Israeli defense-tech investment set to nearly triple to $1 billion in 2026

The Jerusalem Post · ANNA AHRONHEIM · 2026-11-05 12:44 UTC

"The major advantage of Israeli defense-tech developments is that most of them are combat-proven. These are not theoretical products," said senior defense manufacturing exec. Eitan Mandel.

Investment in Israel's defense-tech sector is expected to nearly triple this year, reaching approximately $1 billion compared with $360 million in 2025, as rising global defense spending and demand for new military technologies draw investors to the industry.

The forecast, presented by Eitan Mandel, head of the Defense Industries Division at the Manufacturers Association of Israel, reflects the growing role of startups in a sector long dominated by major defense contractors.

Speaking at the “Defense Tech: The Next Frontline of Israeli Hi-Tech” conference held during Israeli Hi-Tech Week, Mandel said Israel's recent wars accelerated the development of military technologies and shortened the time it takes to move products from concept to operational use.

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