Prime Minister Benjamin Netanyahu said Wednesday that Israel would invest $110 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 co-operation 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 at 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,” Netanyahu said at 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 U.S. Congress, Washington provided $3.3 billion to Israel in military funding and $500 million in missile defence co-operation in 2025.
But Israel’s leaders have indicated their intention to shift away from foreign suppliers.
In a controversial speech in September, 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 Wednesday, Netanyahu said developing the country’s arm 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 $35 billion out of an overall budget of $208 billion, according to government data.
Before the Gaza war sparked by Hamas’ attack on Israel in October 2023, the country’s defence budget was around $20.4 billion.
