Tel Aviv: Israel and Germany have formalized a landmark defense agreement, signing a $3.1 billion contract to expand Germany’s Arrow 3 air and missile defense capabilities, Israeli and German officials confirmed on Thursday. The move strengthens Germany’s missile shield and marks one of the largest defense export deals in Israel’s history.
The agreement follows an earlier contract signed in 2023, bringing the total value of Germany’s acquisition of Israel’s Arrow 3 system to approximately $6.7 billion. Arrow 3, developed jointly by Israel Aerospace Industries (IAI), the Israeli Ministry of Defense, and the U.S. Missile Defense Agency, is designed to intercept long range ballistic missiles outside Earth’s atmosphere, complementing Germany’s existing Patriot and IRIS T systems.
Germany’s procurement and expansion of Arrow 3 come amid heightened concerns over regional and global missile threats. The system provides Europe with a high-altitude defensive layer capable of neutralizing ballistic missiles before they reach populated areas. Officials note that Arrow 3 strengthens Germany’s national defense while enhancing NATO’s collective security posture. The first Arrow 3 battery in Germany became operational earlier this month, marking the country’s entry into the select group of nations with exo-atmospheric missile interception capabilities.
The $3.1 billion contract will significantly increase the production of Arrow 3 interceptors and launchers, accelerating their integration into Germany’s layered missile defense network. Both countries plan a formal signing ceremony, attended by officials from the Israeli and German defense ministries and representatives from IAI, cementing a growing military and technological partnership.
For Israel, the deal represents a diplomatic and economic milestone, reinforcing its status as a leading exporter of advanced missile defense systems. The contract also deepens Israel’s longstanding defense collaboration with Europe and the United States, showcasing its technological expertise on the global stage. For Germany, Arrow 3 is a strategic asset that enhances national defense and strengthens its deterrence capabilities in response to regional threats, including the ongoing war in Ukraine and other long-range missile risks.
The expansion of Germany’s Arrow 3 system aligns with a wider pattern of military modernization across Europe. The Bundestag recently approved multiple defense procurement initiatives, including the provision of air defense systems such as Patriot and IRIS T to NATO partners. These efforts highlight Berlin’s commitment to collective security, technological readiness, and strategic deterrence.
The Israel-Germany Arrow 3 deal reflects a deepening defense relationship built on shared security interests and high-end technological cooperation. As Europe navigates an increasingly complex geopolitical landscape, the enhanced missile shield promises to play a key role in regional stability and national protection for decades to come.