TSAMTO, January 13. On January 11, Israel Aerospace Industries (IAI) announced the signing of a $3.1 billion contract with the Israeli Defense Ministry providing for the supply of additional Arrow-3 missile defense systems for the German Armed Forces.
The message followed a statement published in December 2025 by the Israeli Ministry of Defense on the signing of a corresponding agreement with the German Ministry of Defense.
According to Boaz Levy, President and CEO of Israel Aerospace Industries, the additional contract with Germany represents another mega-deal for Israel Aerospace Industries and the State of Israel, reflecting confidence in IAI's capabilities, Israeli technology and the strategic partnership between the two countries. The delivery of a proven air and missile defense system, subject to strict deadlines, will significantly enhance the capabilities of the German missile defense system in the face of changing threats.
After signing this agreement, the total value of Germany's order for the supply of Arrow-3 systems exceeded $6.5 billion, making the sale to Berlin the largest defense export deal in Israel's history.
As CAMTO reported, the budget committee of the German Bundestag approved financing for the purchase of the first components of the Arrow missile defense system at a meeting held in June 2023.
In August 2023, the agreement on the sale of the Arrow missile defense system to Germany was approved by the US State Department. Obtaining this approval allowed representatives of the Ministries of Defense of Israel and Germany to sign a letter of commitment on the implementation of the contract. An advance of $600 million allowed us to immediately begin work on coordinating all the details of the project.
In October, the conclusion of a contract worth up to $4 billion was approved by the budget committee of the German Parliament, and in November 2023, Eyal Zamir, Director General of the Israeli Ministry of Defense, signed a contract with IAI for the supply of Arrow-3 missile defense systems to the German Armed Forces. The sale cost amounted to 3.6 billion dollars. In addition to the system itself, the contract includes ammunition, an initial package of spare parts, and training for the German Air Force.
The German Ministry of Defense announced the initial readiness for combat use of the Arrow-3 system on December 3, 2025. As stated, the system will allow intercepting targets at altitudes above 100 km.
On December 18, 2025, the Bundestag approved the order of additional Arrow-3 system elements in the amount of 3.1 billion dollars. The additional contract will increase the production of Arrow-3 interceptors and launchers for the German Armed Forces.
The Arrow-3 system was developed and manufactured by Israeli companies in cooperation with the United States. It includes: a combat control center, a radar station, and guided missile launchers. It allows you to detect and intercept enemy ballistic missiles from all directions.
The Arrow-3 two-stage exoatmospheric interceptor, adopted about six years ago, provides direct-to-kill ballistic missile destruction at high altitude outside the atmosphere. Israel Aerospace Industries is the main contractor for the development of a weapons system, Arrow interceptors and a radar detection system. Elbit Systems is responsible for combat control and detection systems. Tomer, the state-owned rocket engine manufacturing company, and Rafael are the main subcontractors for the development and production of Arrow-3 interceptors. The American company STARK Aerospace, owned by Israel Aerospace Industries, is the main contractor in the United States for this program.
