December 18, 2025 2:19 pm
by Reuters and Algemeiner Staff
Israel and Germany signed a contract worth around $3.1 billion to expand the Arrow-3 air and missile defense system manufactured by Israel Aerospace Industries, Israel‘s defense ministry said on Thursday.
Germany first purchased the Arrow system in 2023, as it sees Russia’s intermediate-range missiles as the primary threat to its population and critical infrastructure.
“Combined, the two agreements total approximately $6.7 billion, representing the largest defense export deal in Israel’s history,” the ministry said.
Germany in December became the first European nation to deploy the Arrow air defense system, built to intercept intermediate-range ballistic missiles such as Russia’s Oreshnik, as it seeks to counter what it views as a growing threat from Moscow.
The system, developed by IAI in cooperation with the US Missile Defense Agency, is used as the upper layer of Israel‘s missile defenses, together with the Iron Dome, which takes out short-range threats.
