Israel's defense industries signed contracts totaling $5.6 billion in 2007, an all-time high for Israel's defense exports according to Defense News, the world's leading military and government news periodical publisher. Last year's sales were $700 million greater than in 2006, the previous record, according to the Ministry of Defense SIBAT – Foreign Defense Assistance and Defense Export Organization.

SIBAT noted that for the first time, the United States is Israel's largest arms customer, signing contracts worth $1.5 billion in 2007.  Israel's leading defense exporter to the US last year was Plasan Sasa, a manufacturer of armor add-on kits for vehicles, which sold $800 million in products to the US. Elbit Systems is in second place with $700 million in US sales, primarily through its Fort Worth, Texas subsidiary.

India is Israel's second largest defense customer, with $800 million worth of new procurement contracts in 2007.