Israel, Germany finalize Arrow 3 missile defense deal sale

Defense Ministry Director-General Maj.-Gen. (res.) Eyal Zamir on Thursday signed the agreement for Germany’s acquisition of the Arrow-3 missile defense system, valued at approximately $3.6 billion.

This was the final milestone in a process dating back years with a variety of delays from Israel, Germany, and the US – the latter of which had to approve the deal as a co-partner with Jerusalem in producing the system.

By September, the deal seemed to be close to final when Defense Minister Yoav Gallant flew to Germany to sign a variety of critical documents, which moved the process forward.

Germany, Israel finalize Arrow 3 sale in Tel Aviv

Last week’s signing event at the Defense Ministry in Tel Aviv was attended by senior officials, including German Ambassador to Israel Steffen Seibert; German military attaché Capt. Volker Gelhausen; Israel Aerospace Industries CEO Boaz Levy; IMOD director Brig.-Gen. (res.) Dr. Daniel Gold; Israel Missile Defense Organization director Moshe Patel, and other senior officials.

“The Arrow-3 missile defense system constitutes the forefront of global technology, designed to intercept exo-atmospheric ballistic missiles, the ministry said. “ The Arrow-3 system also carried out its first operational interception during the Swords of Iron war, successfully destroying a target launched towards Israel in the Red Sea region.”

The statement was referring to multiple uses of the Arrow to shoot down ballistic missiles fired by the Houthis of Yemen against Israel under orders by Iran as part of the current war against Hamas.

A statement said that, following the signing, billions of shekels will be allocated to facilitate the initiation of production at IAI and associated defense industries.

According to the deal, the first Arrow-3 battery will be delivered to the German Ministry of Defense by the end of 2025.

Alongside the main effort to support the IDF’s strength and force build-up processes, the Defense Ministry stated that it remains “committed to bolstering strategic cooperation with partners around the world” – in other words, to selling the defense technology more broadly.

The Arrow-3 system is co-developed and co-produced by the IMDO within the ministry and the United States Missile Defense Agency (MDA).

While IAI is the primary contractor for the weapon system’s development and production, the Arrow interceptors and radar detection system, Elbit Systems is responsible for the development of the command and control system, and Tomer and Rafael Advanced Systems are the main subcontractors for the development and production of the Arrow-3 interceptor.