The Israeli Defense Ministry has announced a major deal with Israel Aerospace Industries (IAI) to significantly expand the production of ‘cutting edge’ Arrow 3 interceptor missiles.
Maj. Gen. (Res.) Eyal Zamir, the Director General of the Israeli Ministry of Defense, signed a contract to increase the serial production of Arrow-3 interceptors.
In a statement released on December 25, the Defense Ministry announced that IAI will deliver a “significant amount” of Arrow 3 interceptors under the new contract, though the exact financial terms remain undisclosed.
“Under the agreement, led by the Israel Missile Defense Organisation (IMDO) within the Ministry’s Directorate of Defense Research & Development (DDR&D), IAI will supply the IDF with a significant number of Arrow-3 interceptors. The deal is valued at billions of shekels,” the MoD said.
The Arrow 3 system is designed to intercept ballistic missiles outside the Earth’s atmosphere and has become crucial to Israel’s defense strategy.
It has been deployed multiple times over the past 14 months of conflict, successfully thwarting missile attacks from both the Houthis and Iran, including attacks earlier this year in April and October.
“Israel has the best air defense capabilities in the world,” said Defense Minister Israel Katz. He further stated that the Arrow missile system represents a critical defense asset and is a testament to Israel’s technological and industrial prowess.
Katz, who visited an air base on December 24 where an Arrow 3 had intercepted a Houthi missile earlier that day, also reiterated the importance of Israel’s self-reliance in defense. “We do not rely on anyone except the IDF to protect communities and residents. The threat today is in the skies, the first missile war,” Katz said.
Eyal Zamir, the Director-General of the Defense Ministry, stressed the importance of the Arrow 3, calling it “the central layer” in Israel’s defense against missile threats.
Zamir recalled the system’s historic achievement of intercepting a missile in space during the early days of the ongoing war, noting that the Arrow 3 has since demonstrated a remarkably high interception success rate.
Boaz Levy, CEO of IAI, described the Arrow system as “tangible evidence of Israel’s technological strength” and underscored the strategic cooperation between Israel and the United States in developing advanced defense technologies.
Success Of Arrow Air Defense System
The Arrow missile defense system, developed collaboratively by Israel and the United States, includes both the Arrow-2 and Arrow-3 interceptors to counter long-range ballistic missile attacks.
The Arrow-3 made its combat debut just a year ago at the outset of Israel’s war with Hamas, and since then, it has proven highly effective. The system has successfully intercepted numerous missile threats during the current conflict, achieving an unprecedented success rate against Iranian missile attacks on April 14 and October 1, 2024.
The Arrow system has also gained traction in the global export market. Last year, Israel secured a landmark deal with Germany to supply the country with Arrow 3 interceptors for a contract worth approximately US$3.5 billion (3.3 billion euros). This sale stands as the largest military export deal in Israel’s history.
The shifting security landscape in Europe was the key reason for the export deal. In 2019, Israeli officials were actively promoting the Arrow 3 as an exportable defense system, though progress at the time was slow, and no particular nation had been identified.
However, after the Russian invasion of Ukraine, Germany recognized the strategic value of the Arrow 3 defense system to counter ballistic missile threats from Russia.
Meanwhile, Germany’s decision to choose the Arrow 3 over the USA’s highly regarded Terminal High Altitude Area Defense (THAAD) system came as a surprise to many. THAAD, a cornerstone of the US and allied air defense strategies, is widely regarded as one of the best missile defense systems available.
It is specifically designed to counter ballistic missile threats from adversaries like Russia and China, and its capabilities have led to its deployment in several US ally nations, including the United Arab Emirates, Israel, Romania, and South Korea.
When Germany opted for the Israeli-made Arrow 3 instead of THAAD, many Western experts questioned the decision, citing THAAD’s proven combat effectiveness and capabilities. However, the two systems are designed with different operational focuses.
While THAAD specializes in terminal defense against short-to-intermediate-range ballistic missiles, the Arrow 3 is optimized for intercepting long-range missiles outside of the Earth’s atmosphere.
Meanwhile, Israel is set to bid adieu to its aging Patriot missile defense systems and will replace them with more advanced air defense systems. This interestingly comes at a time when the demand for Patriots has increased dramatically due to the Russia-Ukraine War.
Arrow 3 Missile Defense System
Building on the capabilities of its predecessor, the Arrow 2, the Arrow 3 addresses a critical gap by providing the ability to intercept ballistic missiles outside of the Earth’s atmosphere, a feat the Arrow 2 could not achieve. This leap in capability is central to its role in defending Israel against increasingly sophisticated missile threats.
The development of the Arrow series has been significantly supported by the United States since the 1980s, with American company Boeing playing a direct role in the creation of the Arrow 3.
The system’s interceptor component is equipped with a kinetic kill vehicle, which is designed to destroy its target through a direct collision in space, known as an exo-atmospheric intercept, during the missile’s mid-course phase. This method of interception provides an effective defense against long-range, high-speed threats.
Arrow 3 is primarily aimed at countering a wide array of ballistic missiles, including the most destructive long-range weapons, such as intercontinental ballistic missiles (ICBMs).
These missiles travel at extreme speeds and altitudes, which makes their interception particularly challenging. By targeting these missiles outside of the atmosphere, the system offers an additional layer of security—particularly important when dealing with missiles that may be carrying nuclear, biological, or chemical warheads.
For Israel, the Arrow 3 plays a central role in defending against the growing ballistic missile threat from Iran. Tehran’s missile arsenal has continued to expand, with the potential to launch nuclear-capable missiles.
The Arrow 3, integrated with advanced radar systems like the Elta Green Pine L-band radar, provides Israel with an enhanced ability to detect, track, and intercept missiles at various stages of their flight.
From the German perspective, the Arrow 3 would provide a critical defense against potential Russian missile threats. As Russia continues to modernize and expand its strategic missile arsenal, including a new generation of ICBMs, the need for effective missile defense in Europe has become imperative.
Russian officials have already raised the prospect of using intermediate-range ballistic missiles, such as the Oreshnik, against European targets.
The Oreshnik is a highly capable missile designed to strike at long distances, and its recent use in the Ukraine war has heightened concerns across the continent.
In addition to the Oreshnik, Russia’s growing ICBM force includes the Sarmat, a heavy missile intended to replace the Cold War-era SS-18 Satan. The Sarmat can carry up to 10 multiple independently targetable re-entry vehicles (MIRVs).
Other additions to Russia’s ICBM arsenal include the RS-24 Yars, a mobile and silo-based missile system also equipped with MIRVs. These developments present major challenges to European defense, highlighting the critical need for a powerful missile defense system such as Arrow 3.
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