...
Thursday . 15 January . 2026
Breaking Update

German Bundestag Approves $3.1B Arrow 3 Defense Deal Expansion with Israel

Germany's Bundestag approves a $3.1 billion expansion of the Arrow 3 defense system contract with Israel, totaling $6.5 billion for enhanced air and missile.

Ministry of Foreign AffairsBreaking News

(Communicated by the Israel Ministry of Defense Spokesperson)

The German Bundestag has approved an expansion of the Arrow 3 defense system contract with Israel, valued at approximately $3.1 billion, which will complement the initial purchase agreement signed by Israel and Germany approximately two years ago, valued at roughly $3.5 billion. Together, the Arrow agreement, signed by the Israel Ministry of Defense (IMOD) and the German Federal Ministry of Defense (BMVg), totals approximately $6.5 billion, representing the largest Israeli defense export deal ever.

As part of the contract expansion, the IMOD and the BMVg have agreed to significantly increase the production rate of Arrow 3 interceptors and launchers to be supplied to Germany, substantially enhancing its air and missile defense capabilities.

Under the IMOD’s strategy led by Defense Minister, Israel Katz, and IMOD Director General Maj. Gen. (Res.) Amir Baram, the expansion of defense exports – including the Arrow contract – will significantly enhance the IDF’s force build-up and strengthen Israel’s defense industry and economy.

The contract expansion is expected to be signed tomorrow (Thursday, 18 December 2025) in Germany, led by Director of the Israel Missile Defense Organization (IMDO) within the Ministry’s Directorate of Defense Research and Development (DDR&D), Moshe Patel, and the Director General of the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support, Annette Lehnigk-Emden, with participation from representatives of the IMOD, the BMVg, and Israel Aerospace Industries (IAI).

The Arrow 3 system, which has demonstrated impressive operational capabilities during the war with dozens of successful interceptions, is jointly developed and produced by the IMOD’s DDR&D and the U.S. Missile Defense Agency (MDA). IAI serves as the prime contractor for the development and production of the Arrow aerial defense system.

Defense Minister, Israel Katz: “The Bundestag’s approval of the Arrow 3 contract expansion is a clear expression of Germany’s profound confidence in Israel, our technological capabilities, and our shared commitment to protecting our citizens against escalating threats. This represents a first-tier strategic partnership rooted in a long-term defense strategy. The revenues from this deal will enable continued advanced strategic developments, strengthen the IDF’s force posture, and ensure Israel’s qualitative edge in the years ahead against our adversaries – while deepening our defense cooperation with strategic partners across Europe and globally.”

IMOD Director General, Maj. Gen. (Res.) Amir Baram: “The Arrow 3 contract expansion represents another significant milestone in our deepening strategic partnership with Germany, our key European ally. This landmark deal, valued at over $3 billion, embodies the IMOD’s strategy to expand defense exports. The agreement will reinforce Israel’s position as a global security leader, accelerate Arrow production for the IDF, and channel billions into strengthening our defense industrial base and advancing next-generation air defense capabilities.”

Head of the DDR&D, Brig. Gen. (Res.) Dr. Daniel Gold: “I welcome the signing of the Arrow 3 contract expansion with Germany. This represents significant confidence in the IMOD, Israel’s defense industry, and our bilateral relationship. The Arrow system, a cornerstone of Israel’s multi-layered air defense architecture that protected our citizens throughout this war, now stands guard over German skies. We remain committed to fulfilling this critical mission.”

IAI President and CEO, Boaz Levy: “IAI’s pivotal role in Germany’s air defense array and the trust established with the German government were recently demonstrated during the delivery of the Arrow 3 system, just two years from contract signing. The mutual trust, advanced technological capabilities – as proven in operational deployment – and adherence to timelines all led the German government to approve the follow-on procurement of the Arrow air missile defense system. The close defense cooperation between our two countries is based on mutual responsibility, shared values, and a joint commitment to the protection of civilian lives, serving as a solid foundation for the development of additional advanced solutions to address evolving threats. This strategic partnership will undoubtedly provide Europe as a whole with some of the most advanced air defense capabilities in the world.”

Attached for your use: Photos from the ceremony marking the initial operational capability handover of the Arrow 3 system to Germany, held earlier this month.

author avatar
Ministry of Foreign Affairs
Live Breaking Updates

Breaking News Coverage

Real-time breaking news coverage from Israel and the Middle East. Stay informed with the latest developments as they happen.

Thursday, 15 January 2026Updated continuously
Politics31 minutes agoNew

National Eruv Mapping

Israel's Ministry of Religious Services and Survey of Israel launch a unified national eruv mapping project, granting councils editing permissions via govmap.

Politics45 minutes agoNew

Record high in public transport

Israel's public transport saw a record 912 million trips in 2025, a significant increase from 2024, reflecting a growing public shift to buses and trains.

Politics58 minutes agoNew

Rabies found in dog in Rosh Pinna, Galilee

Rabies confirmed in a jackal in Rosh Pinna, Galilee. Health Ministry urges contact for anyone or pets exposed between Dec 27, 2025, and Jan 10, 2026.

Politics59 minutes agoNew

Public Transport Record

Israel's public transport shattered records in 2025 with 912 million trips, surpassing 2024's 904 million. This milestone reflects a growing shift to public.

Politics3 hours agoNew

Netanyahu speaks with parents of fallen captive soldier

Prime Minister Netanyahu met parents of fallen captive soldier Sgt. Maj. Ran Guili, stressing his return is Israel's top priority and Hamas must return all.

Crime3 hours agoNew

Israeli Forces Demolish Terrorist’s Hebron Home

Israeli forces demolish terrorist Imran al-Atrash's Hebron home overnight. Atrash was responsible for a November car-ramming and stabbing attack that killed.

Disasters3 hours agoNew

Moderate Earthquake Shakes Southern Israel, No Injuries Reported

A moderate 4.2 magnitude earthquake shook southern Israel near Dimona, with tremors felt across the Dead Sea region, but Magen David Adom reported no injuries.

Business4 hours agoNew

One Million Israelis Jump to Private Power Providers

Over one million Israelis switched to private energy providers in 2025, benefiting from 7-20% discounts on electricity bills due to a major reform.

Business4 hours agoNew

New Labor Agreement Reached at National Power Systems Company

Israel's Ministry of Finance and Histadrut sign new labor agreement for 500 Noga employees, introducing modern salary structures, a 3% base increase.

Health15 hours ago

Over 1,000 New Immigrant Doctors Come to Israel Over Past Two Years

Over 1,000 new immigrant doctors joined Israel's healthcare system in two years, with 541 arriving last year from Russia, US, Canada, France, and South America.