Israel Plans $110 Billion Defense Investment

Israel plans to invest around $110 billion over the next decade to strengthen the independence of its domestic military industry, Prime Minister Benjamin Netanyahu announced on Wednesday, according to Israeli media reports.

Speaking at a graduation ceremony for new pilots in the Israeli Air Force, Netanyahu said the long-term program aims to reduce Israel’s reliance on foreign arms suppliers, including close allies. His remarks were reported by Times of Israel.

The investment plan, valued at 350 billion shekels, is intended to secure Israel’s strategic autonomy in weapons production at a time of growing international restrictions on arms exports. Several European countries, as well as the United States, Israel’s closest ally, have imposed varying limits on weapons supplies following the war in Gaza, a move Netanyahu has strongly criticized.

Netanyahu pointed in particular to Germany, noting that Berlin, like other states, is seeking to purchase increasing quantities of Israeli-made weapons systems. Germany had temporarily suspended some arms exports to Israel after the Gaza conflict, which strained relations between the two countries.

Despite those tensions, defense cooperation has continued. Last week, Germany and Israel signed a major contract to expand the Arrow 3 missile defense system supplied to the German armed forces.

Designed to counter potential long-range missile threats, including from Russia, the deal is valued at approximately €5.7 billion ($6.7 billion), making it the largest arms export agreement in Israel’s history.

Israeli officials said the scale of the Arrow 3 agreement highlights the global demand for Israel’s defence technology, even as some partners reassess their export policies.

Germany has been one of Israel’s key defense suppliers for decades, while also becoming an increasingly important customer for Israeli military systems.

The new $110 billion investment plan is expected to accelerate the growth of Israel’s defense sector and reduce vulnerability to future supply restrictions, reinforcing the country’s ambition to maintain long-term military and industrial self-sufficiency.