Israel’s military sector is made up of over 200 public and private companies. It is dominated by Elbit Systems and three state-owned companies: Israel Aircraft Industries, Israel Military Industries and Rafael.
The UK spends millions of pounds each year on “battle-tested” arms from Israeli companies. One growing link is in the area of unmanned aerial vehicles or drones. In 2016, Israeli company Elbit, in conjunction with Thales UK, completed delivery of 54 Watchkeeper WK450 UAVs as part of an £800 million contract. The Watchkeeper is based on Elbit’s Hermes drone, which has been exported to 11 countries, according to SIPRI. More recently in 2021, the UK awarded a contract to Israel Aerospace Industries for 4 unmanned Jaguar Remote Patrol Vehicles (RPVs), as part of an experimental programme for unmanned land systems. Jaguars armed with machine guns have been used by Israel to help enforce the siege of Gaza. Months into the Israeli genocidal assault on Gaza, the UK Ministry of Defence awarded a new contract to Elbit Systems UK, taking the total number of contracts awarded since 2012 to 25; and totalling more than £355m.
More details of UK purchases of arms and security equipment from Israel can be found here.
Israeli arms companies
A number of Israel’s leading arms companies are listed below.
- Elbit Systems, is Israel’s largest arms producer, whcih is traded on both the Israeli stock exachange and the US NASDAQ. Elbit was ranked by SIPRI as the 27th largest arms company worldwide in 2023. Its portfolio includes systems for military aircraft and helicopters, drones, armed remote control boats, land vehicles and for command and control. Elbit describes its drones as the backbone of Israel’s drone fleet and they were extensively used by the Israeli military in the 2014 and current (2023-) assault on Gaza. Elbit has four subsidiaries in the UK: Instro Precision, Elite KL, Ferranti Technologies, and UAV Engines; and two joint ventures: UAV Technologies (with Thales UK), and Affinity (with KBR).
- Israel Aerospace Industries is owned by the Israeli government. It was ranked as the 34th largest arms company worldwide (excluding China) in 2023. Its website states that over the past 70 years “the company has grown to become a world leader in both the defense and commercial markets, developing, producing and delivering state-of-the-art technologies and systems across a range of domains, including air, land, sea, space, cyber, homeland security and ISR.” IAI produces a wide range of weaponry including a large number of drones. It claims that its MALAT Divisions “are global leaders in comprehensive UAS-based solutions – offering the widest range of combat-proven systems”.
- Rafael manufactures advanced defense systems for the Israeli Defense Forces and the defense establishment, as well as for foreign customers around the world. Its products include Remote-Controlled Weapon Stations, communication systems, surveillance and targeting systems, and many types of missiles. Rafael was ranked as the 42nd largest arms company worldwide in 2023.
- IMI Systems, formerly Israel Military Industries, was formerly a state-owned company, but was privatized and sold to Elbit Systems in November 2018. It produces guns (including the Uzi submachine gun), artillery, armoured vehicles, bombs, and missiles.
- Plasan Sasa, which is owned by a kibbutz in northern Israel, produces armour plating for vehicles.
- RADA Electronic Industries is a NASDAQ-listed company producing radars, navigation systems, and other military electronics.
DSEI arms fair
Israeli arms companies, including all of the above except IMI Systems, are regular exhibitors at the DSEI arms fair. In years past, Israel has had a National Pavillion at DSEI, and is confirmed as exhibiting at the pavilion for DSEI 2025. These pavillions group together companies from the same country, and are a key feature of the arms fair. The Israeli pavillions are hosted by SIBAT, the body within the Israeli Ministry of Defence that promotes arms exports.
Israel’s arms exports
Israel is one of the world’s leading arms exporters. Very little official information is available on Israeli arms exports, but annual figures for arms export orders are provided by the Ministry of Defence. In 2024, Israel’s arms export orders reached a record $14.9 billion, amounting to double the value of exports of five years ago. According to the MOD figures, Europe was the largest purchaser of Israeli defense goods, buying 54% of the total exports in 2024 — up from 35% in 2023 — followed by the Asia-Pacific region at 23%. North America accounted for 9%, while the United Arab Emirates, Bahrain, and Morocco, which normalised relations with Israel in the 2020 Abraham Accords, accounted for 12% of the arms purchases — a significant increase from 3% in 2023.
One area of Israeli arms sales that has increased is in the area of surveillance technology, which has been used by numerous repressive regimes to spy on political dissidents and journalists. However, these only amounted to 4% of all sales in 2024.
Israel’s arms export customers include Myanmar, where they have dealt with leading military figures associated with the genocide against Myanmar’s Rohingya population. Recent sales to Myanmar include naval patrol boats fitted with Elbit remote weapons stations, which continued to be delivered as the Myanmar armed forces were being accused of war crimes. Israel also sells considerable quantities of small arms and light weapons (SALW) to many African countries, and Israeli weapons, brokers, and trainers, have shown up in several African conflict zones.
A detailed database of Israeli military and security exports was launched in 2021 by the American Friends Service Committee.
