Israel to invest $140 billion in developing independent arms industry
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Much of the military equipment used by the Israeli army currently comes from the United States.
PHOTO: REUTERS
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- Israel plans to invest US$110 billion over 10 years to develop an independent arms industry, aiming to reduce reliance on foreign suppliers like the US.
- Netanyahu approved 350 billion shekels for this project to ensure Israel's battlefield advantage, especially amid strained military resources.
- Israel's 2026 defence budget will be approximately US$35 billion, 16% of its public budget, a rise from US$20.4 billion before the Gaza war.
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JERUSALEM - Prime Minister Benjamin Netanyahu said on Dec 24 that Israel would invest 350 billion shekels (S$141 billion) over the next decade to develop its own independent arms industry.
Much of the military equipment used by the Israeli army comes from the United States, thanks to a longstanding defence cooperation deal between the key allies.
The country’s military resources have been strained after two years of war on different fronts, with some nations ceasing arm sales to Israel in protest against the death toll in Gaza or imposing restrictions at different points of the war.
“I approved a total of 350 billion shekels over the coming decade to build an independent arms industry for the State of Israel,” Mr Netanyahu told a military ceremony at an air base in southern Israel.
“We want to reduce our dependence on any party, even on friends. The finest minds in our defence industries are hard at work developing weapons systems that will guarantee Israel’s advantage on the battlefield of the future.”
According to the US Congress, Washington provided US$3.3 billion (S$4.24 billion) to Israel in military funding and US$500 million in missile defence cooperation in 2025.
But Israel’s leaders have indicated their intention to shift away from foreign suppliers.
In a controversial speech in September, Mr Netanyahu said Israel was becoming increasingly isolated and had to adopt a “super-Sparta” approach.
Following a backlash after the remark, the Israeli leader later said he was referring to the defence industry, and that the country had to become more self-reliant to avoid potential supply bottlenecks.
In his speech on Dec 24, Mr Netanyahu said developing the country’s arms industry would boost its security.
“We have established our status as a regional power – and in certain fields, as a global one. This brings many other countries closer to us. Peace is made with the strong, not with the weak,” he said.
In 2026, Israel will allocate about 16 per cent of its public budget to defence – around US$35 billion out of an overall budget of US$208 billion, according to government data.
Before the Gaza war sparked by Hamas’ attack on Israel
Mr Netanyahu said developing the country’s arms industry would boost its security.
PHOTO: REUTERS
