Photo Credit: Israeli Ministry of Defense Spokesperson's Office
Arrow 3 aerial defense system

The Israeli Ministry of Defense, German Federal Ministry of Defense, and Israel Aerospace Industries will sign the landmark $3.5 billion defense agreement, marking Israel’s largest ever defense deal.


Part of the proceeds will be used to bolster Israeli defense systems.

Defense Minister Yoav Gallant, the Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir and Director of the IMOD Directorate of Defense R&D (DDR&D), Brig. Gen. (Res.) Dr. Daniel Gold were notified today (Thursday) by the US Department of State that the US government has approved Israel’s request for Germany to procure the Arrow 3 missile defense system from Israel.

Biggest Sale in Israel’s History: Germans Approve 4 billion Euros to Purchase Arrow

The Arrow 3 Missile defense system is designed to intercept exo-atmospheric ballistic missiles. With its exceptional long-range interception capabilities, operating at high altitudes above the atmosphere, it stands as the top interceptor of its kind. The system employs a hit-to-kill approach for intercepting incoming threats.

The system was co-developed and co-produced by the Israel Missile Defense Organization (IMDO) and the United States Missile Defense Agency (MDA). The industrial team was led by Israel Aerospace Industries (IAI). Arrow 3 is the leading missile defense system of its kind for the interception of exo-atmospheric ballistic missiles.

After receiving approval from the US government, senior officials from the Israeli and German Ministries of Defense will participate in a ceremony to sign a Letter of Commitment (LOC), that marks the commencement of the agreement. The allocated commitment of $600 million will facilitate the immediate initiation of work on the project.

The full contract will be ready to sign by the end of 2023.

Israel Aerospace Industries (IAI) serves as the primary contractor, responsible for the development of the weapons system, Arrow interceptors, and radar detection system.

Elbit Systems developed the BMC command and control system. Additionally, Tomer, a government-owned Company, Rafael Advanced Defense Systems and Stark Aerospace, Inc, a US subsidiary of IAI, are the main subcontractors responsible for the development and manufacturing of the Arrow 3 interceptor.

“The US government’s approval of the delivery of the ‘Arrow 3′ missile defense system [to Germany] is an expression of confidence in the excellent capabilities of Israel’s defense industries,” Defense Minister Yoav Gallant said in a statement.

“This is a significant decision, which will contribute to Israel’s force buildup and economy. It is also particularly meaningful to every Jewish person, that Germany is acquiring Israeli defense capabilities.

“We are proud of this defense agreement – the largest in Israel’s history. This is an opportunity to express gratitude and appreciation to our industries – the engineers at ‘Israel Aerospace Industries’ who have broken new records as a result of their creativity and talent. ‘Arrow – 3’ is a groundbreaking system, the most advanced of its kind in the world, as well as a force multiplier in Israel’s air defense – soon in Europe as well.

“Our cooperation with the US government is essential to the system’s development process and to the achievement of this significant agreement. This reflects once again the powerful defense ties between the US and Israel. I would like to express my appreciation to my friend, Secretary of Defense Lloyd Austin, for the United States’ central role in this process.”

“This historic agreement holds far-reaching implications for decades to come,” added Director General of the Israel Ministry of Defense, Brig. Gen. (res.) Eyal Zamir.

“This landmark deal, the largest defense export agreement in our country’s history, will propel Israeli defense exports to a new record, following last year’s remarkable achievement of 12.5 billion dollars.

“The Arrow 3 agreement reinforces our unwavering alliance with the US, encompassing strategic, political-defense, and industrial cooperation. Notably, system components currently manufactured in the UA for Israel will also be produced for Germany, further strengthening our partnerships with the US industrial base.”

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Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for, and other media outlets, in addition to her years working in broadcast journalism.