Forty years ago, arms production in the Middle East was limited to a few small factories producing rifles and ammunition. Today, arms production has become a very big business in the region, with annual output worth more than $4 billion and rising. Of the 23 Third World countries with extensive military production, five are in the Middle East. One Middle Eastern state, Israel, is the largest Third World arms exporter and has one of the largest arms industries in the world. Egypt and Turkey are the other two major arms producers in the region, followed by Iran and Pakistan. Munitions and small arms producers include Algeria, Ethiopia, Iraq, Jordan, Morocco, Saudi Arabia, Syria, Sudan and Tunisia.