IAI’s Arrow system has notched a major win in Germany. (IAI)
JERUSALEM — Israel’s Ministry of Defense has finalized an agreement to sell the Arrow 3 air defense system to Germany and is sticking to a scheduled 2025 delivery.
The finalization, announced Nov. 23, follows the United State’s approval of the estimated $3.6 billion deal in August and a signing ceremony in September.
“This milestone, marked by the final signing conducted by German and Israeli officials, concludes the acquisition process that commenced with Defense Minister Yoav Gallant’s visit to Germany in September 2023,” the Israeli Ministry of Defense said.
In Israel, Arrow 3 is the highest layer of the nation’s multi-tiered air defense array — above the Iron Dome and David’s Sling systems — and is designed to confront exo-atmospheric threats, such as ballistic missiles. Arrow and David’s Sling were jointly developed with the US Missile Defense Agency and Israel’s Missile Defense Organization.
The Arrow 3 netted its first ever operational interception amid the conflict in Gaza earlier this month, knocking out what the Israeli Defense Forces said was a “target launched towards Israel in the Red Sea region.” That suggests it had been fired from the direction of Iran-back Houthis in Yemen.
Arrow’s lead contractor is Israel Aerospace Industries. IAI’s Elta subsidiary also makes the radar for the system, while Israel’s Elbit Systems makes the command and control system. Meanwhile, Tomer and Rafael Advanced Systems are the main subcontractors for the interceptor missile, the MoD said.
German Ambassador to Israel Steffen Seibert attended the signing along with senior Israeli officials, including Boaz Levy, CEO of IAI, as well the Director of the Israel Ministry of Defense’s Directorate of Defense R and D Brig. Gen. (Res.) Daniel Gold and head of the Israel Missile Defense Organization Moshe Patel.
Germany had agreed to set aside funding early for the system in June, which would enable IAI to bring production for a relatively quick delivery date of the end of 2025. Despite the war in Gaza, the timing of the final agreement has continued on the same schedule reported in June. The Ministry noted that it is committed to bolstering strategic cooperation with partners around the world, even as it continued to build up IDF forces for the continued conflict in Gaza.
There is currently a tenuous ceasefire in Gaza, but prior to that Israeli air defenses had to contend with unprecedented threats since Hamas’s attack on October 7, including a high volume of fire of 3,000 rockets in the first day, and more than 9,000 rockets fired in the first month of war. Around 2,000 interceptions have been carried out by the three elements of the multi-tiered air defense system, according to the IDF. US warships in the Red Sea have also intercepted threats from Yemen.
Increasing threats to Europe in the wake of Russia’s invasion of Ukraine have led to skyrocketing interest there in advanced weapons systems, including air defenses. Finland acquired the David’s Sling system and the US signed off on that deal in August 2023.
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