Israeli defense-tech investment set to nearly triple to $1 billion in 2026 – The Jerusalem Post

Israeli defense-tech investment set to nearly triple to $1 billion in 2026  The Jerusalem Post

Investment in Israel's defense-tech sector is expected to nearly triple this year, reaching approximately $1 billion compared with $360 million in 2025, as rising global defense spending and demand for new military technologies draw investors to the industry.The forecast, presented by Eitan Mandel, head of the Defense Industries Division at the Manufacturers Association of Israel, reflects the growing role of startups in a sector long dominated by major defense contractors. Speaking at the “Defense Tech: The Next Frontline of Israeli Hi-Tech” conference held during Israeli Hi-Tech Week, Mandel said Israel's recent wars accelerated the development of military technologies and shortened the time it takes to move products from concept to operational use.“Israel is currently one of the world's most advanced and innovative defense-tech laboratories.

Over the past three years, we have accumulated extensive knowledge and experience, and the world is watching us,” he said. “This advantage has driven a surge in investment. Funding for Israeli defense tech jumped from approximately $360 million in 2025 to an expected $1 billion in 2026.”Before October 7, the development cycle in Israel averaged around two years, compared with eight to 10 years in the United States, from identifying an operational need to delivering a product. That process now takes weeks in some cases, he said.Mandel added that many Israeli defense technologies have been tested