Israel signs multi-billion deal to buy more Arrow-3 interceptors to counter Houthi threat

Defense Ministry purchased a new stock of Arrow-3 interceptors from the Israel Aerospace Industries to enhance protection against ballistic missile threats; Each interceptor costs approximately $4 million, and the move follows an uptick in missile attacks by the Houthis from Yemen

The Defense Ministry and Israel Aerospace Industries (IAI) signed a major production contract Wednesday to expand the supply of Arrow-3 missile defense interceptors for the Israeli military.
The deal, valued at billions of shekels, marks a significant boost to Israel’s air defense capabilities. The agreement, led by the Israel Missile Defense Organization (IMDO) within the Directorate of Defense Research and Development (DDR&D), will provide the IDF with a large number of Arrow-3 interceptors.
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שיגור של חץ 3 של התעשייה האווירית
שיגור של חץ 3 של התעשייה האווירית
Arrow 3 missile
(Photo: IAI)
The signing ceremony, held at the Defense Ministry headquarters in Tel Aviv, was attended by Maj. Gen. (Res.) Eyal Zamir, director general of the ministry; Brig. Gen. (Ret.) Dr. Daniel Gold, head of the DDR&D; IAI CEO Boaz Levy; and other senior officials.
The Arrow system, which includes the Arrow-2 and Arrow-3 interceptors, was jointly developed by Israel and the United States to counter long-range ballistic missile threats. During recent conflicts, the system demonstrated exceptional performance, intercepting ballistic missiles with high success rates.
The Arrow-3 achieved a historic milestone during the current war, becoming the first system to conduct an operational interception in space. It played a critical role in defending against missile barrages from Iran and the Houthi militia in Yemen, including on April 14, 2024 and October 1, 2024.
“The Arrow-3 system has proven to be an unparalleled defense asset,” Zamir said. “With this agreement, we reaffirm our commitment to Israeli innovation and the security of our nation.”
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(Photo: Defense Ministry/ Reuters)

Strengthening defense and economy

The Arrow-3 program is a cornerstone of Israel’s multi-layered missile defense strategy, which also includes David’s Sling and Iron Dome. IAI leads the system’s development through its MLM Division, with support from U.S. partner Stark Aerospace and Israeli firms such as Elbit Systems, Tomer and Rafael.
Zamir emphasized the dual benefits of the deal, noting that it would not only bolster national security but also inject billions into the local economy, supporting thousands of jobs.
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Boaz Levy, CEO of IAI, highlighted the technological achievements of the system. “The Arrow-3 is a testament to Israel’s innovative spirit and strategic cooperation with the U.S. It operates at exceptional altitudes with unmatched precision, reinforcing our defense capabilities and ensuring a technological edge over adversaries,” Levy said.
Defense Minister Israel Katz called the agreement a “strategic milestone,” adding: “This deal reflects the strength of Israel’s defense industry and the groundbreaking capabilities of the Arrow-3 system, which has set a global standard in missile defense.”
Gold praised the Arrow-3 as “the pinnacle of Israeli technology,” noting its role in countering extensive ballistic barrages during the war.
“This system is not just a technological marvel but a symbol of Israel’s resilience and strategic superiority,” Gold said.
The agreement underscores the Ministry of Defense’s commitment to advancing Israel’s defense infrastructure while supporting its technological independence, the ministry said in a statement. Officials say the deal will ensure the IDF remains prepared for emerging threats and maintains its qualitative edge on the battlefield.
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