Illustration of an Arrow-3 missile interceptor. (Israel Aerospace Industries via JNS) (Israel Aerospace Industries via JNS)
Arrow-3

The deal, valued at $3.5 billion, is able to proceed following approval from the US, which co-developed the system.

By United with Israel Staff

The US has approved Israel’s sale of the the Arrow 3 defense system to Germany, the Israeli Defense Ministry announced on Thursday.

The sale is valued at $3.5 billion, making it Israel’s largest-ever defense deal.

Because the system, which is designed to intercept exo-atmospheric ballistic missiles, was jointly developed by Israel and the US, Israel needs US approval to sell it to a third party.

The deal entails an advance payment of $600 million, to be transferred to Israel after a letter of commitment is signed in the coming weeks.

The full contract for $3.5 billion is to be signed by the end of the year, subject to approvals from the Israeli and German parliaments.

Defense Minister Yoav Gallant hailed the US’ approval of the deal as “an expression of confidence in the excellent capabilities of Israel’s defense industries.”

“This is a significant decision, which will contribute to Israel’s force buildup and economy. It is also particularly meaningful to every Jewish person, that Germany is acquiring Israeli defense capabilities,” he added.

Director General of the Israel Ministry of Defense, Brig. Gen. (res.) Eyal Zamir, said that the deal “holds far-reaching implications for decades to come.”

“It strengthens the defense relations between Israel and Germany in various areas,” he said, noting that “part of the proceeds will be dedicated to bolstering Israeli defense systems.”

“This landmark deal, the largest defense export agreement in our country’s history, will propel Israeli defense exports to a new record, following last year’s remarkable achievement of 12.5 billion dollars.

“The Arrow 3 agreement reinforces our unwavering alliance with the USA, encompassing strategic, political-defense, and industrial cooperation.

“Notably, system components currently manufactured in the USA for Israel will also be produced for Germany, further strengthening our partnerships with the U.S. industrial base,” Zamir added.

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