Israel completes historic Arrow 3 missile defense system delivery to Germany

Israel is set to complete the delivery of the Arrow 3 anti-ballistic missile defense system to Germany today (December 3), marking the first time another country will have independent access to this high-level military technology.

The contract between the Israeli and German governments was signed just over two years ago and constitutes Israel’s largest defense export deal to date.

According to the German defense ministry at the time, the deal was valued at 3.6 billion euros ($4.2 billion), including launch systems, ammunition, and radar.

The Arrow 3 was one of Germany’s first major procurement contracts following the war in Ukraine, which prompted governments across Europe to reassess their defense capabilities.

For Israel, the system has been a key component in its efforts to repel missile attacks from Iran and Yemen during the 12-day war.

Jointly produced by Israel and the US, the Arrow 3 system will be deployed at Holzdorf Air Base, approximately 120 kilometers south of Berlin, with additional bases to be established in the country’s northwest and south.

Boaz Levy, CEO of the state-owned company Israel Aerospace Industries (IAI), said in an interview, “The system was delivered to Germany on time in recent months, ahead of on-site training for German Air Force officials, despite the challenges posed by the war.”

IAI is the main contractor for the development of the Arrow 3, with Rafael Advanced Defense Systems and Tomer taking on smaller roles.

Levy, referring to the multi-front conflict stemming from the Al-Aqsa Flood operation and the subsequent war in Gaza, said, “We have incorporated all the lessons learned from the conflict over the past two years into the German Arrow system.”

The Israeli Ministry of Defense announced that the Arrow 3 had an interception rate of 86% during the conflict with Iran.

German Chancellor Friedrich Merz will travel to Israel over the weekend to meet with Prime Minister Benjamin Netanyahu. This will be the first official visit by a European leader to Israel in recent months.

IAI CEO Levy stated, “Israel-Germany relations have a deep-rooted history, but disagreements do occur from time to time, even among allies. I believe there will be more agreements and cooperation in the future.”

Levy said that the German government has also shown interest in the Arrow 4, which is planned to become operational “very soon.”