The Israeli Ministry of Defense announced on Thursday that the United States has approved the sale of the Arrow-3 missile defense system to Germany in a deal worth $3.5 billion, which will be Israel's largest defense deal. The statement noted that Israel and Germany will sign a letter of commitment with an initial payment of $600 million to begin work on the project, indicating that the full contract will be ready for signing by the end of 2023.
The United States is a partner in the Arrow project, which has been jointly developed by the Israeli Missile Defense Organization and the U.S. Missile Defense Agency. The Russian war in Ukraine has highlighted the shortage of ground-based air defense systems, such as Patriot units produced by Raytheon or the recently developed IRIS-T system, in many Western countries.
The Patriot and IRIS-T systems provide mid-tier air defense, while Arrow-3, produced by Israeli Aerospace Industries and Boeing, offers protection against higher-altitude threats. Arrow-3 is equipped with a warhead that can separate upon impact with the target, designed to intercept ballistic missiles outside the Earth's atmosphere, a height that allows for the safe disposal of any unconventional warheads.
Germany stated that it expects to receive a shipment of Arrow-3 for its air forces by the fourth quarter of 2025. Israeli Army radio reported that a signing ceremony with Germany regarding the Arrow-3 deal is expected to take place in November.
