Traditionally Israel spends a significant amount of funds on defence. According to the Stockholm International Peace Research Institute (SIPRI), Israel spends almost on average 6.3% of its Gross Domestic Product (GDP) on defence for the period 2006-2015. This trend was reaffirmed as the revised defence budget for 2016 reached 76.31 billion Israeli Shekel –ILS- (approximately 16.6 billion US dollars). This actually highlights the determination of the Israeli government to support a defence budget which will ensure that the armed forces will be able to deliver their core capabilities.
Regarding Israel’s defence imports, the US has a leading role. Apart from the North American country, other countries that exported arms to Israel, during the period 2006-2016 were Germany, Italy and Canada. The US made equipment accounted for the lion’s share in Israeli defence imports, as they represented some 78% of total imports over the period 2006-2016.
One of the most sophisticated defence systems the Israeli Armed Forces operate, is the "Iron Dome”™, a system designed to protect from the threat of projectile weapons, by intercepting items such as short-distance rockets. Rafael Advanced Defense Systems is responsible for the development of the Iron Dome. The system is an advanced defense system, designed for quick detection, discrimination and interception of rockets & mortar threats with ranges of up to and over 70 km and against aircraft, helicopters, UAVs and PGMs. The system is effective in all weather conditions, including low clouds, rain, dust storms or fog.
On the other hand, the Israeli Air Force (IAF) operates among others the F-16I nicknamed "Sufa" (Storm) manufactured by Lockheed Martin and equipped with Pratt & Whitney F100-PW-229 Increased Performance Engines (IPE), as well as advanced avionics and weapon systems developed in Israel, according to the Israeli Air Force’s particular specifications.
Additionally, the Israeli Air Force operates Eurocopter AS-565 Panther helicopters, nicknamed Atalef, a multirole naval helicopter that entered service in 1996. The Atalef carry out a range of operations, including rescue, reconnaissance and attack. These helicopters replaced the IAF's previous naval helicopter, the Dolphin.
The Merkava Mark IV tank operated by the Israeli Armed Forces, carries several Israeli made systems, including the Fire Control System, Turret and Gun Drive System, Battle Management System (BMS) and Crew Protection systems, developed by Elbit Systems.
Further, in May of 2015, the Israeli Defense Minister Moshe Ya’alon and the German Defense Minister Ursula von der Leyen agreed for Israel to purchase four warships from Germany to protect its offshore natural-gas drilling platforms, in a €430 million ($480 million) deal. Israeli defence capabilities will be upgraded with this purchase and as Defence Ministry Director General Maj. Gen. (Res.) Dan Harel stated, this procurement will provide “a dramatic leap upward in the navy’s ability to protect the State of Israel’s strategic natural gas sites”. According to the Israeli Industrial Cooperation Authority (ICA), ThyssenKrupp (the supplier of the warships) would purchase Israeli-made goods, invest in research and development and look into investing approximately NIS 700 million ($180 million) in Israeli companies.
Undoubtedly the most important procurement of Israel in the last few years is that of the F-35 aircraft. Israel is expected to acquire through the US government’s Foreign Military Sales (FMS) program 50 F-35 Conventional Take Off and Landing (or CTOL) aircraft. In June 2016, the first Israeli Air Force F-35A Lightning II rolled out of the hangar, marking a major production milestone for the upgrade of the future Israeli aircraft capabilities.