With Israel’s arms industry, the Tel Aviv Stock Exchange is soaring

On Wednesday, March 4, the defense company Elbit Systems became the highest-valued company listed on the Tel Aviv Stock Exchange following a further 5% surge in its share price. Its market capitalization now stands at $40 billion (€34.5 billion), overtaking pharmaceutical company Teva and the country’s major banks.

The company manufactures, among other products, surveillance drones and equipment for ground forces, aircraft and the navy. Over the past two years, Elbit Systems has experienced meteoric growth, fueled by the Israeli military’s successes on several fronts following the shock of October 7, 2023 – a fact that has also made it a regular target of pro-Palestinian groups in Europe. The company has also benefited from the pivotal role drones now play in conflicts in Ukraine and the Middle East.

Growth appears set to continue. The European market looks especially promising for the company, which is based in Haifa, a strategic northern port city. On Wednesday, Bloomberg reported that contracts were under negotiation with Germany for rocket launchers being developed with European partners.

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