16 indeed born out of necessity. From the state’s founding in 1948, surrounding hostility meant it had to innovate to survive. What began as a domestic drive to equip the Israel Defense Forces quickly spilled outward. Over decades, a cluster of companies - Israel Aerospace Industries (IAI), Rafael Advanced Defense Systems, and Elbit Systems - grew into global names, offering everything from missiles and radars to satellites and submarines. Critical technologies continue to advance quickly and have spawned a growing number of defense-tech startups in need of support and funding. On September 15, 2025, the Israel Ministry of Defense (IMOD) Director General, Maj. Gen. (Res.) Amir Baram stated: “We are witnessing a dramatic surge in defense budgets worldwide. Global defense expenditures in 2024 reached approximately USD2.7 trillion, representing a 20% increase compared to 2023 - the most substantial increase since 1988.” He adds: “In the past week alone, we finalized agreements totaling USD2.5 billion. While confidentiality prevents me from identifying our partner nations, these governments clearly recognize the strategic value of sustained security investments in today’s volatile global landscape.” Over half of the deals with Europe; still strong in Asia Over half of the contracts signed in 2024 were concluded with European countries. In September 2023, Israel and Germany signed a €4 billion agreement for the Arrow-3 missile defense system – the largest defense export agreement in Israel’s history - with the first delivery milestone to Germany set for the end of 2025. This past October, Berlin also agreed to purchase approximately €2 billion worth of the Rafael Advanced Defense Systems “Spike missile” anti-tank missiles. In December 2024, Israel and Slovakia, signed a €560 million agreement to supply the East European country with the Barak MX Integrated Air Defense System, produced by Israel Aerospace Industries. It too was the largest defense export agreement between the two nations. In July 2025, Romania signed a €2 billion framework agreement with Israel’s Rafael to procure state-of-the-art Short-Range and Very Short-Range Air Defense systems. In August 2025, the Czech Republic received the first shipment of the four SPYDER systems from Rafael. Just one day after joining NATO, Finland announced it would procure Israel’s David’s Sling system. A November article in Reuters reported that Greece is in negotiations with Israel to purchase modern anti-aircraft and artillery systems, as part of a €3 billion multi-layer defense initiative dubbed “Achilles Shield.” According to a Defense Post article (November 14), Israel’s BlueBird Aero Systems has opened a new
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