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Wednesday, 24/9/2025 | 05:01 GMT+7

Gaza conflict impacts Israeli arms industry

Israel's arms industry is facing consequences as allies and long-term partners turn away due to the Gaza conflict.

On 15/9, Prime Minister Benjamin Netanyahu acknowledged Israel's increasing international isolation regarding the Gaza conflict, adding that Israel would have to become more self-reliant in the coming years.

"This is the first time Netanyahu, a notoriously hardline leader, has acknowledged the international community's outrage over Israel's conduct of the war in the Gaza Strip," observed CNN analysts Nic Robertson and Florence Davey-Attlee.

At the UN General Assembly in New York, many Western nations, including long-term allies and partners of Israel, declared recognition of a Palestinian state to promote peace. This move signals their disappointment with Israeli leadership and highlights the challenges Tel Aviv faces.

Israeli army tanks near the Israel-Gaza border on 29/7. Photo: AFP

Israeli army tanks near the Israel-Gaza border on 29/7. Photo: AFP

Israel is a major arms exporter, but its military also relies heavily on imported aircraft, guided bombs, and missiles for airstrikes across the Middle East.

Advocacy groups and some politicians in Israel's Western allied nations have called for a halt to arms exports to Tel Aviv. They oppose the use of their countries' weapons against Palestinians in Gaza and view this as a sanction against Israel for not protecting civilians or ensuring humanitarian aid to the region.

In August, Germany, the second-largest arms exporter to Israel after the US, announced a halt to weapons exports that could be used in the Gaza Strip. This move, protesting Israel's planned expansion of operations in the area, marked the first time Germany publicly refused military support to its long-term ally.

Chancellor Friedrich Merz made this decision following mounting public and coalition partner pressure over the humanitarian crisis in Gaza. While acknowledging Tel Aviv's right to disarm Hamas and rescue hostages, he stated that Israel's military decisions made achieving these goals "increasingly difficult".

Germany has long been one of Israel's strongest supporters. However, a July poll indicated that 73% of Germans want stricter controls on arms exports to Israel, with 30% supporting a complete ban.

According to the Stockholm International Peace Research Institute, Germany supplied 30% of Israel's major arms imports from 2019-2023, mainly naval equipment, including Sa'ar 6-class corvettes used in the Gaza conflict.

In the months following the Hamas attack on Israel on 7/10/2023, Germany increased arms exports to Israel tenfold, according to Reuters.

The UK, another Israeli ally, has granted arms export licenses to Israel totaling 780 million USD since 2008. Most of these are components used in fighter jets, according to the Campaign Against Arms Trade (CAAT), a UK-based activist group.

However, in 9/2024, the UK government announced a suspension of 30 export licenses for military equipment used by Israel in Gaza. Earlier this month, it also barred Israeli officials from the Defence and Security Equipment International (DSEI) exhibition, stating that "the decision to escalate the Gaza operation was wrong". The ban prevented the Israeli Ministry of Defence from setting up a national pavilion to showcase domestic weapons.

However, individual Israeli arms manufacturers could still attend DSEI. This sparked protests from Palestine supporters outside the exhibition, accusing the UK of "complicity" with Israel.

The UK government also faces internal pressure. Over 20 MPs, mostly from the ruling Labour Party, signed a petition urging the government to exclude Elbit Systems UK from a 15-year, 2.7 billion USD training contract with the UK Ministry of Defence due to its ties to Israel.

MP Brian Leishman stated that Elbit's involvement in the F-35 fighter jet deal with Israel implicated the company in "casualties across Gaza". He believes this would have reputational, legal, and ethical consequences for the UK government.

According to CAAT, the Israeli military operates 45 F-35 stealth fighters and has ordered 36 more. Israel has used these fighters to bomb Gaza, including the designated humanitarian zone of Al-Mawasi, in an attempt to eliminate Hamas military wing commander Mohammed Deif.

On 21/9, UK Prime Minister Keir Starmer recognized a Palestinian state, a move long opposed by Israel. He criticized Israel's relentless and escalating attacks and recent ground campaign, which have caused famine and "totally unacceptable" devastation in Gaza.

This summer, the French government closed several pavilions of major Israeli arms companies, including Elbit Systems and Rafael, at the Paris Air Show, the world's largest aerospace trade fair. This followed the companies' refusal to remove offensive weapons from their displays.

After Israel's missile strike targeting Hamas leadership in Doha, Qatar, the United Arab Emirates (UAE) banned Israeli government officials and defense companies from the Dubai Airshow scheduled for November.

Israeli arms manufacturers have long been known for their advanced technologies, exported worldwide. However, growing international criticism of the Gaza conflict threatens Tel Aviv's position in some markets.

This month, Spain canceled hundreds of millions of USD in arms deals with Israeli companies. Prime Minister Pedro Sanchez, who recognized a Palestinian state in 5/2024, described Israel's war in Gaza as "barbaric" and called for further sanctions.

Israeli air defense intercepts an Iranian missile over Tel Aviv on 18/6. Photo: AFP

Israeli air defense intercepts an Iranian missile over Tel Aviv on 18/6. Photo: AFP

Oded Yaron, a reporter specializing in the arms industry and technology for Haaretz, warned that Israel cannot afford to let other Western nations follow Spain's lead. "Our economy is not strong enough to be self-sufficient. If we can't sell weapons to other countries, it will definitely hurt Israel's defense," he told CNN.

The Israeli Ministry of Defence reported 14.7 billion USD in arms exports in 2024, a 13% increase from the previous year, with over half of the contracts with European countries. Yaron attributed the strong sales partly to the "battle-proven" nature of Israeli military equipment.

Two years of war in Gaza, along with operations in Lebanon, Iran, and Yemen, have solidified Israel's position as a leading arms supplier. The Arrow air defense system, produced by Israel Aerospace Industries (IAI), successfully intercepted Iranian ballistic missiles during the 12-day conflict last summer.

A salesperson at DSEI said business was "booming" because customers "like the way Israel protects its people" and want "battle-tested" equipment.

But Yaron warned that this boom could quickly cool down as political pressure mounts in Western nations that buy Israeli weapons, adding that "as the war in Gaza drags on, it will increasingly become a big problem".

Thanh Tam (According to CNN, Reuters, DW, WSJ)

By VnExpress: https://vnexpress.net/chien-su-gaza-gay-ton-hai-nganh-cong-nghiep-vu-khi-israel-4942309.html
Tags: Gaza Strip Israel

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