Israel Aerospace Industries Secures Major Contract to Enhance Arrow-3 Missile Defense System

The Israel Ministry of Defence (IMOD) and Israel Aerospace Industries (IAI) have finalized a groundbreaking contract worth billions of shekels to expand the production of Arrow-3 interceptors. This strategic move is set to strengthen Israel's missile defense capabilities in the face of escalating threats from long-range ballistic missiles and hypersonic weaponry. The signing ceremony, held at the Ministry’s headquarters in Tel Aviv, was attended by prominent defense officials, including Maj. Gen. (Res.) Eyal Zamir, Director General of IMOD, and Boaz Levy, CEO of IAI.

Arrow-3: A Technological Breakthrough in Missile Defense

The Arrow-3 interceptor is part of the Arrow Weapon System (AWS), the world’s first operational anti-tactical ballistic missile defense system. Co-developed by Israel and the United States, Arrow-3 is designed to provide unparalleled defense by intercepting ballistic missile threats both inside (endo-atmospheric) and outside (exo-atmospheric) the Earth’s atmosphere. This dual-layered interception capability makes it a critical safeguard against weapons of mass destruction, including nuclear and chemical payloads.

The system has earned global recognition for its exceptional performance, particularly during Israel's recent "Iron Swords" war (2023-2024). It successfully intercepted numerous ballistic missile threats, achieving high success rates and demonstrating its combat-proven reliability. Arrow-3 is a complementary layer to the Arrow-2 system, providing a robust multi-tiered missile defense network. While Arrow-2 is tailored for short- and medium-range threats, Arrow-3 extends protection against long-range, high-speed projectiles such as Shahab-3 and Scud missiles.

Advanced Technology and Industrial Collaboration

IAI leads the development and production of the Arrow system through its MLM Division, collaborating with key defense partners, including Elbit Systems, Rafael Advanced Defense Systems, and U.S.-based Stark Aerospace. The system’s radar technology is developed by IAI’s ELTA Division, while its advanced propulsion systems are supplied by Tomer. This partnership ensures that the Arrow system is equipped with state-of-the-art technologies, offering high operational efficiency and adaptability to emerging threats.

The enhanced Arrow-3 production capabilities align with Israel’s overarching multi-layered air defense strategy. This strategy also integrates the Iron Dome, designed for short-range rocket threats, and David’s Sling, which targets medium-range missiles. Together, these systems create a comprehensive protective shield against a diverse range of aerial threats.

International Collaboration and Strategic Importance

The Arrow-3 program highlights the strong defense partnership between Israel and the United States. U.S. funding has been instrumental in the development and production of the Arrow Weapon System, reflecting shared security interests in countering global missile proliferation. The expanded procurement also positions Israel as a global leader in missile defense technology, with the potential for export opportunities to allied nations facing similar threats.

Securing Israel’s Future

The newly signed Arrow-3 contract underscores Israel's commitment to proactively adapting its defense capabilities to the ever-changing landscape of missile threats. Boaz Levy, CEO of IAI, hailed the agreement as a pivotal milestone, stating, “This step reaffirms Israel’s leadership in advanced defense technologies and ensures the security of its skies and citizens.” Moshe Patel, Director of the Israel Missile Defense Organisation (IMDO), emphasized the importance of this multi-layered defense approach, which has become a cornerstone of Israel's national security strategy.

A Proactive Response to Evolving Threats

As missile technologies evolve globally, the Arrow-3 system represents a forward-thinking solution to address emerging challenges, including hypersonic threats. By expanding production and advancing its technological edge, Israel is not only safeguarding its national interests but also setting a benchmark in missile defense systems for the international community.