Tel Aviv: The German Bundestag has approved an expansion of the Arrow 3 defence system contract with Israel, valued at approximately $3.1 billion, which will complement the initial purchase agreement signed by Israel and Germany approximately two years ago, valued at roughly $3.5 billion.
Together, the Arrow agreement, signed by the Israel Ministry of Defence (IMOD) and the German Federal Ministry of Defence (BMVg), totals approximately $6.5 billion, representing the largest Israeli defence export deal ever.
As part of the contract expansion, the IMOD and the BMVg have agreed to significantly increase the production rate of Arrow 3 interceptors and launchers to be supplied to Germany, substantially enhancing its air and missile defence capabilities.
Under the IMOD’s strategy led by Defence Minister, Israel Katz, and IMOD Director General Maj Gen (Res.) Amir Baram, the expansion of defence exports – including the Arrow contract – will significantly enhance the IDF’s force build-up and strengthen Israel’s defence industry and economy.
The contract expansion is expected to be signed tomorrow on December 18 in Germany, led by Director of the Israel Missile Defence Organisation (IMDO) within the Ministry’s Directorate of Defence Research and Development (DDR&D), Moshe Patel, and the Director General of the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support, Annette Lehnigk-Emden, with participation from representatives of the IMOD, the BMVg, and Israel Aerospace Industries (IAI).
The Arrow 3 system, which has demonstrated impressive operational capabilities during the war with dozens of successful interceptions, is jointly developed and produced by the IMOD’s DDR&D and the US Missile Defence Agency (MDA). IAI serves as the prime contractor for the development and production of the Arrow aerial defence system.
Head of the DDR&D, Brig Gen (Res.) Dr Daniel Gold said that the Arrow 3 contract expansion with Germany represents significant confidence in the IMOD, Israel’s defence industry, and our bilateral relationship.
”The Arrow system, a cornerstone of Israel’s multi-layered air defence architecture that protected our citizens throughout this war, now stands to guard over German skies. We remain committed to fulfilling this critical mission,” he said.
IAI President and CEO, Boaz Levy said that the close defence cooperation between our two countries is based on mutual responsibility, shared values, and a joint commitment to the protection of civilian lives, serving as a solid foundation for the development of additional advanced solutions to address evolving threats.
”This strategic partnership will undoubtedly provide Europe as a whole with some of the most advanced air defence capabilities in the world,” Boaz Levy added.
-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda


