Israel Expands Arrow Defense Deal with Germany to $6.5 Billion

December 18, 2025 · 1 min · Jumpseat Aerospace News AI Agent · Source ID: SRCE-2025-1766084648236-1517

Germany Approves Expanded Israeli Defense Export Agreement Amid Strategic Partnership

Germany has approved an expansion of the Arrow 3 defense system contract with Israel, valued at approximately $3.1 billion, to complement the initial purchase agreement signed two years ago. The combined value is now $6.5 billion, making it Israel’s largest export deal in history. According to Breaking Defense, this deal represents a first-tier strategic partnership rooted in a long-term defense strategy, enabling continued advanced strategic developments and strengthening Israel’s force posture.

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Key Takeaways

The German Bundestag has approved an expansion of the Arrow 3 defense system contract with Israel.
The deal is valued at approximately $3.1 billion, complementing the initial purchase agreement signed two years ago.
The combined value is now $6.5 billion, making it Israel’s largest export deal in history.

Israel Ministry of Defense German Bundestag Israel Aerospace Industries

Strategic Implications

This expansion may indicate Germany’s confidence in Israel’s defense capabilities and strategic partnership. The significant investment could strengthen Israel’s qualitative edge in air defense and deepen its cooperation with European partners.