could jeopardise trade benefits, but no significant restrictions materialised.
Weapons sales bolstered Israel’s economy. The defence industry contributes seven percent of the GDP and creates around 50,000 jobs. Revenue from exports helped offset war expenses estimated at $60 billion.
At the same time, international criticism grew. The United Nations accused Israel of “mass atrocities” in Gaza. The United States provided $18 billion in aid, while boycott movements intensified across Europe. The Netanyahu government framed high exports as proof of self-reliance and announced plans to expand further into Asian and African markets.
Israel’s surge in arms sales illustrates the profitability of conflict. More than 40,000 deaths occurred in Gaza in 2024 alone, and tensions with Iran remain high. Europe’s heavy purchases may upset regional balance in the Middle East.
Experts argue for stricter global regulations on arms trade. Israel’s success demonstrates technological superiority, but it also raises ethical questions about profiting from war.
The story of Israel’s 2024 defence exports shows a nation turning conflict into commerce, with consequences that ripple far beyond its borders.
