Defense Ministry Signs Deal for Domestic Production of Arrow-3 Interceptors

Photo Credit: Israel Ministry of Defense

The Arrow 3. long-range air defense system.

Israel’s Defense Ministry has closed a deal worth billions of shekels to expand the serial production of interceptors for the Arrow-3 long-range aerial defense system.

The Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir, signed a production contract Wednesday with Israel Aerospace Industries (IAI) to supply the IDF with a “significant number” of the interceptors.

The agreement was led by the Israel Missile Defense Organization (IMDO) within the Ministry’s Directorate of Defense Research & Development (DDR&D).

The signing ceremony, held at the Ministry’s headquarters in Tel Aviv, was attended by the Head of the DDR&D, Brig. Gen. (Ret.) Dr. Daniel Gold; CEO of IAI, Boaz Levy; Director of the IMDO, Moshe Patel; the Ministry’s Head of Finance Department, CPA Dekel Cohen; and other senior officials.

The Arrow system, which includes the Arrow-2 and Arrow-3 interceptors, was jointly developed by the Israeli and US governments to counter long-range ballistic missile threats, like the Houthi hypersonic missile fired at Israel early Wednesday morning from Yemen.

During the current war, the Arrow system successfully intercepted numerous threats with high success rates, demonstrating unprecedented performance on a global scale against Iranian missile attacks both on April 14, 2024, and October 1, 2024.

The Arrow system incorporates groundbreaking technology and is considered one of the most advanced defense systems in the world.

IAI is the prime contractor for developing the Arrow system and its interceptors through its MLM Division in partnership with the US company Stark Aerospace. IAI’s ELTA Division and TAMAM Division, along with Elbit Systems, Tomer, and Rafael, also contribute to the system’s production.

The IMDO within the Ministry’s DDR&D continues to lead the development and production of Israel’s multi-layered air defense systems, which include the Arrow, David’s Sling, and Iron Dome systems. It also strengthens international partnerships in missile defense and supports Israel’s defense industries.

“Israel has the best aerial defense capabilities in the world,” Defense Ministry Israel Katz said.

“The Arrow 3 system, which proved its operational superiority during the war against Iran’s missile attacks and the Houthi terrorist organization’s missile launches, is not just a critical defense layer against missile threats – but also a symbol of the Israeli industry’s groundbreaking capabilities.”

Katz underlined the importance of Israel’s national security and technological independence.

“With today’s signing of the deal, we express confidence in Israeli technology and the Israeli defense industry,” Zamir said.

“We will continue to ensure the defense array is prepared for evolving challenges. The deal will inject billions of shekels into the Israeli industry, support thousands of households, and strengthen local production independence.”

IAI CEO Boaz Levy noted that the Arrow system is designed to deal with long-range ballistic threats at exceptional altitude and precision, using breakthrough technologies that position it as one of the most advanced defense systems in the world.

“During the war, the system stood at the forefront of Israel’s aerial defense, achieving unprecedented success rates, which proved the ingenuity and dedication of the engineers and professionals at Israel Aerospace Industries,” Levy said.

“The current procurement will strengthen Israel’s defense capabilities and allow us to continue improving the system’s performance, deal with future threats, and ensure a significant advantage over our enemies.”