An agreement to begin the process of procuring the Israeli Arrow 3 anti-ballistic missile defence system for the German Armed Forces was signed in Berlin on September 28, 2023, by the government of Germany, the Ministry of Defence of Israel, and the Israeli corporation Israel Aerospace Industries (IAI). The final contract is anticipated to be signed in November of 2023.
According to the agreement, the contract cost has been agreed upon to be 3.5 billion euros, and the German government is contributing an advance payment of 600 million euros towards the deal’s price. It is anticipated that Germany will receive the first battery of the Arrow 3 system around the fourth quarter of 2025. It also appears that Germany intends to install at least three batteries.
Thus, Germany has become the first foreign customer for the Arrow series of Israeli-American missile defence systems operated in Israel since 2000. These systems are known in Israel by their Hebrew acronym “Hetz.” On August 16, the United States government approved the system’s sale to Germany.
The Arrow 3 defence system is designed to intercept ballistic rockets far before they enter the planet’s atmosphere. It is a component of Israel’s missile defence system, which also includes the “Iron Dome,” its primary purpose is to intercept missiles that have a short range.
Germany’s purchase of the Arrow 3 system is interpreted as a reaction to the intensified war in Ukraine. During a news conference, the German Minister of Defence, Boris Pistorius, stated that acquiring Arrow 3 would offer Germany “defence against ballistic missiles.” These discussions occurred after Pistorius had met with Yoav Galant, the Minister of Defence of Israel. He remarked, “Israel is contributing to our security – that of Germany and Europe,” confirming Berlin’s ambitions to integrate the Israeli system into NATO’s European air defence system.
According to the minister, Germany can “use Arrow 3 from late 2025. In June, the decision to purchase the missile defence system received approval from both the budget and defence committees of the Bundestag. The funding will come from a dedicated fund for the modernisation of the Bundeswehr (German for “Armed Forces”), which has a total allocation of €100 billion and is designed for defence-related expenditures and projects.
