Germany Receives First Arrow-3 System in Israel’s Largest-Ever Defense Export Deal

Germany received its first operational Arrow-3 missile-defense system on Wednesday in a formal handover ceremony at a German Air Force base near Berlin. The transfer marks a major stage in the implementation of the $3.5-billion agreement between the two countries, and the largest defense export deal in Israel’s history.

The Arrow-3 gives Germany, for the first time, a capability to intercept ballistic missiles outside the atmosphere. The deployment reflects Germany’s rapid military rebuilding following Russia’s invasion of Ukraine and signals a deepening strategic partnership with Israel as Berlin seeks advanced defenses against long-range threats.

Germany first expressed interest in acquiring the Arrow-3 system in 2019, but the process was frozen during the COVID pandemic. Russia’s invasion of Ukraine pushed Germany to rapidly rebuild its military, prompting Chancellor Olaf Scholz to launch a major wave of defense spending and purchasing, pushing Germany to finalize the deal which required U.S. approval, because the system is jointly developed by the Israeli Defense Ministry’s Homa Directorate and the U.S. Missile Defense Agency. The American authorization arrived last summer, clearing the way for the agreement. German officials quickly advanced an initial €600-million production batch, enabling the first system to be prepared for delivery this year, more than two years after the original signing.

Arrow-3, Israel’s highest-tier air-defense system, is designed to intercept ballistic missiles in space, before they reenter the atmosphere, with hundreds of successful interceptions during wartime. The first Arrow-3 battery will now move into German service. Berlin plans to deploy it at Holzdorf Air Base, located several dozen kilometers south of the city, and will serve as the country’s first line of defense against potential long-range missile threats from the east. The deployment makes Germany the first country in the world other than Israel to operate the Arrow-3.

A senior Israeli delegation attended the ceremony, led by Defense Ministry Director General Amir Baram. Ambassador Ron Prosor, Homa Directorate chief Moshe Fattal, former Homa head Dr. Danny Gold, and other senior officials also joined the event.

Baram said the moment carried historical weight. “A system developed by Jewish minds in Israel will now help defend Germany — this is only the beginning of our cooperation,” he declared at the ceremony. He also welcomed Germany’s decision to lift certain arms-component restrictions on Israel, saying that “such an embargo should never have been imposed on an ally fighting murderous Islamist terrorism.”

Ambassador Ron Prosor highlighted the symbolic significance of the milestone for relations between the two countries. “Eighty years after Auschwitz, Israeli technology is helping defend Germany and all of Europe,” he said, noting that his own family fled Germany on the eve of the Holocaust.

Dr. Danny Gold emphasized that the Arrow system had protected Israel “with very high success rates” over the past two years and said Israel was now sharing that proven capability with Germany. Moshe Fattal, head of the Homa Directorate, described the delivery as transformative for German defense strategy, saying it represented “a revolution in Germany’s air-defense concept” and offered a reliable, tested shield against ballistic missiles.

The handover coincides with the 60th anniversary of diplomatic relations between Israel and Germany, underscoring the strategic alliance that has grown between the countries in recent decades. Senior officials from both governments said the Arrow-3 transfer marks the start of an even broader partnership, with additional cooperation expected across air, land, and space defense domains.