Tel Aviv: The Israeli Ministry of Defence, German Federal Ministry of Defence, and Israel Aerospace Industries will sign the landmark $3.5 billion defence agreement, marking Israel’s largest ever defence deal.
Israeli Defence Minister Yoav Gallant, the Director General of the Israel Ministry of Defence, Maj. Gen. (Res.) Eyal Zamir and Director of the IMOD Directorate of Defence R&D (DDR&D), Brig. Gen. (Res.) Dr Daniel Gold were notified August 17 by the US Department of State that the US government has approved Israel’s request for Germany to procure the Arrow 3 missile defence system from Israel.
The Arrow 3 Missile defence system is designed to intercept exo-atmospheric ballistic missiles. With its exceptional long-range interception capabilities, operating at high altitudes above the atmosphere, it stands as the top interceptor of its kind. The system employs a hit-to-kill approach for intercepting incoming threats.
The Arrow 3 system is co-developed and co-produced by the Israel Missile Defence Organization (IMDO) and the United States Missile Defence Agency (MDA). The industrial team is led by Israel Aerospace Industries (IAI).
After receiving approval from the US government, senior officials from the Israeli and German Ministries of Defence will partake in a ceremony to sign a Letter of Commitment (LOC), that marks the commencement of the agreement. The allocated commitment of $600 million will facilitate the immediate initiation of work on the project.
After signing the letter of commitment, the Israeli and German Ministries of Defence together with Israel Aerospace Industries will finalise the agreement’s details. Once approvals from both parliaments are obtained, the full contract will be ready to sign by the end of 2023.
The negotiations for the procurement agreement are led by the Director of the DDR&D IMDO, Moshe Patel, together with President and CEO of IAI, Boaz Levy, and Head of the Arrow 3 to Germany Program, Col. Carsten Koepper.
Israel Aerospace Industries (IAI) serves as the primary contractor, responsible for the development of the weapons system, Arrow interceptors, and radar detection system. Elbit Systems developed the BMC command and control system. Additionally, Tomer – a government-owned company, Rafael Advanced Defense Systems and Stark Aerospace, Inc. – a US subsidiary of IAI are the main subcontractors responsible for the development and manufacturing of the Arrow 3 interceptor.
Defence Minister Yoav Gallant said, “The US government’s approval of the delivery of the ‘Arrow 3’ missile defence system [to Germany] is an expression of confidence in the excellent capabilities of Israel’s defence industries. This is a significant decision, which will contribute to Israel’s force build-up and economy. It is also particularly meaningful to every Jewish person, that Germany is acquiring Israeli defence capabilities.”
Director General of the Israel Ministry of Defence, Brig. Gen. (res.) Eyal Zamir commented, “This historic agreement holds far-reaching implications for decades to come. It strengthens the defence relations between Israel and Germany in various areas, as discussed in recent meetings with the State Secretary of the German Federal Ministry of Defense, Benedikt Zimmer.
Director of the Directorate of Defense R&D in the IMoD, Brig. Gen. (res.) Dr. Daniel Gold said that the American approval marks a momentous milestone in the strategic relationship between Israel and the United States, particularly in the realm of missile defence.
President and CEO of IAI, Mr. Boaz Levy said, “We at Israel Aerospace Industries are happy to have received approval from the U.S. Department of State, alongside our partners in the project, the Israeli Ministry of Defence, to develop the world’s finest air defence system, Arrow 3, for Germany.”
