Israeli defence industry

AFP An Elbit Hermes 450 unmanned aerial vehicle (UAV) built by Elbit Systems, at Israel's Palmachim Air Force Base (5 July 2023)
Israel's Elbit Systems developed the Hermes 450 unmanned aerial vehicle (UAV) being used in Gaza

Israel has also built up its own defence industry with US help and now ranks as the ninth-largest arms exporter in the world, with a focus on advanced technological products rather than large-scale hardware.

It held a 2.3% share of global sales between 2019 and 2023, according to SIPRI, with India (37%), the Philippines (12%) and the US (8.7%) the three main recipients. The sales were worth $12.5bn (£9.9bn) in 2022, according to the Israeli defence ministry.

Unmanned aerial vehicles (UAVs) made up 25% of those exports, followed by missiles, rockets and air defence systems (19%) and radar and electronic warfare systems (13%), the ministry said.

In September, just before the war began, Germany agreed a $3.5bn deal with Israel to buy the sophisticated Arrow 3 missile defence system, which intercepts long-range ballistic missiles. The deal - Israel's largest-ever - had to be approved by the US because it jointly developed the system.

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