Jerusalem: As Israel's sustained military campaign in Gaza continues to cause widespread devastation, international defense companies are seeing substantial financial gains.
According to Anadolu Agency, from the United States to Europe, arms manufacturers are reporting significant revenue increases and burgeoning order backlogs. This grim scenario underscores how the ongoing conflict has transformed into a lucrative business for the global arms industry.
As of May 2025, data from the Gaza media office indicates that Israel has deployed over 100,000 tons of explosives in Gaza, equating to more than six Hiroshima bombs. This relentless bombardment has resulted in tens of thousands of casualties and extensive destruction across the enclave, providing a financial windfall for prominent defense contractors worldwide.
The United States remains Israel's primary military supplier, with cumulative aid exceeding $310 billion since Israel's inception. A 2024 US report acknowledged that American weapons have been deployed in ways that may conflict with Israel's international legal obligations. Major US defense firms like RTX, Lockheed Martin, and General Dynamics have reported increased sales in the Middle East, with a substantial portion of recent contracts linked to Israel, especially since October 2023.
European defense companies like Britain's BAE Systems and Germany's Rheinmetall are also experiencing a surge in orders as governments enhance military budgets in response to both the Ukraine conflict and the situation in Gaza, intensifying global demand for armaments.
Lockheed Martin, the world's largest defense company, is a central supplier of Israel's military hardware, including the F-16 and F-35 fighter jets. The company reported $5.5 billion in sales to the Middle East since late 2023, alongside a 5.1% increase in global revenues to $71 billion in 2024. Boeing, another major supplier, saw its defense division account for 36% of total sales in 2024, with a rising backlog of military orders reaching $64 billion.
RTX Corporation, the second largest arms manufacturer globally, has sold $6 billion worth of weapons to the Middle East and North Africa since October 2023. The company reported a 17% increase in global sales, reaching $80.7 billion in 2024. General Dynamics, the fifth-largest weapons manufacturer, also recorded a 46% increase in sales to the Middle East and Africa.
Germany's Rheinmetall and the UK's BAE Systems have similarly reported significant revenue growth, driven by increased military demand linked to the ongoing conflict. Rheinmetall's revenues surged 35% in 2024, while BAE Systems saw a 13% increase in global sales.
This confluence of military conflict and economic gain highlights the complex dynamics at play, where the devastation of war fuels a thriving industry for global arms manufacturers.