The Largest Security Deal in Israel's History... $3.6 Billion for the Arrow 3 System to Germany

SadaNews - The Israeli Aerospace Industries and the Ministry of Defense are preparing to deliver Germany the first operational system of the long-range missile defense system "Arrow 3" on Wednesday, according to the timeline agreed upon before the outbreak of the war, and without any delays related to it.

Details of what will be actually delivered have not yet been disclosed, but it has been confirmed that the system includes a radar and a launcher that differs from the version used in Israel.

In parallel, about 40 German experts are present at the Aerospace Industries headquarters in Israel for training on operating the system and understanding its features.

A senior security source suggested in an interview with the "Israel Hayom" newspaper that the deal may see additional phases in the future, confirming that other countries are interested in acquiring the system.

The deal between Israel and Germany was signed in September 2023, just before the outbreak of the war, and is valued at over 13 billion shekels (approximately $3.6 billion), making it the largest security deal in Israel's history.

Despite being asked to reinforce Arrow systems within Israel due to threats from the Houthis and Iran during the war, the Aerospace Industries succeeded in supplying the Israeli Occupation Forces with what they needed while also adhering to the delivery deadline to Germany as planned two years ago.

Officials assert that the deal with Germany has allowed Israel to expand production lines and increase infrastructure, materials, and workforce, thereby enhancing Israeli defense capabilities during the war and facilitating faster production of interception missiles in the future.

However, the execution of the deal came despite the tensions caused by German Chancellor Friedrich Merz's decision last August to impose a ban on supplying Israel with systems that could be used in the war, a ban that halted the supply of "Merkava" tank engines and disrupted a large number of tanks.

Nevertheless, Israel did not threaten to halt the sale of the "Arrow" system or any other systems before the ban was lifted in recent days.

A senior security source stated: "The ban should not have been imposed on Israel. The Germans know well where the truth lies, but they yielded to internal pressures. I am glad the ban was lifted, and I hope it does not happen again."