Europe accounted for the largest share of Israel’s defence exports in 2025, fuelled by its defence relationship with Germany, despite other countries such as Spain cancelling major defence deals in the aftermath of the Israeli military offensive in the Gaza Strip. India continues to be a significant market for Israeli defence exports. The demand for combat-proven niche capabilities such as air defence systems, along with a slew of domestic policy measures that the Israeli MoD is taking, are expected to fuel the Israeli defence exports boom further.

The Israeli Ministry of Defense’s (IMoD) International Defense Cooperation Directorate (SIBAT) stated on 2 June 2026 that Israel’s defence exports in 2025 stood at US$ 19.2 billion, a 30 per cent increase over the previous year. Government-to-Government (G2G) agreements accounted for over half of the deal volume at US$ 10 billion, and over 53 per cent of deals exceeded US$ 100 million. Missiles, rockets and air defence systems accounted for nearly 30 per cent of the deal volume, while observation and optronics systems accounted for 22 per cent, as against 6 per cent in 2024.[1] Defence Minister Israel Katz affirmed that Israel’s rising defence exports amid multiple conflicts in which Israel is involved “speaks of the confidence the global community has placed in Israel’s defense establishment” and “reinforce Israel’s position as a leading defense-technology power”.[2]

Israel Defence Exports and European Markets

Europe, at 36 per cent, accounted for the largest share of Israel’s arms exports in 2025, followed by Asia and the Pacific at 32 per cent, the Middle East and North Africa (MENA) at 15 per cent and North America at 13 per cent.[3] Europe accounting for the largest share of Israel’s defence exports in 2025 is significant given that in the aftermath of Israel’s military action in the Gaza Strip following the 7 October 2023 Hamas attacks on Israel, some European countries had restricted arms trade with Israel.

The Spanish Foreign Ministry in February 2024, for instance, stated that “no arms sales operations” have been authorised with Israel since October 2023.[4] In April 2025, Spain cancelled a US$ 7.5 million deal to purchase ammunition from IMI Systems, a subsidiary of Elbit Systems.[5] In June 2025, Spain cancelled a US$ 325 million deal for Spike anti-tank missile systems.[6] The deal was signed a few days before the 7 October 2023 Hamas attacks. In September 2025, the Spanish government further cancelled an October 2023 deal to procure 12 PULS rocket launcher systems from Elbit Systems Limited. The deal to make the rocket systems by a consortium of Spanish companies was reportedly valued at US$ 825 million, with Elbit’s share at US$ 175 million.[7]

The United Kingdom, meanwhile, in September 2024 suspended over 30 arms export licenses (out of around 350) to prevent the export of UK arms to Israel. Then Foreign Secretary David Lammy noted a clear risk that UK arms could be used “to commit or facilitate a serious violation of international humanitarian law provisions”.[8] In August 2025, Slovenia under a liberal coalition government became the first European Union (EU) nation to ban all weapons trade with Israel. This decision was, however, reversed by the centre-right government in June 2026, after assuming power in May 2026.[9]

Pertinently, the Israeli MoD highlighting the country’s rising defence exports came on the heels of the French government’s decision to ban the display of offensive Israeli weapons at the nation’s premier defence and security trade fair, Eurosatory, in Paris, from 15 June to 19 June 2026. The French Armed Forces Ministry stated that only Israeli equipment and systems related to air defence and missile defence may be displayed at the show.[10] Even at the 2024 Eurosatory, as indeed at the 2025 Paris Air Show, restrictions were placed on the participation of Israeli defence companies.

Figure 1. Israel’s Defence Exports 2006–25 (US$ Bn)

Source: “370 million Euro GTG Defense Exports Agreement”,  Israel Ministry of Defense, 10 April 2023.

Given the above, which countries accounted for the largest share of Israeli defence exports in 2025? As per the Stockholm International Peace Research Institute (SIPRI) Arms Transfers Database, Germany accounted for nearly 50 per cent of Israel’s defence exports in 2025, followed by India at 34 per cent and Morocco at about 9 per cent.[11] Over the five years of 2021–25, Germany was the recipient of 21 per cent of Israel’s defence exports, after India at 29 per cent and the United States at 7.8 per cent. Israel, meanwhile, accounted for 10 per cent of German arms exports during the same period and was the third-largest market for them after Ukraine (24 per cent) and Egypt (14 per cent). Overall, Germany was the fourth-largest arms exporter in the world in 2021–25, while Israel was the seventh-largest.[12]

Israel’s largest-ever defence export deal is with Germany for the Arrow 3 ballistic missile defence system, valued at US$ 6.5 billion. While the initial September 2023 deal was........

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