Breaking Update

Israel Signs $3.1B Contract to Expand Germany’s Missile Defense System

Israel Aerospace Industries signs $3.1B deal to expand Germany's Arrow 3 missile defense system, a major boost to Israeli technology and a historic defense.

January 11, 2026 at 4:28 pm Pesach Benson Business

Jerusalem, 11 January, 2026 (TPS-IL) — Israel Aerospace Industries (IAI) announced a $3.1 billion contract with Israel’s ministry of Defense to expand Germany’s procurement of the Arrow 3 air missile defense system. The agreement follows a December 17, 2025, announcement by Germany’s Ministry of Defense and is part of a total deal valued at over $6.5 billion—the largest defense export in Israel’s history.

IAI CEO Boaz Levy said the contract reflects “a deep vote of confidence in Israeli technology and the strategic partnership between our two countries” and will strengthen Germany’s missile defense capabilities. The Arrow 3 system was developed by IAI in cooperation with Israel’s Ministry of Defense and the U.S. Missile Defense Agency.

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