Israel’s three largest defense contractors, Rafael Advanced Defense Systems, Elbit Systems, and Israel Aerospace Industries (IAI), together hold an order backlog valued at more than $65 billion USD, equivalent to over 250 billion shekels.

This extraordinary figure highlights the rapid expansion of Israel’s defense industry, which has been growing faster than that of any other country in the world.

The backlog began to build up in late 2023, immediately after the October 7 Hamas attack, when global demand for Israeli defense technology surged.

By 2024 and 2025, contracts from NATO members, Asian allies, and other international partners overwhelmed production schedules, creating a pipeline of orders that will take years to fulfill.

Rafael, the developer of Iron Dome, David’s Sling, and the new Seabreaker missile, has signed multi‑billion‑dollar contracts with European and Asian nations seeking proven missile defense systems.

Elbit Systems, headquartered in Haifa, has expanded its portfolio of drones, cyber defense platforms, and precision munitions, securing deals worth billions with countries such as the United Kingdom and Australia.

Israel Aerospace Industries, builder of the Arrow missile defense system and Heron UAVs, has landed contracts with Germany, India, and the United States, each worth hundreds of millions to several billion dollars.

Israel’s defense exports exceeded $13 billion USD in 2024, a record that placed the country among the world’s top ten arms exporters.

Analysts note that Israeli technology is popular because it is combat‑tested, developed under constant operational pressure, and integrates cutting‑edge artificial intelligence and cyber capabilities.

Brig. Gen. (res.) Pini Yungman of Rafael has emphasized that foreign militaries value Israeli systems precisely because they have been proven effective in real combat scenarios.

The backlog is expected to be gradually eliminated over the next five to seven years, with deliveries scheduled through 2030.

Production facilities at Rafael in northern Israel, Elbit in Haifa, and IAI in Lod and Ashdod are operating at maximum capacity, with thousands of new employees hired since 2024 to accelerate output.

The buildup reflects both the urgency of global rearmament in response to Russian aggression in Ukraine and rising tensions in the Indo‑Pacific, as well as the extraordinary appeal of Israeli innovation.

Israel’s defense industry, once considered niche, has become a global leader, with Rafael, Elbit, and IAI driving a backlog that symbolizes both the scale of international demand and the unmatched reputation of Israeli technology.