Israel’s defense exports hit a record $14.8 billion in 2024, a 13% increase from the previous year and double the total from five years ago, the Defense Ministry said Wednesday. But a senior official warned that the war in Gaza may threaten future sales, particularly in Europe.
Brig. Gen. (Res.) Yair Kulas, head of SIBAT, the ministry’s International Defense Cooperation Directorate, said rising international criticism over Israel’s military campaign in Gaza is already having an impact.
“Some members of foreign parliaments openly call not to buy from Israel due to the images from Gaza, and this has an effect,” Kulas said at a press briefing. “Some clients are telling us this directly. Competitors abroad are using it to their advantage.”
He said the Israeli defense industry faces a “dual force” in negotiations. “The militaries want our top-tier products, but political forces are blocking them. I hope necessity outweighs politics.”
According to ministry data, more than half of Israel’s defense exports in 2024 were to European countries—54% compared to 35% the year before. However, sales to France and the United Kingdom remain limited, officials said.
The largest share of exports came from air defense systems, missiles and rockets, which made up 48% of all transactions, up from 36% in 2023. Satellite and space systems rose sharply, accounting for 8% of deals after representing just 2% the previous year.
Other categories included vehicles and armored platforms (9%), radar and electronic warfare systems (8%), manned aircraft and avionics (8%), surveillance and electro-optics (6%), intelligence and cyber systems (4%), ammunition (3%), firearms and launchers (2%), communication systems (2%), UAVs and drones (1%), and naval platforms (1%).
Officials credited increased global demand for Israeli systems to their use in live combat and rapid development cycles, particularly since the start of the war with Hamas on Oct. 7, 2023.
Amir Baram, director general of the Defense Ministry, said the war has not halted exports. “The new record in Israeli defense exports during a time of war reflects the growing global appreciation for Israeli technology,” he said. “More countries now want to protect their citizens with Israeli weapons.”
Baram, a former IDF major general, said Israel must expand its defense manufacturing base to sustain exports and ensure long-term military readiness. “We’ll work to deepen current markets, enter new ones, and better utilize Israel’s unique defense-tech ecosystem,” he said.
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Kulas noted ongoing logistical challenges, including supply chain disruptions caused by Houthi threats to Red Sea shipping and temporary closures of Ben Gurion Airport due to rocket fire.
He said Israel is responding by offering local production options when requested. “If the purchasing country demands local production, we establish manufacturing operations there,” he said.
Looking ahead, Kulas expressed uncertainty about whether the record performance could be sustained. “It’s hard to say if 2024 results will repeat next year given the complex challenges,” he said.
Still, he pointed to new priorities among clients, including cost-effective interception systems and delivery speed. Interest is rising in Israel’s laser-based Iron Beam system, developed by Rafael Advanced Defense Systems. “Our industries have a clear advantage—we’ve tripled production since the war began,” Kulas said.