Israeli Prime Minister Benjamin Netanyahu announced on Wednesday that his country will invest more than $100 billion in weapons production over the next ten years, aiming to achieve as much independence as possible and strengthen its defense industry.
“I approved, along with the defense minister [Israel Katz] and finance minister [Bezalel Smotrich], a sum of 350 billion shekel [$108 billion] over the next decade to build an independent Israeli munitions industry,” Netanyahu said at a military event.
“We want to reduce our dependence on all players, including friends,” the prime minister emphasized, after some of Israel’s partner countries, including the United States, the United Kingdom and Germany, imposed restrictions on arms sales to Israel since the beginning of the war in Gaza.
Netanyahu did not disclose how Israel is expected to secure such a large sum of money.
Israel’s economy is under significant strain due to the ongoing Gaza conflict, facing slower growth, soaring military spending (over 8% of GDP), increased debt, and labor shortages from reservist call-ups, impacting sectors like tech, tourism, and exports
.While strong significant US aid has cushioned the blow, persistent international boycotts, rising costs, and political instability threaten long-term prosperity, leading to concerns about credit ratings and future fiscal health