Netanyahu: Israel's economy is very strong, still needs to build 'independent arms industry'

Tue, Sep 16, 2025, 3:29 PM 2 min read

He compared the situation Israel is in to ancient Greece by saying, “We are Athens and Sparta, or perhaps Super-Sparta. We have no choice.”

Prime Minister Benjamin Netanyahu said in a Tuesday press conference that if there was one lesson learned from the October 7 massacre, it was that Israel needs to create an “independent weapons industry” that can “withstand international constraints.”

Netanyahu said that his Monday comments on implementing an economy with autarkic characteristics were “misunderstood” by the media, adding that “the markets understood what I was saying.”

“The shekel is strong, stronger even than it was before the war began,” he said. “In the past year, our stock market has grown stronger than the US S&P.”

The prime minister said that though he does not underestimateinternational embargo attempts, in the realm of hi-tech and AI, no one does it better than Israel. Even in the defense industries, where Israel receives heavy political backlash, exports have skyrocketed throughout the war.

It was those achievements that bolstered Netanyahu’s resolve to make Israel economically independent and encourage foreign investors to invest in the country.

“We will create an independent arms industry, very powerful, very strong, that will withstand any international constraints and provide security for the State of Israel,” he said.

“The future belongs to those who innovate,” he concluded, “and Israel is the innovation nation.”

Netanyahu explained on Monday the need to protect industries critical for national security, saying, “I am an advocate of the free market, but in order to survive, we will have to ensure the ability to produce what is necessary for national security ourselves, especially weapons industries.”

He compared the situation Israel is in to ancient Greece, saying, “We are Athens and Sparta, or perhaps Super-Sparta. We have no choice.”

The prime minister also pointed to Israel’s current bureaucratic situation, explaining, “What worked until now will not work going forward… You have to cut down the bureaucracy.”

Netanyahu later told The Jerusalem Post that Qatar is spearheading an effort by a number of countries to impose a blockade on Israel.

“There is currently an attempt to impose a blockade on Israel by various entities and countries, led by Qatar,” the prime minister said. “This includes, first and foremost, a media blockade funded by vast sums of money from Qatar and other countries, such as China.”

“In the coming years, we will need to strengthen our independent arms industries to ensure self-reliance in weaponry, munitions production, and industrial capacity," Netanyahu said. “This will enable us to break through this blockade.”

Reuters contributed to this report.