Israel's defense minister signs historic Arrow 3 deal with Germany

In an historic ceremony on Thursday, a deal for the sale of Israel’s Arrow-3 long-range anti-ballistic missile system to Berlin was signed by German Defense Minister Boris Pistorius and Israeli Defense Minister Yoav Gallant.

A joint statement was signed at the ceremony committing a $600 million down payment to start the project. Initial deliveries are expected in 2025 and full operation by 2030. Another signing is set for November for the full contract.

Defense Ministry Director-General Eyal Zamir said the deal was the largest and most significant in Israel’s history. Gallant said that the $3.5 billion sale of the system is the biggest agreement to date between the two states, and showed the degree of their security partnership.

“Since the establishment of our ties, Germany has contributed greatly to Israel’s security. Today we are proud to do the same for Germany, a strategic ally and European leader,” said Gallant. “Only 80 years since the end of the Second World War, yet Israel and Germany join hands today in building a safer future for both nations.”

German Ambassador to Israel Steffen Seibert echoed Gallant’s remarks, invoking his country’s commitment to Israel’s security due to the country’s historical responsibility for the Holocaust, but pointing out that “with the Arrow-3 system, it is now Israel that provides Germany with advanced strategic air defense capabilities and thus makes a major contribution to our security.”

Reuters reported that the deal was financed by a 100 billion euro defense fund established by the German government last year in response to the Russian invasion of Ukraine.

The need for the system and partnership with Germany and potentially other states was underscored by common threats, Gallant said, pointing to the Iranian missile threat manifesting with Hezbollah in Lebanon and attacks on Gulf states.

“The Iranian UAVs used to kill innocent civilians around the world serve as a preview for what the world will see if the missile embargo will expire next month,” Gallant said, referencing the 2015 Iran deal sunset clause. “In the face of Iranian aggression, we must prioritize security readiness and capabilities, as well as bold actions by the international community.”

The Joint Comprehensive Plan of Action (JCPOA) placed sanctions on Iran’s nuclear weapon and ballistic missile programs. Senior Foundation for Defense of Democracies adviser Richard Goldberg said ahead of the expiration that “Intentionally allowing the UN missile embargo to expire in the hopes Iran will show self restraint in its quest for nuclear weapons is nothing more than foreign policy malpractice. It would take a few minutes to write a letter to the Security Council and trigger the snapback. Choosing not to is a choice we will all live to regret.”

In the shadow of the sunset clause and with the success of the Arrow-3 sale, Gallant announced that “the State of Israel is prepared to expand our defense and industrial cooperation with additional global partners.”

Zamir said that the missile system would save many lives through deterrence and its interception capabilities. Israel Aerospace Industries CEO Boaz Levy welcomed the deal in a statement, explaining that Arrow-3 made it possible to intercept ballistic missiles outside the atmosphere, and is part of Israel’s multi-layered defense system, complemented by the Iron Dome and David’s Sling.

Gallant said that Israeli defense systems are so advanced, because they have been protecting Israel since the state’s establishment, and the Jewish state has had to maintain a qualitative technological advantage to survive. Zamir said that the system sale would drive higher defense exports and create hundreds of new jobs.

The system was developed by the Israel Missile Defense Organization and Israel Aerospace Industries, and is one of the most advanced systems of its kind, said Gallant. IAI worked on the weapon system, interceptors, and radar detection. Elbit systems developed the command and control system, and Rafael and Tomer worked as subcontractors on interceptor development and production.

Due to the joint development with the US, Washington’s cooperation was required. The US announced that it had approved the sale of the system on August 17.