MENA arms companies' revenues reach record highs as global tensions rise

Arms sales revenues among the Middle East's largest defence companies reached a record $31 billion in 2024 as countries ramp up military spending in response to growing geopolitical tensions.

Data published by the Stockholm International Peace Research Institute (SIPRI) on Monday showed revenues rose 14 per cent last year among the nine MENA-based companies inside the top 100 contractors globally.

This is the highest number of Middle Eastern companies to have ranked inside the top 100 since the institute began recording the data in 2002.

Rising revenues in the region followed a global trend which saw companies in almost every area of the world report increased arms sales amid an unprecedented rise in military spending driven by the devastating wars in Ukraine and the Middle East.

Global revenues rose 5.9 per cent to $679 billion in 2024 - the highest level ever recorded by SIPRI.

Among the Middle East-based companies in the top 100, five were from Turkey, three from Israel and one from the United Arab Emirates (UAE).

The three Israeli companies saw their combined arms revenues increase 16 percent to $16.2 billion, despite global backlash against Israel's actions in Gaza.

Drone manufacturer Elbit Systems recorded $6.3 billion in revenues, up 14 percent on 2023. Israel Aerospace Industries' revenues rose 13 percent to $5.2 billion while Rafael recorded $4.7 billion, up 23 percent.

This was driven in part by higher orders by the Israeli defence ministry due to its genocidal war on Gaza and the Iranian missile attacks in April and October.

Exports also increased to NATO member states, which are embarking on a major rearmament drive in response to Russia's invasion of Ukraine.

"Despite the growing backlash and international tensions over what Israel is doing in Gaza, these numbers actually show us that Israeli companies not only remained resilient but expanded rapidly," Zubaida Karim, researcher with the SIPRI Military Expenditure and Arms Production Programme, told The New Arab.

"It's telling us that, when it comes to rebuilding their stockpiles, countries ignore the consequences of what is going on in Gaza," she said.

The five Turkish companies in the top 100 generated combined revenues of $10.1 billion, up 11 percent on 2023.

This was driven by higher demand at home and abroad, with companies benefitting from the Turkish government's strategy to increase local production and raise exports.

Aselsan - the country's largest defence company – saw revenues increase 24 percent to $3.5 billion, more than two-thirds of which came from exports.

The Emirati state-owned conglomerate Edge Group reported $4.7 billion in revenues. It was not included in the regional figure because of a lack of revenue data in 2023.