The Middle East is rapidly asserting itself as a pivotal force in the global defense industry. According to the latest annual report published Monday by the Stockholm International Peace Research Institute (SIPRI), a record nine firms from the region have secured spots in the prestigious Top 100 list of the world’s largest arms producers and military service providers. These companies, spanning Turkey (five firms), Israel (three), and the United Arab Emirates (one), collectively generated approximately $31 billion in revenue in 2024, a substantial increase fueled by heightened demand from conflicts in Gaza and Ukraine.
Israel, Turkey, and UAE: Powering Regional Revenue Surge
The SIPRI report highlights that „in 2024 demand linked to conflicts, especially the wars in Gaza and Ukraine, continued to be a major driver of arms revenue growth for Middle Eastern companies.” Israeli firms have seen remarkable growth, with the three companies featured in the top generating a combined $16.2 billion in 2024, a 16 percent increase from the previous year. Elbit Systems leads the regional pack, ranking 25th globally with $6.3 billion in arms sales in 2024, up from $5.5 billion. This surge is attributed to both Israel’s ongoing military operations in Gaza and high global demand for Israeli military equipment, particularly advanced UAV and counter-UAV capabilities. Israel Aerospace Industries secured the 31st spot, with Rafael closely following at 34th.
The UAE’s Emerging Giant: EDGE Group’s Strategic Debut
The UAE’s state-owned defense giant, EDGE Group, made its debut on SIPRI’s list at 37th, with $4.7 billion in arms sales revenue in 2024. Although EDGE, a conglomerate of over 20 smaller defense firms, is a significant regional player, its prior exclusion from the Top 100 was due to a lack of publicly available data. This revelation comes just days after EDGE made a splash with unveilings at the Dubai Airshow and announced its largest-ever defense export arrangement with Indonesia, estimated at $7 billion.
Turkish Industrial Might: Five Firms Break into the Elite Ranks
While Turkey is no stranger to SIPRI’s Top 100, this marks the first year five of its firms have made the cut. Arms revenues for Turkish companies on the list totaled $10.1 billion in 2024, an 11 percent increase from 2023. Aselsan ranked 47th, experiencing a dramatic 24 percent rise in arms revenue to $3.5 billion in 2024, largely driven by a 65 percent increase in exports. Unmanned aircraft producer Baykar, despite a 12 percent drop in arms revenues in 2024 (to $1.9 billion) after two years of rapid growth spurred by exceptional Ukrainian demand for the Bayraktar TB-2, still saw approximately 95 percent of its sales come from exports. Other Turkish firms in the Top 100 include Turkish Aerospace Industries (65th) and missile producer Roketsan (87th).
A Global Trend: Surging Demand Reshapes the Defense Landscape
Beyond the Middle East, SIPRI reported a global surge in revenues for 77 of the Top 100 firms. This overarching trend highlights a significant shift in the worldwide defense industry, as companies expand production capacities to meet the elevated demand for defense platforms, largely shaped by current geopolitical tensions.
