Israel’s Defense Ministry said last week that Israel had set a new record in defense exports in 2024. Israel exported $14.7 billion last year. This is a thirteen percent increase over 2023. Another key aspect of 2024’s success was that around half the value of exports was to Europe. Defense exports have more than doubled over the past five years, the ministry said.
Israel’s defense industry is large and innovative. It consists of three large companies: Rafael Advanced Defense Systems, Israel Aerospace Industries, and Elbit Systems. Rafael is the historic research and development pillar of Israel’s defense sector. Its roots were in 1948, and Israeli Prime Minister David Ben-Gurion was very keen on establishing this kind of innovative aspect to make sure Israel’s defense relied on local designs and pioneering. IAI has its roots in the 1950s and is Israel’s main aerospace company. Along with Rafael, it is also a government-owned company. Elbit Systems was also originally founded with government support, but is now a publicly traded company.
The rest of Israel’s defense market is made up of smaller companies that generally specialize in certain things, such as drones, ammunition, firearms, and other products. The goal in general in Israel is to have an ecosystem of defense companies that combine to be able to produce most of what Israel needs in terms of systems for war. The only place Israel can’t produce its own systems is in large platforms, such as ships, submarines, or airplanes. (Read More)
