The ministry said 2025 also set a record for government-to-government agreements as part of its defense export reform. Those agreements totaled approximately $10 billion and accounted for more than half of total deal volume.
IMOD Director General Maj. Gen. (Res.) Amir Baram and SIBAT Director Brig. Gen. (Res.) Yair Kulas presented the 2025 defense exports report to Defense Minister Israel Katz. The report showed that Israeli defense industries signed hundreds of new contracts worldwide during the year with the support and guidance of the ministry.
More than half of the contracts, or 53%, were mega-deals valued at $100 million or more each. Missile, rocket and air defense systems remained the leading export category, accounting for 29% of total deal volume.
Observation and optronics systems also recorded a sharp increase, rising to 22% from 6% the previous year. Other major categories included radar and electronic warfare, manned aircraft and avionics, C4I and communication systems, weapon stations and launchers, drones and UAVs, satellites and space systems, vehicles and armored personnel carriers, intelligence, information and cyber systems, maritime systems and platforms, and ammunition and armaments.
The ministry said Israeli defense exports were distributed across several regions, led by Europe at 36% and Asia and the Pacific at 32%. The Middle East and North Africa accounted for 15%, North America for 13%, Latin America for 2% and Africa for 2%.
Since October 7, 2023, and throughout the past year, the ministry said Israel’s defense industries have operated under wartime conditions. They maintained continuous production for the Israel Defense Forces while also fulfilling contracts for foreign customers.
The ministry said operational achievements, including during Operation Rising Lion against Iran in June 2025, and the combat-proven performance of Israeli systems across all theaters generated strong international demand. It said those factors helped defense exports cross the $19 billion threshold for the first time.
According to the ministry, the increase in exports, particularly the record level of government-to-government agreements, reflected implementation of its strategy to expand defense exports. The strategy is aimed at supporting IDF force buildup in a challenging budget environment, advancing foreign policy goals, strengthening the defense industry and generating additional defense budget resources.
Against the background of global changes and dynamic market conditions, Katz and Baram initiated a defense export reform. The ministry said the reform includes opening new markets, expanding strategic partnerships with a range of countries and easing export licensing policies, while strengthening and focusing oversight mechanisms to protect classified assets and defense secrets.
“There is a clear and unmistakable thread connecting the IDF’s battlefield achievements across all fronts, the extraordinary capabilities of Israel’s defense industries, and the success of Israeli defense exports around the world,” Katz said. “The fact that Israel continues to break defense 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 defense establishment.”
“These achievements are built on the IDF’s capabilities and those of our broader security forces – in Gaza, Lebanon, Iran, and Yemen,” Katz said. “Defense 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 defense-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.”
“The sharp surge in defense exports reflects the quality of Israel’s defense 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,” Baram said. “Today, our force buildup budget relies heavily on these partnerships, yet we cannot stop there. As part of a defense 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.”
“The 2025 defense export data, totaling over $19 billion – an all-time record – tells a simple story: many countries around the world have increased their defense and procurement budgets, and are interested in Israel’s defense industry,” Kulas said. “Israel’s defense 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 Defense are leading a consistent and deliberate effort to expand Israel’s defense cooperation with countries around the world, to make the capabilities of the industry and the IDF accessible globally,” Kulas said. “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 defense ministries around the world.”
