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Israel's Arms Industry

Israel's military sector is made up of over 200 public and private companies, dominated by three state-owned ones: Israel Aircraft Industries (Israel's biggest employer outside government), Israel Military Industries and Rafael. Private company Elbit Systems is also significant.

Israel is notorious for selling arms to some of the world's most abhorrent regimes when other countries will not. It was the main arms supplier to apartheid South Africa, and supplied many Guatemala between 1977 and 1981 when tens of thousands were 'disappeared'. More recently it has supplied the military junta in Burma.

Israel's military budget is usually around 9% of its GDP, three times higher than that of the US. This, together with the continuing conflict, means that there is plenty of opportunity to test new equipment 'in the field'. The UK's Ministry of Defence has trialled Rafael's Gill/Spike anti-tank missile despite its use by the Israeli Army against civilians in south Lebanon and the occupied territories.