Israel MOD and IAI Sign Major Deal to Expand Procurement of Arrow-3 Interceptors

The Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir, signed a production contract today (Wednesday) to expand the serial production of Arrow-3 interceptors.

Under the agreement, led by the Israel Missile Defense Organisation (IMDO) within the Ministry’s Directorate of Defense Research & Development (DDR&D), Israel Aerospace Industries (IAI) will supply the IDF with a significant number of Arrow-3 interceptors. The deal is valued at billions of shekels.
The signing ceremony, held at the Ministry’s headquarters in Tel Aviv, was attended by the Head of the DDR&D, Brig. Gen. (Ret.) Dr. Daniel Gold; CEO of IAI, Boaz Levy; Director of the IMDO, Moshe Patel; the Ministry’s Head of Finance Department, CPA Dekel Cohen; and other senior officials.

The Arrow system, which includes the Arrow-2 and Arrow-3 interceptors, was jointly developed by the Israel and the United States governments to counter long-range ballistic missile threats. During the current war, the Arrow system successfully intercepted numerous threats with exceptionally high success rates, demonstrating unprecedented performance on a global scale against Iranian missile attacks both on April 14, 2024, and October 1, 2024.

The Arrow system incorporates groundbreaking technology and is considered one of the most advanced defense systems in the world. IAI is the prime contractor for developing the Arrow system and its interceptors through its MLM Division in partnership with the U.S. company Stark Aerospace. IAI’s ELTA Division and TAMAM Division, along with Elbit Systems, Tomer, and Rafael, also contribute to the system’s production.

The IMDO within the Ministry’s DDR&D continues to lead the development and production of Israel’s multi-layered air defense systems, which include the Arrow, David’s Sling, and Iron Dome systems. It also strengthens international partnerships in missile defense and supports Israel’s defense industries.

Israeli Minister of Defense, Israel Katz: "I welcome the signing of the massive deal to expand the procurement of 'Arrow 3' interceptors, worth billions of shekels. This deal emphasizes the Ministry's leadership's importance and IAI's significant role, which leads the development and production of the 'Arrow 3' system. Israel has the best aerial defense capabilities in the world. The Arrow 3 system, which proved its operational superiority during the war against Iran's missile attacks and the Houthi terrorist organization's missile launches, is not just a critical defense layer against missile threats - but also a symbol of the Israeli industry's groundbreaking capabilities. The Israel Ministry of Defense will continue to lead global innovation while strengthening Israel's national security and technological independence. Well done to all those involved in this work. Am Israel Chai!"
Director General of the Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir: "The Arrow 3 system, which at the beginning of the war performed its first-ever operational interception in space, has since intercepted many complex threats with very high success rates. Arrow 3 served as the central defense layer in stopping missile attacks on Israel. With today's signing of the deal, we express confidence in Israeli technology and the Israeli defense industry. We will continue to ensure the defense array is prepared for evolving challenges. The deal will inject billions of shekels into the Israeli industry, support thousands of households, and strengthen local production independence."

Head of DDR&D, Brig. Gen. (Ret.) Dr. Daniel Gold: "During the war, the Arrow system proved a critical component in Israel's aerial defense array, performed the first operational exo-atmospheric interception in history, and dealt for the first time with extensive ballistic barrages. The system, developed over recent decades at the DDR&D, reflects the cutting edge of Israeli technology and the qualitative advantage of the defense establishment. The signing of the deal to expand Arrow 3 interceptor procurement strengthens the aerial defense array, boosts the Israeli economy, and preserves Israel's technological advantage."
CEO of IAI, Boaz Levy: "The Arrow system is tangible evidence of Israel's technological strength and the strategic cooperation with our partners in the USA. This unique interception system is designed to deal with long-range ballistic threats at exceptional altitude and precision, using breakthrough technologies that position it as one of the most advanced defense systems in the world.

During the war, the system stood at the forefront of Israel's aerial defense, achieving unprecedented success rates, which proved the ingenuity and dedication of the engineers and professionals at Israel Aerospace Industries. The current procurement will strengthen Israel's defense capabilities and allow us to continue improving the system's performance, deal with future threats, and ensure a significant advantage over our enemies. Israel Aerospace Industries is proud to lead the development and production of the system with an uncompromising commitment to Israel's security and strengthening its technological independence. We will continue to work to enhance the system and maintain Israel's position as a global power in missile defense."