The United States (US) government granted approval to Israel’s request to export the jointly developed Arrow 3 missile defense system to Germany.
The deal marks Israel’s largest defense transaction ever.
Israel’s Defense Ministry highlighted that Defense Minister Yoav Gallant and other high-ranking officials were notified of the US government’s consent for the sale.
The Arrow 3 system, a collaborative effort between the Israel Missile Defense Organization and the US Missile Defense Agency, with manufacturing carried out by Israel Aerospace Industries, represents Israel’s most advanced long-range missile defense technology.
Its purpose is to intercept ballistic missiles before they enter Earth’s atmosphere, effectively neutralizing warheads including nuclear, biological, chemical, or conventional payloads. The system can operate at distances of up to 2,400 kilometers (about 1,490 miles).
In the coming weeks, senior representatives from Israel and Germany’s defense sectors are set to sign a letter of commitment. This agreement will facilitate an initial payment of approximately $600 million from Germany to Israel, which will be utilized to establish manufacturing and production infrastructure.
Subsequently, the full contract valued at $3.5 billion (previously reported as $4.3 billion) is expected to be finalized by the end of 2023.
The completion of this contract hinges on the approval of both countries legislatures. Germany anticipates the delivery of the Arrow 3 system during the final quarter of 2025.
Gallant said the US approval was “an expression of confidence in the excellent capabilities of Israel’s defense industries.”
“This is a significant decision, which will contribute to Israel’s force buildup and economy. It is also particularly meaningful to every Jewish person that Germany is acquiring Israeli defense capabilities,” Gallant added.
“Arrow 3 is a groundbreaking system, the most advanced of its kind in the world, as well as a force multiplier in Israel’s air defense, soon in Europe as well.”
