Tel Aviv: The Israel Ministry of Defence (IMOD) announced that Israel’s all-time defence export record has been broken for the fifth consecutive year, with $19.2 billion in 2025 – a nearly 30% surge compared to the previous year, more than doubling in five years and quadrupling in a decade. As part of the Ministry’s defence export reform, 2025 also set an all-time record for government-to-government (GTG) agreements, totaling approximately $10 billion and accounting for over half of total deal volume.
IMOD Director General, Maj Gen (Res.) Amir Baram, and the Director of the Ministry’s International Defence Cooperation Directorate (SIBAT), Brig Gen (Res.) Yair Kulas presented Defence Minister Israel Katz with the 2025 defence exports report, revealing that defence industries signed hundreds of new contracts worldwide throughout the year, with the support and guidance of the IMOD, totaling $19.2 billion. Over half of these deals (53%) were mega-deals valued at $100 million or more each.
Missile, rocket, and air defence systems continued to lead in 2025, accounting for over a quarter (29%) of total deal volume. Another notable surge was recorded in observation and optronics systems, rising to 22% from 6% the previous year.
Since October 7, 2023, and throughout the past year, the IMOD and Israel’s defence industries have operated under wartime conditions, maintaining round-the-clock production for the IDF while simultaneously fulfilling contracts for foreign clients. The unprecedented operational achievements – including during Operation Rising Lion against Iran in June 2025 – together with the combat-proven performance of Israeli systems across all theaters of operation, generated strong international demand for Israeli defence technology. 2025 continued the upward trajectory in defence exports, crossing the $19 billion threshold for the first time.
The sharp surge in Israeli defence exports, with particular emphasis on the record GTG figures, reflects the real-world implementation of the IMOD’s strategy to expand defence exports as a cornerstone of ensuring the IDF’s force buildup in a challenging budgetary environment, advancing foreign policy goals, strengthening the defence industry, and generating additional budgetary resources for defence.
With this understanding, and against the backdrop of sweeping global changes and dynamic market conditions, Defence Minister Israel Katz and Director General Maj Gen (Res.) Amir Baram initiated a defence export reform – encompassing the opening of new markets, the expansion of strategic partnerships with a range of countries, and significant easing of export licensing policies, alongside a strengthening and focusing of oversight mechanisms to protect classified assets and defence secrets.
Significant Tiers of Defence Exports: Missile, rocket, and air defence systems (29%), observation and optronics (22%), radar and EW (11%), manned aircraft and avionics (11%), C4I and communication systems (7%), weapon stations and launchers (6%), drones and UAVs (4%), satellites and space systems (3%), vehicles and APCs (2%), intelligence, information and cyber systems (2%), maritime systems and platforms (2%), and ammunition and armaments (1%).
Defence Export Data by Geographic Distribution: Europe (36%), Asia and the Pacific Region (32%), MENA (15%), North America (13%), Latin America (2%), and Africa (2%).
Distribution of Agreements by Financial Scope: Agreements over $100 million (53%), agreements between $50-100 million (13%), agreements between $10-50 million (19%), and agreements up to $10 million (15%).
Defence Minister, Israel Katz, commented, ״There is a clear and unmistakable thread connecting the IDF’s battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defence industries, and the success of Israeli defence exports around the world. The fact that Israel continues to break defence export records even in the midst of a third year of war speaks to the tremendous respect and confidence the global community has placed in Israel’s defence establishment. These achievements are built on the IDF’s capabilities and those of our broader security forces – in Gaza, Lebanon, Iran, and Yemen. Defence exports are a mirror of Israeli strength, ingenuity, and the ability to think differently. The growing export figures reinforce Israel’s position as a leading defence-technology power, but they also carry a responsibility: to keep innovating, to keep raising the bar, and above all to continue delivering for the IDF’s operational needs during wartime – while meeting rising demand from partners around the world.״
IMOD Director General, Maj Gen (Res.) Amir Baram, said, “The sharp surge in defence exports reflects the quality of Israel’s defence industry, global demand, the IDF’s operational successes, and our unique ecosystem – but it is also the result of a deep reform carried out by the Ministry over the past year to reduce regulation and open new markets, which led to landmark deals. Today, our force buildup budget relies heavily on these partnerships, yet we cannot stop there. As part of a defence industrial policy, we must advance complementary measures – investment in research and development and the expansion of production lines across the industries. This is the essential step for ensuring independence in critical munitions and interceptors, maintaining technological superiority, and generating Israel’s next surprises.
SIBAT Director, Brig Gen (Res.) Yair Kulas, remarked, “The 2025 defence export data, totaling over $19 billion – an all-time record – tells a simple story: many countries around the world have increased their defence and procurement budgets, and are interested in Israel’s defence industry. Israel’s defence industry is initiative-taking, dynamic, and creates effective solutions across air, sea, and land, at the forefront of technology. SIBAT and the Israel Ministry of Defence are leading a consistent and deliberate effort to expand Israel’s defence cooperation with countries around the world, to make the capabilities of the industry and the IDF accessible globally. Behind the numbers stands an industry that has proven a unique capability – supplying the IDF with munitions and systems for a full-scale military campaign, while simultaneously expanding export markets and signing numerous deals with governments and customers around the world. The historic record in government-to-government (GTG) deals – approximately $10 billion – is not only an economic figure; it reflects the deepening of strategic partnerships and the growing international trust that the Ministry has built with defence ministries around the world.”
-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
