Israel’s economic resilience: Growth and investment despite years of war - opinion

Israel's economy is showing remarkable resilience, with significant growth and investment continuing even amidst perpetual wars. Defense giant Elbit Systems exemplifies this strength, boasting an order backlog worth $32 billion, primarily for airborne lasers used in asymmetric warfare. This figure alone represents 4.4% of Israel's $720 billion annual GDP, surpassing the GDP of several nations.

Founded in 1966, Elbit Systems has evolved into a major defense supplier. Its recent growth is fueled by conflicts in the Middle East and Ukraine, alongside a broader European military buildup, increasing demand for Israeli weapons, electronic warfare systems, and defense technologies. Calcalist noted that this substantial backlog indicates not only a large volume of contracted future work but also a significant transformation in the defense industry. Governments are investing in new capabilities, expanding ammunition stocks, and upgrading systems for complex battlefields, rather than merely replacing consumed weapons.

Beyond the defense sector, other indicators point to robust industrial growth. In July alone, several foreign investment and buyout deals involving Israeli companies were completed. China's Tencent is reportedly negotiating to acquire mobile gaming studio SuperPlay from Playtika for an estimated $1-1.5 billion. Singapore's BandLab Technologies acquired AI-powered digital music studio Aiode for tens of millions of dollars. Furthermore, Cisco made a $150-200 million strategic investment in Israeli cybersecurity startup Zafran, extending its total investment in the company.

“

Governments are not simply replacing weapons consumed in recent conflicts. They are investing in new capabilities, expanding ammunition stocks, and upgrading military systems designed for increasingly complex battlefields.