Israel has signed a new deal with Israel Aerospace Industries to deliver additional Arrow interceptors, a vital component of the nation’s multi-layered missile defense system.
The Arrow interceptor, produced in cooperation with the US Missile Defense Agency, is designed to engage ballistic threats both inside and outside the atmosphere. It boasts a strike range of 2,400 kilometers (1,500 miles) and can intercept targets flying above 100 kilometers (62 miles).
The missile system was heavily utilized during Israel’s 12-day confrontation with Iran in June, reportedly resulting in near depletion of available interceptor stocks. The defense contract was awarded just before Israel announced a 42 billion shekel ($12.5 billion) increase in military spending over 2025 and 2026.
Currently, the country allocates 110 billion shekels ($32.7 billion) annually to defense — approximately 9% of its GDP. The additional budget will support faster procurement of weapons and technologies critical to national defense.
