Who’s buying up Israel’s weapons at record levels? 

Israel’s defense exports soared to an all-time high of $14.8 billion in 2024, even as the country remained embroiled in its longest war and faced increasing diplomatic pressure, especially from Europe, to end its military campaign in Gaza.

The Defense Ministry revealed the figures on Wednesday, noting that 54% of Israeli arms exports were directed to European countries, many of which have ramped up military spending in response to the ongoing war between Russia and Ukraine. Air defense systems dominated the export portfolio, accounting for nearly half of all sales. A standout deal was the $3.8 billion sale of the Arrow 3 missile defense system to Germany, Israel’s largest-ever defense contract.

Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems saw strong demand for their flagship technologies, including the Barak MX and David’s Sling systems. According to Yair Kulas, head of the ministry’s International Defense Cooperation Directorate (SIBAT), Israel’s ability to deliver systems in two to three years, compared to up to seven years for foreign competitors, has become a major selling point, even as the defense industry continues to support the Israel Defense Forces (IDF) in active operations.

While European demand has been largely driven by efforts to replenish arms stockpiles depleted by aid to Ukraine, and to modernize military capabilities, political backlash over the war in Gaza has also impacted the sector. Israeli companies were barred from several major European defense expos in the past year, and some governments have moved to suspend or cancel arms deals. Spain’s Defense Ministry, for example, froze a $300 million Rafael missile contract and previously nixed a $6.6 million ammunition order with Elbit Systems.