IWI and AIA plan Dutch factory for Israeli assault rifles and machine guns

Israel Weapon Industries and Artillerie Inrichtingen Armaments announced on Monday that they will build a manufacturing and assembly plant in the Netherlands. The facility will produce two specific weapon systems: the Arad 5 assault rifle and the Negev UX machine gun. This joint venture represents a direct move to localize the production of these Israeli-designed arms within European borders.

The partnership divides responsibilities between the two companies. IWI will supply the core technology, product expertise, and manufacturing know-how. AIA will handle the physical construction of the Dutch manufacturing operation and the infrastructure needed to deliver and support the products. The companies stated that this arrangement aims to establish a foundation for long-term domestic production and lifecycle support in the Netherlands.

According to the press release, bringing manufacturing and assembly onshore will advance the country's defense industrial base. The initiative is designed to create a new model for collaboration between Dutch industry and an established international defense manufacturer. The statement emphasized that the project combines Israeli defense technology with Dutch industrial capacity.

This agreement comes amid strained diplomatic relations between the two nations. The Dutch government halted most arms exports to Israel last year. It now only allows parts for specific defense systems, such as the Iron Dome missile defense system. In October 2025, the Netherlands maintained its ban on exporting parts for F-35 fighter jets to Israel, even after a Supreme Court order gave it the option to change that policy.

Tensions have extended beyond military hardware. At the end of September, the Dutch government instituted a ban on products from Israeli settlements in the West Bank. Most of the international community considers these settlements illegal. In response, Foreign Minister Gideon Sa’ar revoked the accreditation of Dutch diplomats.

Public sentiment in the Netherlands has also shown friction. Tens of thousands of people protested in support of the Palestinians on Sunday. The Netherlands has additionally withdrawn from the 2027 Eurovision Song Contest. Public broadcaster NPO cited the sensitive issue of Israel’s participation as the reason for the withdrawal.

Despite these political headwinds, demand for Israeli weapons in Europe remains strong. Defense Ministry officials noted in June that they were still seeing high demand from European buyers. This continues even as some Western European governments cancel deals or sanction Israeli defense firms over the war in Gaza. The ministry reported that 2025 marked the fifth consecutive year that annual global Israeli arms sales reached a new record.

The Netherlands has not recognized the state of Palestine, unlike France and Belgium. However, the recent series of diplomatic moves and public protests indicates that the relationship is under pressure. The new weapons plant will operate within this complex environment, relying on Dutch industrial capacity to produce Israeli-designed equipment.