Despite tensions, Israeli, Dutch firms to establish weapons plant in Netherlands

Despite fraught diplomatic ties, an Israeli weapons company and a Dutch defense firm are planning to establish a manufacturing and assembly plant for Israeli arms in the Netherlands.

In a press release on Monday, Israel Weapon Industries (IWI) and Artillerie Inrichtingen Armaments (AIA) said they will set up a facility in the Netherlands where IWI weapons will be manufactured, “combining Israeli defense technology and expertise with Dutch industrial capacity.”

Under the planned joint endeavor, AIA will manufacture and assemble two IWI weapon systems, the Arad 5 assault rifle and Negev UX machine gun.

“IWI will provide the underlying technology, product expertise, and manufacturing know-how, while AIA will establish the Dutch manufacturing operation and the infrastructure to deliver and support the products,” the statement said.

The companies said the cooperation will “establish a foundation for long-term domestic production, technical expertise, and lifecycle support in the Netherlands.”

“By bringing manufacturing and assembly onshore, the initiative will advance the country’s defense industrial base and create a new model for collaboration between Dutch industry and an established international defense manufacturer,” the statement added.

Despite some governments, especially in Western Europe, canceling weapons deals with Israel or sanctioning Israeli defense firms — including barring them from defense expos — over the war in Gaza, Defense Ministry officials said in June they were still seeing a high demand for Israeli weapons from Europe. 2025 was the fifth consecutive year that annual global Israeli arms sales reached a new record, the Defense Ministry said.

Unlike other European countries such as France and Belgium, the Netherlands has not recognized the state of Palestine. But there have been tensions between Israel and the Netherlands in recent years, including over weapons.

The Dutch government said last year that it halted most arms exports to Israel and only allows parts for defense systems such as the Iron Dome missile defense system.

In October 2025, the Netherlands said it would maintain its ban on exporting parts for F-35 fighter jets to Israel despite a Supreme Court order giving it the option to change its policy.

At the end of September, the Dutch government instituted a ban on products from Israeli settlements in the West Bank, which most of the international community considers illegal. Foreign Minister Gideon Sa’ar revoked the accreditation of Dutch diplomats in response.

On Sunday, tens of thousands of people protested in the Netherlands in support of the Palestinians.

The Netherlands has also withdrawn from the 2027 Eurovision Song Contest, with public broadcaster NPO citing the “sensitive” issue of Israel’s participation.

AFP contributed to this report.