Israel’s defense exports rose by nearly 30% in 2025 to a record $19.2 billion, the fifth consecutive year of increases, Israeli Defense Ministry officials said.
More than half of the contracts were for deals valued at more than $100 million each. Missiles, rockets and air defense systems were the leading exports last year, accounting for more than a quarter of Israel’s international defense contracts.
The country remains a leading international defense exporter despite international scrutiny and public condemnations over its military campaign in the Gaza Strip.
Israel’s defense industries have operated under wartime conditions since the Oct. 7, 2023, attacks by the Palestinian militant group Hamas in Gaza, Defense Ministry officials said.
“There is a clear and unmistakable threat connecting the [Israel Defense Forces’] battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defense industries, and the success of Israel’s defense exports around the world,” Defense Minister Israel Katz said in a statement. “The fact that Israel continues to break defense export records even in the midst of a third year of war speaks to the tremendous respect and confidence the global community has placed in Israel’s defense establishment.”
Air defense systems accounted for 29% of the contracts in 2025, followed by observation technology, radar and electronic warfare equipment, and manned aircraft and aviation electronics, officials said.
Israeli officials said 36% of the country’s defense contracts were for countries in Europe, while Asia and the Pacific region accounted for 32%.
“Many countries around the world have increased their defense and procurement budgets and are interested in Israel’s defense industry,” said Brig. Gen. Yair Kulas, director of the ministry’s International Defense Cooperation Directorate.
According to the Stockholm International Peace Research Institute, Israel recently surpassed the United Kingdom as the world’s seventh-largest defense exporter. It accounts for about 4.5% of exports due to surging demand for its advanced drones, missiles, and other defense technologies.
“Behind the numbers stands an industry that has proven a unique capability — supplying the IDF with munitions and systems for a full-scale military campaign, while simultaneously expanding export markets and signing numerous deals with governments and customers around the world,” Gen. Kulas said.
