The agreement between Israel and Germany, signed more than two years ago, has become the largest export contract in the history of the Israeli defense sector. The value of the agreement, covering launchers, ammunition and radars, is over EUR 3.6 billion, which is equivalent to approximately USD 4.2 billion.. – informed the German Ministry of Defense.
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The Arrow 3 system that Germany is currently receiving, developed jointly by Israel and the United States, will be deployed at Holzdorf Air Base, located 120 km south of Berlin. Further locations are planned in the north-west and in the southern part of Germany. Boaz Levy, CEO of Israel Aerospace Industries (IAI), emphasized in the interview that the deliveries of equipment to Germany were on schedule, despite the difficulties related to the ongoing conflicts. Levy noted that German air force officers have already started training in how to use the system.
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The Arrow 3 system has played a key role in Israel's efforts against threats from Iran and Houthi militants from Yemen. In June, Israel exchanged missile fire with Iran for 12 days, and the intercept rate of Arrow 3 was 86 percent.
“In the German Arrow system, we used all the experience gained during the two-year war,” Levy said, referring to the conflict in the Gaza Strip in 2023, which broke out after the Hamas attack.
It is worth recalling that Germany's purchase of Arrow 3 took place in response to Russia's invasion of Ukraine in 2022, which forced European countries to review their defense capabilities. Berlin, a long-time ally of Israel, supported its actions against Hamas after the October 7 attacks, but as the conflict in Gaza escalated, Germany's position hardened. In August, Germany introduced an arms export embargo, which was lifted after a ceasefire was concluded.
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German Chancellor Friedrich Merz will visit Israel next weekend, where he will meet Prime Minister Benjamin Netanyahu. This will be the first visit by a European leader to Israel in several months. Levy emphasized that relations between the two countries, although deeply rooted, are not free from occasional tensions.
“I expect there will be more agreements and further cooperation in the future,” he added.
The German government has also expressed interest in the newer Arrow 4 program, which Levy said is expected to enter service “soon.”
