Israel’s Arms Exports Surge to $14.7 Billion Amid Conflict

Israel’s defense industry achieved a remarkable milestone in 2024, generating arms sales totaling $14.7 billion while engaged in an ongoing conflict in Gaza and navigating escalating tensions with Iran. According to data released by the Israeli Defence Ministry in June 2025, over half of these exports—approximately 54 percent—were directed towards European nations, primarily for advanced air defense systems. The heightened demand for military technology, spurred by the Russia-Ukraine war, has provided a significant boost to Israeli defense firms.

The Israeli arms sector experienced a 13 percent increase in turnover compared to the previous year, marking the fourth consecutive year of record-high exports. European countries invested nearly $8 billion in Israeli military equipment, a substantial increase from 35 percent the previous year. The Asia-Pacific region followed as the second-largest market but remained significantly behind Europe in both volume and value.

Key Products and Market Dynamics

The most sought-after products included air defense systems, particularly components of the Iron Dome, which accounted for 48 percent of total sales. Other high-demand items included missiles, drones, radars, and cyber warfare technologies. Prominent companies such as Israel Aerospace Industries (IAI), Rafael Advanced Defence Systems, and Elbit Systems led the charge in exports, capitalizing on the growing needs of their customers.

Despite the humanitarian crisis unfolding in Gaza, the effectiveness of Israeli weapons on the battlefield has bolstered their reputation among European buyers. The ongoing conflict in Ukraine has intensified the need for robust air defense solutions, which Israel has been able to provide rapidly. Additionally, an attempted missile attack by Iran in April 2024 heightened interest in Israeli defense systems from European nations, which have increasingly sought to bolster their military capabilities in response to regional threats.

European Investments and Strategic Considerations

Countries such as Germany, France, Italy, and the United Kingdom made significant investments in Israeli military technology. Berlin, for instance, allocated billions towards acquiring components of the Iron Dome, while Poland has invested in drones and missile systems. Romania focused its purchases on radars and air defense solutions. Although the European Union has publicly criticized Israel for its actions in Gaza, it remains the largest trade partner, with total commerce reaching $45.5 billion in 2024.

While some EU nations have cautioned that ongoing violence in Gaza could threaten trade relations, no substantial restrictions on arms sales have emerged. This complex dynamic illustrates the tension between humanitarian concerns and national security interests in Europe.

The surge in arms sales has provided a significant economic boost for Israel, with the defense sector contributing approximately 7 percent to the nation’s GDP and creating around 50,000 jobs. Revenue from these exports has helped mitigate the financial burden of the conflict, which is estimated to cost around $60 billion.

Simultaneously, international criticism has intensified, with the United Nations accusing Israel of “mass atrocities” in Gaza. The United States has continued to provide substantial military aid, amounting to $18 billion, while grassroots movements advocating for boycotts have gained momentum across Europe. The Israeli government has framed its rising arms exports as a testament to national self-reliance and is exploring opportunities to expand into Asian and African markets.

The implications of Israel’s record arms sales extend beyond its borders, highlighting the profitability of conflict. With over 40,000 deaths recorded in Gaza in 2024, the situation raises ethical questions about the arms trade and its consequences on regional stability. As Europe continues to rely heavily on Israeli military technology, experts are calling for stricter global regulations on arms sales to address the broader implications of such transactions.

The story of Israel’s arms exports in 2024 encapsulates a nation leveraging conflict for economic gain, with ramifications that reverberate throughout the international community.