Germany approves new Arrow 3 missile defence system contract, lifting historic deal with Israel to $6.5 billion

By Lukasz Prus (Defence Industry Europe)

Germany’s Bundestag has approved a $3.1 billion expansion of the Arrow 3 air and missile defence contract with Israel. The move complements an initial agreement worth about $3.5 billion signed roughly two years ago, bringing the total value to around $6.5 billion, the largest Israeli defence export deal to date.
Photo: Israeli Ministry of Defence.

Germany’s Bundestag has approved a $3.1 billion expansion of the Arrow 3 air and missile defence contract with Israel. The move complements an initial agreement worth about $3.5 billion signed roughly two years ago, bringing the total value to around $6.5 billion, the largest Israeli defence export deal to date.

 

The expanded contract between the Israeli Ministry of Defence and Germany’s Federal Ministry of Defence will significantly increase production of Arrow 3 interceptors and launchers for delivery to Germany. This is intended to substantially strengthen Germany’s air and missile defence capabilities.

 

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According to the Ministry of Defence, the agreement aligns with a defence export strategy led by Defence Minister Israel Katz and Director General Maj. Gen. (Res.) Amir Baram. The approach is expected to support the Israel Defense Forces’ force build-up while reinforcing Israel’s defence industry and broader economy.

The contract expansion is due to be signed tomorrow, Thursday, in Germany. The signing will be led by Moshe Patel, Director of the Israel Missile Defense Organization, and Annette Lehnigk-Emden, Director General of the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support, with representatives from both ministries and Israel Aerospace Industries present.

 

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Arrow 3 has demonstrated operational performance during the current war, with dozens of successful interceptions reported. The system is jointly developed and produced by the Israeli Ministry of Defence’s Directorate of Defense Research and Development and the US Missile Defense Agency, with Israel Aerospace Industries as the prime contractor.

 

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