Israel and Germany Ink Historic $14 Billion Defense Deal for Arrow 3 Anti-Missile System

Israel and Germany have finalized a historic defense deal worth approximately 14 billion shekels, marking the largest such transaction in Israel's history. The Director General of the Ministry of Defense, Major General (ret.) Eyal Zamir, formally signed the agreement on Thursday for the sale of the cutting-edge Arrow 3 anti-missile defense system to Germany.

The momentous deal was solidified in the presence of the German Ministry of Defense counterpart, with the Aerospace Industry spearheaded by Amir Peretz and managed by Boaz Levy serving as the system supplier.

This development marks the inaugural export of the Arrow system to a foreign nation. The system garnered international attention a few weeks ago when it demonstrated its operational prowess by intercepting ballistic missiles launched at Israel by the Houthis in Yemen. Notably, the majority of interceptions were executed using Arrow 2 missiles, which have been in operational use in Israel's air defense system for approximately 25 years. The Arrow 3 interceptor, operational since 2017, showcased its capability by intercepting one of the missiles in space.

As per the terms of the agreement with Germany, the first Arrow 3 battery is slated for delivery towards the end of 2025. The decision to equip Germany with these Israeli defense missiles comes in the wake of the conflict between Russia and Ukraine. Germany, recognizing the need to fortify its defense capabilities, is preparing to safeguard its territory and other European nations in the event of future escalations.

This monumental defense deal not only underscores the strength of the diplomatic ties between Israel and Germany but also positions Israel as a key player in the global defense market, showcasing the technological prowess of its defense systems on the international stage.