During the year 2023, the Israeli army’s military budget recorded about $31 billion, after adding about $8 billion in the last months of last year as an additional cost for the ongoing war, reaching a record level after it had not exceeded $23 billion in 2022.
On the other hand, Israel has an advanced global position in the manufacture and export of weapons, as Tel Aviv produces a wide range of military products, starting from light weapons and ammunition, all the way to complex electronic systems and the most advanced drones and tanks.
The advanced defense industry allowed Israel to occupy advanced positions in arms exports, which in 2023 amounted to about $13 billion, according to the Stockholm International Peace Research Institute.
Israeli arms exports accounted for a 2.3 percent share of global sales between 2019 and 2023. India About 37 percent of exports Israel For weapons, acquired The Philippines at 12 percent, and the United States at 8.7 percent.
On the other hand, air defense systems accounted for about 36 percent of those exports, followed by radar and electronic warfare systems at 11 percent, shooting equipment at 11 percent, and drones and electronics at 9 percent.
This military empire was built by 3 major defense companies:
Elbit Systems Company
Elbit Systems was founded in 1966 and has a market value of about $9 billion. It employs more than 19,000 people in dozens of countries across five continents, and specializes in the military technology industry.
Hermes marches are one of the products that the company is proud to manufacture.
The company announced that its revenues during the second quarter of this year increased by 12 percent year-on-year, reaching $1.63 billion.
The increase in revenues comes against the backdrop of increased internal demand due to the continuing war Gaza The conflict with Hezbollah intensified, internal demand for weapons increased by about 27 percent, and the company recorded a backlog of orders worth $21.1 billion.
Rafael Advanced Defense Systems Company
Rafael was founded in 1948 under the leadership of Shlomo Geyer. Its name was changed in 1952 to Research and Design Management, and after that it bore the name Rafael.
The company is responsible for developing the most prominent Israeli air defense systems, such as the “David’s Sling” air defense system, which is a “surface to air” missile system developed in partnership with the American company Raytheon, and was designed to intercept medium- and long-range missiles and cruise missiles, in addition to the Iron Dome, which is the first The world’s largest air defense system for intercepting short-range missiles and artillery shells, in addition to other air defense systems.
The company’s sales volume in the second quarter of 2024 reached about one billion dollars, an increase of 25 percent, compared to the same period last year.
The total orders in the second quarter amounted to $1.736 billion, an increase of 65 percent, and the number of late orders reached about $15 billion.
In the first half of the current year, the company’s sales increased by 28 percent to $2.1 billion, and net profit in the same period reached $98 million.
The company’s military industries complexes were the target of missiles Hezbollah On more than one occasion since the beginning of the military escalation with Israel since October 8th.
Israeli Aerospace Industries
The Israel Aerospace Industries Corporation was established in 1953, and focuses primarily on engineering, aviation, and advanced electronics, in addition to aviation systems, surveillance systems, and radars, and employs about 14,000 people.
During the past year, the company’s revenues grew by 7 percent to reach about $5.3 billion compared to 2022.
As for the first half of the current year, sales grew by about 12 percent compared to the first half of 2023, reaching $2.8 billion, while the percentage of sales increase on a quarterly basis reached 13 percent.
This increase in sales comes against the backdrop of the ongoing war Gaza Tensions on the northern front, in addition to geopolitical tensions in the Middle East.
On the other hand, the net profit of the Israeli Aerospace Industries Company increased in the first half of this year to $554 million, which represents 18 percent of total arms sales.
