Israel to spend $110 billion on arms over next decade

Israel plans to invest 350 billion shekels ($110 billion) over the next decade to make its domestic arms industry more independent, Prime Minister Benjamin Netanyahu announced on Wednesday, according to Israeli media reports.

Speaking at a graduation ceremony for newly trained air force pilots, Netanyahu said the programme was aimed at reducing Israel's reliance on foreign suppliers, "including friends," the Times of Israel reported.

Netanyahu referred in his remarks to Germany, which he said — like other countries — was seeking to buy "more and more" weapons systems from Israel. Germany temporarily halted some arms exports to Israel following the devastating war in Gaza, which has left thousands of civilians dead, a move that strained relations with Jerusalem.

Other European countries and the United States, Israel's closest ally, also imposed various restrictions, drawing criticism from Netanyahu. The prime minister said the new defence investment programme was intended to ensure Israel's strategic autonomy in arms production.

Last week, Germany and Israel signed a contract to expand the Arrow 3 missile defence system supplied to the German armed forces, designed to protect against potential Russian missile attacks.

Israeli officials have said the overall value of the deal — including the base system — amounts to about €5.7 billion ($6.7 billion), making it the largest arms deal in Israel's history.

Germany has supplied Israel with major weapons systems for decades.