Middle East Defense Industry: Nine Firms in SIPRI's Top 100 List

Middle East Defense Industry Reaches New Heights in Global Rankings

The Middle East’s defense industrial sector has achieved a significant milestone, with nine regional firms now appearing on the Stockholm International Peace Research Institute’s prestigious Top 100 arms producers and military service providers list—the highest number ever recorded from the region.

According to SIPRI’s latest annual report, released Monday, these nine companies generated approximately $31 billion in combined arms revenue during 2024, signaling the region’s growing prominence in global defense manufacturing and export markets.

The regional representation breaks down as follows: Turkey leads with five firms, Israel contributes three companies, and the United Arab Emirates enters the list with one major player. This distribution reflects the varying maturity levels and export capabilities across the region’s defense sectors.

Israel Dominates Regional Rankings

Israel’s defense firms command the region’s highest positions globally. Elbit Systems ranks 25th worldwide with $6.3 billion in 2024 arms sales, up significantly from $5.5 billion in 2023. The company’s growth trajectory reflects robust demand for Israeli military technologies, particularly in unmanned aerial systems and counter-UAV capabilities.

Israel Aerospace Industries (31st) and Rafael (34th) complete the Israeli trio, which collectively achieved $16.2 billion in arms revenue—a remarkable 16 percent increase year-over-year. SIPRI attributes this growth to both Israel’s ongoing military operations in Gaza and elevated global demand for advanced Israeli defense systems.

Turkey’s Expanding Presence

While Turkey has appeared on previous SIPRI lists, 2024 marks the first year five Turkish defense firms qualified simultaneously for the Top 100. Turkish companies generated $10.1 billion in combined arms revenue, representing 11 percent growth from 2023.

Aselsan leads Turkish representation at 47th globally, with dramatic 24 percent revenue growth reaching $3.5 billion—primarily driven by a 65 percent surge in exports. Baykar, the unmanned aircraft manufacturer, generated $1.9 billion in arms revenue, with approximately 95 percent derived from exports. However, Baykar’s revenue declined 12 percent from 2023 as Ukraine’s extraordinary demand for the Bayraktar TB-2 UAV moderated following the intense early phases of Russia’s 2022 invasion.

Turkish Aerospace Industries (65th) and Roketsan missile producer (87th) round out Turkey’s representation on the global list.

UAE’s Significant Entry

The UAE’s state-owned EDGE Group achieved 37th ranking with $4.7 billion in 2024 arms sales. Notably, SIPRI previously excluded EDGE from Top 100 considerations due to insufficient publicly available data, making its formal inclusion a watershed moment for the Emirati defense sector.

EDGE’s debut coincides with its record-setting activities, including major unveilings at the recent Dubai Airshow and a $7 billion defense export agreement with Indonesia—the largest in the conglomerate’s history.

Global Context and Implications

The Middle East’s defense sector growth reflects broader global trends. SIPRI identified conflict-driven demand—particularly from Gaza and Ukraine—as primary revenue drivers for regional companies. The surge extends globally, with all 77 firms in the Top 100 collectively increasing revenues as defense markets expand.

Regional firms are now positioning themselves as significant players in high-demand technology sectors, particularly unmanned systems and advanced air defense capabilities. The concentration of growth in Turkey, Israel, and the UAE suggests these nations are successfully leveraging geopolitical conditions, existing technical expertise, and manufacturing capabilities to capture expanding international market opportunities.

As global defense spending remains elevated amid ongoing conflicts and regional tensions, Middle Eastern defense firms are poised for continued growth and market influence.

Source ID: SRCE-2025-1764687886503-1066