Israel becomes world’s eighth-largest arms exporter with Iron Dome missiles leading demand from Europe, India and Muslim countries
Israel’s defense exports reached a record $14.79 billion in 2024, marking a 13% increase from the previous year, according to the Israeli Defense Ministry announced in June 2025.
The surge in sales comes as Israel unveiled its Iron Beam laser defense system, which the military confirmed has successfully intercepted 35 Hezbollah drones during combat operations, making Israel the first country to operationally deploy laser weapons in warfare.
Record arms exports
Israel ranked as the world’s eighth-largest arms exporter in 2024, with over half of deliveries going to European militaries, Reuters reported. Germany and Finland were the largest European buyers, according to the Defense Ministry.
Air defense systems, missiles and rockets led the export categories. Additional customers included India, Thailand, Greece, and Muslim-majority countries Morocco, the United Arab Emirates and Bahrain.
Iron Beam deployment
Defense Minister Israel Katz announced in March 2025 that the Iron Beam system would be operational by the end of the year. The Israeli military confirmed in May that laser systems had intercepted approximately 40 unmanned aerial vehicles during the Gaza conflict, with the majority being Hezbollah UAVs from the northern border.
The Iron Beam is a 100-kilowatt class high-energy laser weapon system capable of engaging threats at ranges up to several kilometers, according to Rafael Advanced Defense Systems, the system’s developer.
Rafael chairman Yuval Steinitz told Fox News the cost per interception is between $1 and $2, compared to conventional interceptor missiles that cost between $100,000 and $1 million. The system engages targets at the speed of light, he said.
Development partnership
Rafael developed the Iron Beam in partnership with U.S.-based Lockheed Martin. The Israeli Ministry of Defense signed a 2 billion shekel ($536 million) contract in October 2024 to accelerate development, with Rafael as the main developer and Elbit Systems supplying the laser cannon.
The technology received $1.2 billion in funding from the Pentagon and is being shared with U.S. Army directed energy programs, Steinitz said.
The Israeli military plans to initially deploy Iron Beam systems in northern Israel, where incoming threats from Lebanon have short flight times.
