German Military Exports to Israel Surge to Nearly $1 Billion

Germany approved military exports to Israel totaling nearly 800 million euros (approximately $930 million) in the first half of 2024, a significant increase compared to previous years. This figure represents a substantial jump, with the total for the first half of 2024 already four times higher than the entirety of 2025's 260 million euros.

A portion of this increase is attributed to the lifting of a partial embargo by Chancellor Friedrich Merz in November. The majority of the approvals, 735.8 million euros, occurred in the second quarter. Of this, 67% was designated for a "maritime project" and 21% for joint German-Israeli projects serving the German military.

The "maritime project" is strongly suggested to be Israel's most expensive submarine purchase to date, the INS Drakon. The INS Drakon, the sixth submarine for Israel and the largest built in Germany since World War II, was recently celebrated at a launch ceremony in Germany. Its cost is estimated at around 550 million euros, and Israel relies heavily on Germany and Thyssenkrupp Marine Systems for its submarine program.

In contrast to submarine imports, Israel is diversifying its naval capabilities. In December 2024, the Israeli Ministry of Defense signed its first contract in over two decades with Israel Shipyards for five advanced Sa'ar-class missile boats, valued at approximately $840 million. These vessels will replace the Nirit-class ships after 40 years of service.

The INS Drakon is equipped with an Air-Independent Propulsion (AIP) system, allowing for extended submerged operations. It is over 70 meters long and weighs more than 2,000 tons, making it the largest and most powerful submarine in the Middle East. Future acquisitions include three additional Dakar-class submarines from Germany, expected to arrive from 2031 onwards, with the German government funding about 20% of the estimated 3 billion euro contract.