It showed that in 2014, Israel spent 5.2 percent of its gross domestic product (GDP) on defense, said Globes.

Additional big spenders included South Sudan with 9.3 percent, Saudi Arabia with 10.4 percent and Oman with 11.6%.

According to Globes, Israel spent $15.9 billion on its military overall in 2014.

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Number one on the list of defense spending was the United States, which spent 40 percent of the worldwide total with $610 billion.  Second place China spent close to a third of what the US did, at $216.4 billion.  Third place Russia spent $84.5 billion, said Globes.

Growth in the global aerospace and defense market increased in 2015 and is expected to increase further in 2016, said Tom Captain, Vice Chairman and US Aerospace & Defense Leader for Deloitte LLP, and Global A&D Leader for Deloitte Touche Tohmatsu Limited.

According to Captain, the market grew 1.5 percent in 2015 and is expected grow 3 percent in 2016.

Captain attributed this growth to the increasing threat of terror attacks around the globe, security tensions and instability in the Middle East, Globes said.

Spending is expected to be invested in modernizing technology, innovation in cyber warfare, intelligence, precision munitions and electronics.

Deloitte Israel strategy leader Eli Tidhar told Globes that this growth means good things for Israel, as other nations seek Israeli innovation  and technology.

“The Israeli defense industry has an advantage because it provides solutions to the changing needs of modern militaries to deal with security threats, which require the use of more precise measures and the integration of unmanned and robotic capabilities,” Tidhar said, adding that “digital and electronic warfare takes a more prominent role in the future battlefield.”

Tidhar highlighted the contributions made to defense strategies by both civilian companies and the military.

“The notion of a balance between military and civilian application is very developed in Israel, and we can expect that aspect of the Israeli defense industry to be advantageous in competing with global firms.”