Israel delivers Arrow 3 to Germany, in largest defense export deal ever

Israel completed its record $4.6 billion defense export on December 3, 2025, handing over the Arrow 3 missile defense system to the German Air Force at Holzdorf Air Base, 120 km south of Berlin.

The transaction, signed in 2023, marks the first deployment of Arrow 3 outside Israel and the United States and the first time a foreign military will independently operate the exo-atmospheric interceptor. Additional German sites will follow the initial Holzdorf installation.

At the ceremony, Israeli Defense Ministry Director General Amir Baram stated:

“We Israelis, descendants of Holocaust survivors, want to see Germany strong and prosperous, proud and leading in Europe and throughout the world.”

The system, developed by Israel Aerospace Industries, intercepts ballistic missiles outside the atmosphere and has achieved an 86 percent success rate against Iranian and Houthi launches. Germany acquired Arrow 3 under the European Sky Shield Initiative to counter long-range threats following Russia’s invasion of Ukraine.

The handover underscores expanding Israel-Germany defense ties, including joint exercises, Germany’s recent lifting of an arms embargo on Israel, and prior delivery of Israel’s TROPHY active protection system for Leopard 2 tanks.

Israeli officials present included IAI CEO Boaz Levy and Missile Defense Organization head Moshe Patel. Israel’s ambassador to Germany, Ron Prosor, noted that this year marked 60 years of diplomatic relations between the countries.

“Our partnership is strategic, and Germany is Israel’s most important ally in Europe."