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Israel Announces 350 Billion-Shekel, 10-Year Drive to Build Independent Arms Industry

The plan responds to recent export curbs by partner countries.

Overview

  • Prime Minister Benjamin Netanyahu unveiled the investment at a military ceremony, calling the buildup essential for Israel’s security.
  • He said Israel intends to reduce dependence on other countries, including allies, for defense supplies.
  • Several governments have suspended or restricted arms sales to Israel over the past two years, and Germany temporarily halted exports during the Gaza war.
  • The government expects defense to account for about 16% of the 2026 state budget, roughly $35 billion, compared with about $20.4 billion before the Gaza conflict.
  • The United States provided $3.3 billion in military aid in 2025 plus $500 million for missile-defense cooperation, reflecting continued support as Israel pursues greater self-sufficiency.