Germany signs $3.1 billion expanded Arrow missile defense deal with Israel

Germany and Israel Aerospace Industries (IAI) signed an expanded Arrow 3 defense system agreement on Sunday valued at $3.1 billion, marking the second Arrow missile defense deal Germany has signed with the Israeli defense company in two years.

Last month, the German parliament approved the Arrow defense expansion agreement, bringing the total value of Germany’s Arrow orders to more than $6.5 billion. To date, it is the largest defense agreement ever signed with an Israeli defense company.

The Israeli Defense Ministry confirmed that, together with its German counterpart, it has “agreed to significantly increase the production rate of Arrow 3 interceptors and launchers to be supplied to Germany, substantially enhancing its air and missile defense capabilities.”

Amir Baram, director-general of the Israeli Defense Ministry, said the defense agreement represents the deepening security ties between Berlin and Jerusalem.

“The Arrow 3 contract expansion represents another significant milestone in our deepening strategic partnership with Germany, our key European ally. This landmark deal, valued at over $3 billion, embodies the IMOD’s strategy to expand defense exports,” Baram stated.

The head of Israel's Directorate of Defence Research & Development, Brig.-Gen. (Res.) Daniel Gold echoed similar sentiments.

“This represents significant confidence in the IMOD, Israel’s defense industry, and our bilateral relationship. The Arrow system, a cornerstone of Israel’s multi-layered air defense architecture that protected our citizens throughout this war, now stands guard over German skies.”

IAI President and CEO Boaz Levy emphasized the close relations his company has formed with Germany over the last two years.

“IAI’s pivotal role in Germany’s air defense array and the trust established with the German government were recently demonstrated during the delivery of the Arrow 3 system, just two years from contract signing.”

“The mutual trust, advanced technological capabilities – as proven in operational deployment – and adherence to timelines led the German government to approve the follow-on procurement of the Arrow air missile defense system,” Levy added.

Germany and Israel have developed close military and intelligence ties that are mutually beneficial.

In December, Germany became the first nation outside the Jewish state to deploy the Arrow aerial defense system to boost Berlin’s aerial defenses against potential Russian and Iranian ballistic missiles. Following the Russian invasion of Ukraine in 2022, Germany signaled its interest in acquiring Israeli aerial defense systems.

Last month, the IDF's former air defense chief, Brig.-Gen. (res.) Ran Kochav, placed the historic defense agreement with Germany in a wider context.

“Less than 80 years after Luftwaffe planes terrorized Europe and destroyed our people, the Jewish state provides Germany with the umbrella that will protect its skies. This is the triumph of the Israeli spirit and resilience," he said in an interview with The Jerusalem Post.

“There is a profound significance in the fact that Germany...is choosing Israeli technology to protect its citizens. This stands as a testimony to the journey that both countries have taken and the mutual trust that has been built,” he added.