The ongoing conflicts in Gaza and Ukraine have brought a significant financial boost to arms manufacturing companies, particularly in the US and Israel. According to the latest report by the Stockholm International Peace Research Institute (SIPRI), the world’s top 100 arms companies have seen a surge in profits, largely due to the war-driven demand for weapons and military equipment.
In SIPRI’s 2023 analysis, the data reveals that the revenue of arms companies operating in active war zones has grown exponentially. Russian arms manufacturers have experienced a 40 percent increase in profits, driven by the heightened demand for fighter jets, tanks, missiles, and ammunition in the ongoing Russia-Ukraine conflict. Similarly, Israeli arms companies, benefiting from the Gaza war, have seen their collective revenue skyrocket to US$19.6 billion (roughly Rs 1.66 lakh crore), reflecting an 18 percent rise in their profits.
World’s top arms producers see revenues rise on the back of wars and regional tensions. The arms revenues of the SIPRI Top 100 companies totalled $632 billion in 2023, +4.2% from 2022.
New #SIPRI data on the #ArmsIndustry is available now: https://t.co/vihumTQooI#SIPRI… pic.twitter.com/rC5LdmE0dt
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The United States continues to dominate the global arms market, with 41 American companies making up a substantial portion of SIPRI’s top 100 list. In 2023, US arms manufacturers generated a combined revenue of US$317 billion, a 2.5 percent increase from the previous year. Notably, while companies like Lockheed Martin and Raytheon Technologies (RTX) faced a slight dip, the majority of US arms companies reported gains. This growth is primarily attributed to the high demand for weapons from Ukraine, as well as other international buyers in the Middle East and Asia.
Israeli arms companies, which have historically benefited from their close involvement in Middle Eastern conflicts, are seeing significant windfalls as well. SIPRI’s report indicates that six Israeli arms companies have collectively boosted their revenues, capitalizing on the escalation of violence in Gaza.
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