New Delhi: Israel’s wars across the region have far from slowed its defence exports. Instead, sales more than doubled between 2020 and 2025, with Abraham Accords partners emerging as an increasingly important market. A new report by the International Institute for Strategic Studies (IISS) shows Israeli defence exports rose 130 percent from $8.3 billion in 2020 to $19.2 billion in 2025, with the UAE, Morocco and Bahrain accounting for a growing share.
A IISS report, titled ‘Defence Dividends of the Abraham Accords’, shows that the UAE has benefited the most from the Abraham Accords. The report was released on 1 October.
The IISS report states that on a global scale, Israeli defence exports have risen even at a time Israel was busy fighting wars against Hamas, Hizbullah, Ansarullah (the Houthis), and Iran.
Abraham Accords signatories—the UAE, Bahrain and Morocco—received exports worth about $8.8 billion. While the percentage of Israeli defence exports to these three countries was nil in 2020, it rose to 7 percent in 2021 and jumped to 24 percent in 2022, before falling to 3 percent in 2023 after the Hamas 3 October attack and then rising again to 12 percent and 15 percent in 2024 and 2025, respectively, according to the IISS report.
Similarly, the value of Israeli defence exports to these countries rose to $0.79 billion in 2021 from zero in 2020, to $3.01 billion in 2022, descending to $0.33 billion in 2023 and thereafter rising again to $1.77 billion and $2.88 billion in 2024 and 2025, respectively, according to the IISS report.
Defence exports to the UAE, confirmed and alleged
The IISS report states that the UAE has been the recipient of most of Israel’s defence exports. For instance, in 2022, Israel’s Rafael Advanced Defence Systems sold medium-range SP-SAM (Spyder-MR) to the UAE. Similarly, in the same year, Elbit Systems, DSIT and Israel Aerospace Industries (IAI), all Israeli defence firms, exported to the Emirates airborne defence and EW systems (DIRCM), underwater sonar and medium-range SP-SAM systems (Barak LRAD). These purchases have been confirmed.
Other reports claim Israeli firm Skylock Systems of the Avnon Group also sold the Counter-UAV system (Skylock Dome) in 2022. Elbit Systems, Israel’s largest private defence manufacturer, also reportedly sold ISR heavy UAV (Hermes 900) and a SIGINT aircraft the same year.
Reports also suggest the UAE received airborne defence and EW (DIRCM) systems from Elbit in 2025. In November 2025, Elbit signed a $2.3 billion contract with an unnamed client for the joint development of an electronic defence system to protect civil and military aircraft, with Intelligence Online reporting the country to be the UAE.
Leaked emails from Elbit sent between 2021 and early 2023 exposed the company’s efforts to sell six Hermes 900 UAVs to the UAE, with intent to expand the sale to 45 UAVs valued at around US $1.3 billion.
A document also showed the UAE requesting two crewed and two uncrewed signals intelligence aircraft, and references to SkyStriker loitering munitions, unspecified kits and Hermes 650 UAV.
Growing Israel-UAE defence-industrial cooperation
The war in Iran and Iranian attacks on the UAE have particularly helped strengthen the bond between Israelis and the Emiratis, despite unease over the Gaza conflict. Adding to that, rising tensions between the UAE and Saudi Arabia and the recently signed Mecca Pact are birthing two new defence ecosystems—Israel, the UAE, and their close ally India on one hand, and Saudi Arabia, Turkey and Pakistan on the other.
As defence ties have grown, Israeli defence manufacturers Elbit, CONTROP, Rafael, Israel Aerospace Industries (IAI)’s subsidiary Belgian Advanced Technology Systems, and Avnon Group have all established offices in the UAE.
UAE’s EDGE group and Strategic Development Fund, later incorporated into EDGE itself, have boosted cooperation with Israeli counterparts, investing in at least eight Israeli firms, such as an investment of US $10 million in 2025 to buy a 30 percent stake in ThirdEye Systems and promising to invest an additional US $12 million into a new joint venture to develop and market ThirdEye’s AI-based electro-optical recognition products.
EDGE’s Electro-Optics Centre of Excellence has partnerships with IAI and Elbit, with another EDGE subsidiary, Phantom Labs, employing the software of High Lander, an Israeli firm, while receiving a US $14 million investment from EDGE in 2023. EDGE has also signed other agreements with Israeli firms IAI and XM Cyber to develop c-UAV systems and uncrewed surface vessels and to enhance cyber capabilities, respectively.
Other Emirati companies such as G42, Spire Solutions and Resource Industries have also developed ties with Israeli firms Rafael, XM Cyber and D-Fend, respectively.
Israel and the UAE’s blossoming relationship goes beyond defence exports and imports. The two countries reportedly also founded a fund in May 2026 with an aim to jointly buy and develop new weapons systems, focusing specifically on c-UAV and other air defence systems.
Israel has also reportedly deployed to the Emirates an Iron Dome battery, a version of the Iron Beam laser air-defence system, the Spectro drone-detection surveillance system and provided intelligence on Iranian missile launches targeting the UAE, with Israeli PM Benjamin Netanyahu’s office revealing his visit to the Emirates, whose foreign ministry has, however, denied it.
In 2020, G42 partnered with Rafael to form Presight AI, a joint venture to commercialise AI and big-data tech. Emirati firm Spire Solutions struck up a partnership with XM Cyber in 2021 for insights into the Middle Eastern market. The Technology Innovation Institute, UAE’s premier research institution, said it would open an AI and infrared-technology research centre in Haifa.
Supporting actors—Morocco and Bahrain
Morocco and Bahrain, also part of the accords, have gained less than the UAE in their relationship with Israel. Confirmed sales to Morocco consist of Short Range SAM (Barak MX) by IAI and WanderB UAV by BlueBird Aero Systems in 2022, ISR satellite (Ofeq-13) procured from IAI in 2024 and ATMOS 2000 self-propelled artillery in 2025.
Reported but unconfirmed transfers include Hermes 900 UAVs; Harop and SpyX one-way-attack UAVs; Skylock Dome c-UAV systems; Spike self-propelled anti-tank missiles; and UT30 MK2 unmanned turrets.
Bahrain has confirmed purchases of HUD display units from Elbit in 2020 and a coastal radar from BATS (IAI) in 2021. Excluding a production facility set up by BlueBird Aero Systems in Rabat, Morocco and Bahrain are yet to cultivate defence-industrial cooperation with Israel because of funding constraints and due to the lack of a less developed defence-industrial base than their Abraham Accords partner, the Emirates.
(Edited by Viny Mishra)
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