Arms procurement from Israel (IAI)
Contract or deal
Germany's Arrow 3 purchase is the largest arms export deal in Israel's history. Berlin signed in September 2023, in the first weeks of the genocide in Gaza, for a deal worth about €4B. Israel handed over the first battery at Holzdorf Air Base on 3 December 2025. On 17 December 2025 the Bundestag approved a €3B expansion for more interceptors and launchers, and IAI then booked a $3.1B follow-on contract. IAI expects the programme to exceed $6.5B, while the Times of Israel put the total at about $8B. The money goes to state-owned Israel Aerospace Industries. Arrow 3's sales pitch rests on its record against Iranian missiles in the June 2025 and 2026 wars. Germany signed while Nicaragua was suing it at the ICJ over its support for Israel; hearings on Germany's preliminary objections were held in September 2026.
● confirmed by a primary document · ○ reported
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
The USA was the largest supplier to Israel in 2021–25 (accounting for 68 per cent of Israeli arms imports), followed by Germany (31 per cent).
The Israeli Defense Ministryd ... $3.5 billion; IAI chairman Boaz Levy said the complete deal would reach approximately €4 billion. (fetch-tool paraphrase of article wording)
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