Israeli Defense Exports Face Uncertainty Amid Global Political Shifts
Israeli defense industries face international uncertainties and domestic political shifts that threaten lucrative global arms contracts, despite a record $19.2 billion in exports last year.
Israeli defense industries face mounting uncertainty regarding major international arms deals as global political shifts and upcoming domestic elections threaten to stall lucrative contracts. According to a senior defense official, current deals are awaiting public legitimacy as foreign leaders grow increasingly sensitive to domestic public opinion amid the ongoing war in Gaza and mounting international criticism of Israel.
While Israeli defense exports reached an all-time high of $19.2 billion in 2025, defense officials emphasize significant untapped potential. The Ministry of Defense continues to push for Government-to-Government agreements to bypass bureaucratic hurdles, including a recent $150 million deal to supply Cyprus with an offshore patrol vessel equipped with Rafael systems.
However, shifting political landscapes abroad pose fresh challenges. In Serbia, recent elections saw the defeat of long-serving populist leader Aleksandar Vucic, who had maintained close ties with Israeli defense contractors such as Elbit Systems. The political upheaval casts doubt on the future of bilateral defense cooperation, including a massive $1.65 billion Elbit contract signed in the summer of 2025 for advanced drones and artillery systems.
Similarly, Brazil's political climate remains complicated following the reelection of President Luiz Inacio Lula da Silva, a vocal critic of Israel. Despite Lula's hostile stance, Israeli firms continue advancing commercial ties, including the supply of Hermes 900 unmanned aerial vehicles and negotiations over dozens of ATMOS self-propelled howitzers, though the scheduled signing ceremony for the initial batch was recently postponed.
