IAI CEO reveals rapid progress on Arrow 4 missile defense as Israel delivers Arrow 3 system to Germany

Israel Aerospace Industries CEO Boaz Levy revealed during the Calcalist–Bank Leumi Berlin Conference on Wednesday that the company is rapidly advancing the development of Arrow 4, Israel’s next-generation aerial defense missile interceptor.

“In the recent conflict we relied on Arrow 3 and Arrow 2. The first Arrow 2 interceptor was delivered on November 29, 1998. Some have done their job, and some now need to be replaced by Arrow 4. We’re deep into development and approaching the start of serial production. Together with Arrow 3, it will provide the best answer to regional threats – and threats elsewhere.” Levy stated.

He hailed Israel’s delivery this week of the Arrow 3 system to Germany, the first country outside Israel to operate the cutting-edge Israeli aerial defense system.

“This is a significant milestone in a process that has lasted two years since the signing,” Levy said.

“It’s the result of extremely intensive work by the State of Israel and by IAI in the midst of a war. We demonstrated Israeli capabilities, delivered a full weapons system on time, trained our partners in Germany – and today they know how to operate it independently,” he continued.

In 2023, merely a year after the Russian invasion of Ukraine, Germany signaled interest in boosting its aerial defenses by acquiring the Israeli Arrow 3 system for 4 billion euros ($4.30 billion).

Levy praised the Arrow deal with Germany:

“A fantastic deal. They signed it about a week before October 7,” Levy stated. “At the time, they knew they were choosing the best system in the world. Today they know it with complete certainty, because it was proven on the battlefield in Israel. Just as it intercepted ballistic missiles from Yemen and from Iran with phenomenal accuracy, it will be able to intercept threats aimed at Germany – and also provide protection for countries surrounding Germany."

Levy emphasized that the Arrow system has played a critical role in saving lives amid missile attacks from hostile countries such as Iran and would protect Germany and Europe from potential Russian missiles.

“In Israel’s war, the need for missile defense systems against ballistic threats was demonstrated beyond debate. Questions that existed before the war – ‘why do we need this?’ and ‘what does it cost?’ – no longer exist. Any leader in the free world who feels threatened must protect his citizens. And the cost-effectiveness of that protection was proven in Israel: a single interceptor launched at the right altitude can prevent catastrophic damage on the ground. Israel’s citizens know they have someone to rely on – and starting this week, Germany’s citizens will also be less worried and know they have someone to rely on.”

The head of Israel’s largest defense technology company stressed that it has capacity for delivering systems both to the Israeli military and to allies such as Germany.

“The system supplied to Germany was mandated by the chancellor to be identical to the Israeli system. We are delivering exactly the same system the IDF has. All that remains is production – and that we know how to do. We’ve already proven that if we commit to a two-year timeline, we meet it, even in the middle of a war,” Levy said.

Levy who is a son of a Holocaust survivor, emphasized the dramatically changed relationship between Germany and the Jewish people.

“On a personal level, I’m closing another small circle, as the son of a Holocaust survivor. The world’s first ballistic missile was created by Dr. Wernher von Braun in Germany – and now the State of Israel is delivering a weapons system designed by the son of a Holocaust survivor to German soil, where it will defend against ballistic missiles,” he assessed.

In November 2024, former Israeli Defense Minister Yoav Gallant articulated a similar sentiment.

“Only 80 years since the end of the Second World War, yet Israel and Germany join hands today in building a safer future, for both nations,” Gallant stated at the time.