Israel has awarded a new production contract to Israel Aerospace Industries (IAI) for additional Arrow missile interceptors, a key component of its multi-layered air defense network. The Arrow system, co-developed with the US Missile Defense Agency, is designed to counter ballistic threats both inside and outside the Earth’s atmosphere, boasting a range of 2,400 kilometers (1,500 miles) and a ceiling exceeding 100 kilometers (62 miles).
The move follows the intensive deployment of the Arrow system during a recent 12-day military confrontation with Iran in June. Reports suggest that the prolonged aerial conflict significantly depleted Israel’s interceptor reserves, prompting urgent replenishment measures.
This contract also comes ahead of Israel’s announcement to increase its defense budget by 42 billion new Israeli shekels (approximately $12.5 billion) for the years 2025 and 2026. The boost in defense spending—bringing the annual total to around 110 billion shekels ($32.7 billion), or about 9% of the nation’s GDP—will support the accelerated acquisition of key military assets vital to national security.
