Israel Makes History with $3.5 Billion Arrow 3 Missile Defense System Deal, Strengthening Global Defense Industry

Israel Makes History with $3.5 Billion Arrow 3 Missile Defense System Deal, Strengthening Global Defense Industry
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In a historic move, Israel has announced that the United States has approved the sale of the Arrow 3 hypersonic missile defense system to Germany, in a landmark deal worth $3.5 billion. Developed and produced jointly by Israel and the United States, the Arrow 3 system is an interceptor designed to shoot down ballistic missiles above Earth's atmosphere.

The Israeli Ministry of Defense revealed that the US State Department had notified them of the US government's approval for Germany to procure the Arrow 3 system. This marks Israel's largest ever defense deal, and a significant milestone in the country's force buildup and economy.

Senior officials from the Israeli and German defense ministries are set to sign a letter of commitment to the deal, which includes a preliminary payment of $600 million. The agreement highlights the exceptional long-range interception capabilities of the Arrow 3 system, operating at high altitudes above the atmosphere.

It employs a hit-to-kill approach for intercepting incoming threats, making it one of the top interceptors of its kind. Israeli Defense Minister Yoav Gallant expressed his enthusiasm for the agreement, describing it as a historically significant decision that will further strengthen Israel's defense capabilities and economy. He also emphasized the meaningfulness of Germany acquiring Israeli defense capabilities to the Jewish community.

Partly financed by the United States, the Arrow system was developed and produced by Israeli Aerospace Industries (IAI) in collaboration with Boeing. With the ability to intercept ballistic missiles fired from a distance of up to 2,400 kilometers (1,490 miles), the Arrow 3 system has been instrumental in protecting Israel against attacks from Iran and Syria since its deployment in 2017.

The final contract for the deal is expected to be signed by the end of 2023, pending approval from the parliaments of both Germany and Israel. The German government anticipates the delivery of the Arrow 3 system in the final quarter of 2025. This sale comes as Berlin takes a leading role in bolstering NATO's air defenses in Europe, highlighting the urgency to enhance deterrence systems in response to Russia's continuous missile strikes on Ukraine.

The deal represents a significant turning point in Israel-Germany relations, as the Jewish state provides Germany with the means to defend itself. With this historic agreement, Israel solidifies its position as a key player in the global defense industry, showcasing its advanced technological capabilities in missile defense systems.


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