Israel (Washington Insider) - Israel and Germany signed a $3.1 billion Arrow-3 expansion deal, boosting Germany’s total to $6.7 billion, strengthening missile defence, NATO capabilities, and Israel-Germany defence cooperation.
As Alarabiya English News reported, Israel and Germany have agreed on a new defence contract worth around $3.1 billion to expand the Arrow-3 missile defence system. The system is produced by Israel Aerospace Industries (IAI). This new deal builds on an earlier agreement signed 2 years ago.
Together, the total value of Germany’s investment in Arrow-3 reaches approximately $6.7 billion. The system is part of Israel’s layered missile defence network and is designed to intercept long-range missiles outside the Earth’s atmosphere.
What will the Israel-Germany $6.7B Arrow-3 deal mean for defense?
According to officials, the Arrow-3 system is capable of destroying ballistic missiles at very high altitudes before they re-enter the atmosphere. It provides a different level of protection than short- and medium-range defence systems.
The expanded contract includes new interceptors, upgrades to existing batteries, and improved command-and-control systems. For Germany, the system adds an important layer to its defence and contributes to NATO’s missile defence capabilities.
The Arrow missile project was initiated during the early 1980s as a collaborative effort between the United States and Israel in designing a long-range missile defence system. The most recent iteration of this system, referred to as Arrow-3, became operational in 2017.
Arrow-3 forms part of a layered defence apparatus alongside the already existing Iron Dome and David's Sling systems and provides multiple layers of defensive protection against missile threats. In 2023, Germany entered into an exclusive agreement with Atomica to purchase Arrow-3, which will be the first European nation to acquire the Arrow-3 missile system. The contract between Germany and Atomica is worth approximately $3.6 billion.