The purpose of the article is to study the development of the Israel’s defence complex, determine thecost of its provision, analyse the ways to achieve high military efficiency and further prospects. The following scientific methods were used in the course of the study: historical method, rating method, analysis, synthesis, comparison method, graphical methods, method of establishing the cause-and-effect relationships. As a result of the study, it has been established the prerequisites, causes and course of the Arab-Israeli conflict, in which Israel has been developing over the past century. The place of Israel in the ranking of countries in terms of military strength was determined, and the detailed analysis of the country’s military expenditures as a percentage of its GDP was carried out. It has been compared the data obtained on the results of the countries’ region, which are actual or potential opponents of Israel, as well as individual countries of the world and the “Group of Twenty”. It has been investigated the trends of Israel’s military expenditures compared to its expenditures on the scientific-research and experimental-design works (SREDW).