Israel, Germany sign off on Arrow 3 air defense agreement

JERSUALEM — Israel Minister of Defense Yoav Gallant today signed a historic agreement in Germany to supply Berlin with the Arrow 3 air defense system, an agreement $3.5 billion.

“We are committed to a timely and effective delivery. This agreement is tangible evidence that Israel and Germany are true partners,” Gallant said during the signing of what he called Israel’s largest-ever defense export.

The signing in Germany of an official letter of commitment was hosted by German Minister of Defense Boris Pistorius at his ministry. It took place with Director General of the Israel Ministry of Defense Eyal Zamir, and the Director-General of the Federal Office of Bundeswehr Equipment, Annette Lehnigk-Emden.

“The letter discusses a commitment that amounts to $600 million, and will enable the parties to begin working on the project immediately,” a statement from the Israeli MoD noted.

Germany agreed to advance funding back in June so that Israel could meet an accelerated delivery date. The Ministry of Defense and Israel Aerospace Industries have previously announced initial operational capability for the system will be ready by 2025.

The decision to procure Arrow comes in the context of the Ukraine war and increase defense procurement across the content. European nations have begun prioritizing air defense systems that can defend against both missiles, drones and other emerging threats

“Just as it [Arrow-3] guards Israel’s skies and saves lives, now it will also defend Germany and its citizens, and may integrate smoothly with NATO systems,” Gallant said. “Today the State of Israel is prepared to expand our defense and industrial cooperation, with additional global partners.”

The Arrow 3 was designed as the top-tier of Israel’s multi-layered air defense system, developed to confront exo-atmospheric threats. Israel’s David’s Sling and Iron Dome form the medium and shorter-range tiers of the defense system. David’s Sling, produced by Rafael Advanced Defense Systems, and Arrow, produced by IAI, are both joint projects with the United States. The US approved the Arrow sale in August, while David’s Sling has also been sold to Finland, illustrating the growing demand for Israeli air defense technology.

Although the Arrow deal is an eye-catching one, Israel and Germany have close defense ties on other levels. Israel acquired its recent Sa’ar 6 corvettes from Germany, and Germany has acquired Rafael’s Spike missiles and other systems from Israel, such as the Trophy active protection system also made by Rafael.

“Our countries have reached a level where we share intimate, sensitive intelligence, military knowledge, and capabilities. 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, who also acknowledged the tragic history of the Holocaust that hangs over any announcement between Jerusalem and Berlin.

“This is a moving event, for every Jew. We rose from the tragedy of the holocaust, and built a free, strong, and democratic state. 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,” Gallant said.

The Israeli Defense Minister also mentioned the importance of this deal for the Israeli Missile Defense Organization and the US Missile Defense Agency, as well as IAI. He said Arrow “will also defend Germany and its citizens, and may integrate smoothly, with NATO systems.”

Notably, Gallant used the signing to warn that, “The Iranian fingerprint is everywhere – from the hundred thousand missiles provided by Iran to Hezbollah in Lebanon, to the weapons used  for terror attacks against Israelis, and the missile attacks on our Gulf neighbors.”

In the last year Iran’s supply of kamikaze drones to Russia has been spotlights by European concerns and US sanctions. “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. Iran will have a free pass to spread advanced missiles around the world,” said Gallant.

IAI’s CEO Boaz Levy praised the agreement. He said the Arrow system was the “first in the world to enable the interception of ballistic missiles outside to the atmosphere.” He noted also its use for defense against strategic threats and other capabilities.