Despite waging its longest and most expansive war, "Israel" reported record-high arms exports in 2024. Government officials announced on Wednesday, as reported by the New York Times, that arms deals signed last year amounted to nearly $14.8 billion, surpassing the previous record of $13 billion in 2023, according to figures released by the Israeli Ministry of Security.

These figures highlight the rapid wartime increase in arms production and "Israel’s" push to tap new markets, particularly in Europe, where demand for military hardware is rising amid concerns over Russian military activity. The growth in arms exports has provided a rare economic boost to a domestic economy otherwise strained by war.

Europe becomes top buyer 

Over half of "Israel’s" military exports in 2024, about 54%, were directed to European countries. Many of these nations are seeking to replenish their weapon stockpiles and enhance their defense capabilities due to the ongoing war in Ukraine and growing doubts about the reliability of the US as a long-term security partner.

Boaz Levy, CEO of Israel Aerospace Industries, stated in a recent interview that "there is a real need in the world, this conflict in Israel is not the only one."

However, the intensifying war in Gaza and regional aggression, including on Lebanon, Syria, Iran, and Yemen, have led some European nations to reconsider their arms deals with "Israel". On Tuesday, Spain’s Ministry of Defense canceled a $325 million anti-tank missile contract, citing a "gradual disengagement from Israeli technology."

The UAE, Bahrain, and Morocco, all signatories of the 2020 so-called Abraham Accords, have sharply increased their arms purchases, now accounting for 12% of total regional imports, up from just 3% in 2023.

US military aid remains critical to 'Israel'

In parallel to its arms exports, "Israel" received at least $17.9 billion in military aid, including weapons, from the US in the 12 months following October 7, 2023. Experts noted this figure is a conservative estimate, yet underscores "Israel’s" deep dependence on US military support.

Although "Israel’s" arms exports are modest compared to the US, whose foreign military sales reached at least $200 billion in the 2023 fiscal year, they represent a strategic economic pillar. Nearly 48% of the exports were comprised of missiles, rockets, and air defense systems, although specific deal breakdowns were not disclosed.

Zain Hussein, an arms transfers researcher at the Stockholm International Peace Research Institute, said "Israel" has relied “heavily” on US military assistance, which has helped ease the pressure on its domestic weapons industry.

Rising concerns over sustainability

In 2014, "Israel" adopted a strategy to keep its weapons assembly lines operating at a low pace during peacetime, allowing for rapid scaling when needed. According to NYT, this policy paid off after October 2023, helping "Israel" avoid the supply chain disruptions that have plagued Western arms manufacturers since the start of the war in Ukraine.

However, prolonged fighting has depleted "Israel’s" reserves of key security systems. Analysts at the Middlebury Institute of International Studies in California reported that by October 2024, at least 30 Iranian ballistic missiles struck southern parts of "Israel" without interception, an indication that its missile defense stocks had run out. The US responded by dispatching a Terminal High Altitude Area Defense (THAAD) system within days.

Despite these challenges, "Israel" continued to export air defense systems to European clients. Germany is set to receive Arrow missile batteries, designed to intercept long-range ballistic missiles, under a $4.3 billion deal signed in September 2023. This remains the largest foreign defense deal in "Israel’s" history.

While some of the weapons sold abroad may differ in configuration from those used by the Israeli military, experts warn that pulling back from foreign markets could risk both economic and diplomatic setbacks.

Bradley Bowman, a military expert at the Foundation for Defense of Democracies in Washington, noted that the long production timelines for some systems mean they would not be immediately available for "Israel’s" own use.

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