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update deskIsrael News

Germany to buy Israel’s Arrow-3 system in $4 billion deal

The deal includes advance payments of up to $600 million, pending parliamentary approval.

An illustration of the Arrow-3 missile interceptor. Credit: Israel Aerospace Industries.
An illustration of the Arrow-3 missile interceptor. Credit: Israel Aerospace Industries.

Germany plans to purchase Israel’s Arrow-3 missile defense system for nearly $4.3 billion, Reuters reported on Friday.

Berlin wants the system to defend against the threat of Russian missiles.

German lawmakers will be asked to greenlight advance payments of up to $600 million next week, with the German government seeking to strike a deal with Israel on the purchase of the system by the end of the year, according to the report.

According to documents seen by Reuters, should the deal fall through, Germany would forfeit some or all of the advance payments, to cover any cost incurred by Israel by that time. 

The German Air Force would take delivery of the system, which is designed to intercept ballistic missiles outside the atmosphere, by the fourth quarter of 2025.

Should the agreement be completed, Germany would become the first foreign purchaser of the system. Israel and Germany had been in talks previously regarding the Arrow 3, but a deal was delayed due to the lack of a green light from the United States for Israel to export the system.

The system, among the most advanced of its kind, was jointly developed by the Israeli Missile Defense Organization and the U.S. Missile Defense Agency.

The primary contractor for the integration and development of the system is Israel Aerospace Industries, working with additional Israeli and American defense firms.

The European Leadership Network (ELNET), an NGO working to strengthen ties between Israel and E.U. countries, praised the reported progress on the deal.

“This planned purchase underscores the deepening ties between Germany and Israel, particularly in the realm of security and defense. It is a testament to the high regard for Israeli technology and innovation on the global stage,” said David Siegel, president of Friends of ELNET.

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