Ballistic-missile interceptor
Weapon system · Israel · Weapon system
Arrow 3 is the top layer of Israel's missile shield, built to destroy ballistic missiles above the atmosphere. State-owned Israel Aerospace Industries (IAI) is prime contractor, Rafael is a key subcontractor, and the programme is co-funded with the US Missile Defense Agency. Calcalist reported in March 2026 that each interceptor costs just over NIS 2 million. It shielded Israel during the June 2025 and 2026 wars with Iran: Calcalist reported about 440 Iranian ballistic missiles in the first four weeks of the 2026 war, with about 92% intercepted. The weapon is also IAI's biggest export product. Germany received its first Arrow 3 battery at Holzdorf on 3 December 2025, and the Bundestag approved a further €3B expansion on 17 December 2025; IAI says the German programme now exceeds $6.5B. The UN Special Rapporteur's July 2025 report notes that Israeli weapons are marketed as "battle-proven" after use in its military campaigns, and IAI is among the firms it names.
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This follow-on contract with Germany, expanding the procurement of the Arrow 3 system represents another mega deal for Israel Aerospace Industries.
Israel on Wednesday handed over its Arrow 3 long-range missile defense system to the German Air Force in a ceremony at an airbase south of Berlin ... has downed hundreds of ballistic missiles launched at Israel by Iran and the Iran-backed Houthi terror group in Yemen, with an interception rate of 86 percent during the 12-day conflict
Tomer, a government-owned company, and Rafael Advanced Defense Systems are key subcontractors for the development and production of the Arrow 3 interceptor.
IAI ... the prime contractor for the system's development and production
Israel Aerospace Industries has signed a contract worth approximately USD 3.1 billion with Israel Ministry of Defense for the expansion of Germany's procurement of the Arrow 3 missile defence system. ... The total value of the Arrow 3 programme is expected to exceed USD 6.5 billion, making it the largest defence export deal in Israel's history
The attack was intercepted and thwarted by missile interception systems, such as the Israeli Arrow 3 system [April 2024]; jointly produced by IAI and Boeing, Boeing responsible for 40–50 percent of production content
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