Tel Aviv, December 18 (ANI/TPS): The German Bundestag has approved an expansion of the deal to purchase Israel’s Arrow 3 missile defense system, adding an estimated $3.1 billion to what is already the largest defense export agreement in Israel’s history, Israel’s Ministry of Defense announced on Wednesday.
The expansion builds on a $3.6 billion sale signed two years ago, bringing the total value of the Arrow 3 deal between Israel and Germany to more than $6.7 billion. According to the ministry, the agreement represents the highest-value defense deal ever concluded by the State of Israel.
Arrow 3 is an exo-atmospheric missile defense system designed to intercept long-range ballistic missiles. It was jointly developed by the Defense Ministry’s Missile Defense Agency, the U.S. Missile Defense Agency, and Israel Aerospace Industries, which serves as the prime contractor for development and production.
The system achieved its first operational success in November 2023, when it intercepted a ballistic missile fired by Iran-backed Houthi rebels in Yemen. It is widely believed to be the first instance of a missile being intercepted in outer space, although Israeli officials have not formally confirmed this.
Under the expanded agreement, the Israeli and German defense ministries have agreed to significantly increase the production rate of Arrow 3 interceptors and launchers. The formal signing of the expansion agreement is expected to take place on Thursday in Germany.
“The Bundestag’s approval of the expansion of the Arrow 3 deal is a clear expression of the deep trust that Germany places in the State of Israel, in its technological capabilities, and in our shared commitment to protecting our citizens in the face of increasingly severe threats,” Defense Minister Israel Katz said.
He described the agreement as “a strategic partnership of the highest order,” adding that revenues from the deal would support advanced development programs and help ensure Israel’s qualitative military advantage for years to come.
IAI CEO Boaz Levy said Germany’s approval of the follow-up deal was driven by proven performance and reliability. “The delivery of the Arrow 3 system within only two years from the date of signing reflected the mutual trust and advanced technological development capabilities,” Levy said, adding that the partnership would help provide Europe with some of the most advanced air defense capabilities in the world.
International demand for Israeli military technology has surged as European countries have increased their defense budgets in response to Russia’s war in Ukraine. Israel set a new all-time record for defense exports in 2024, with sales reaching $14.79 billion.
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