JERUSALEM: Israeli defence exports hit an all-time high of $12.5 billion last year, with Arab countries that recently established ties accounting for nearly a quarter of purchase contracts, officials said on Wednesday.

The defence ministry, which oversees and approves the exports of Israel’s defence industries, said one quarter of deals were for drone systems, with “missiles, rockets and air defence systems” making up another 19 per cent.

Ministry figures show total exports have doubled over the past nine years.

A breakdown of the regions to which the goods are exported showed a leap among Abraham Accords countries from $853 million (nine per cent) in 2021 to $2.96 billion (24pc) in 2022.

The US-brokered Abraham Accords from 2020 saw Israel normalise ties with the United Arab Emirates, Bahrain and Morocco. The defence ministry would not provide further details.

“Global instability increases the demand for Israeli air defence systems, drones, UAVs (unmanned aerial vehicles) and missiles, and we continually work to preserve our capabilities and strengthen them,” defence ministry director general Eyal Zamir said in a statement.

German lawmakers on Wednesday approved an advance payment for the purchase of the sophisticated Arrow 3 air defence system from Israel for nearly four billion euros ($4.3 billion).

The budget committee in the lower house of parliament gave the green light for an initial payment of 560 million euros, a committee source said.

The long-range Arrow 3 system, designed to shoot down missiles above the Earth’s atmosphere, is powerful enough to offer protective cover for neighbouring European Union states.

The committee also approved around 950 million euros for the purchase of six German-made Iris-T SLM air defence systems, the source said.

The Arrow 3 system is expected to cost up to 3.99 billion euros in total, according to finance ministry documents.

The money will come from a landmark 100-billion-euro fund unveiled by Chancellor Olaf Scholz to bolster the country’s defences in the wake of Russia’s invasion of Ukraine.

If the deal goes ahead as planned, a contract will be signed by the end of 2023 and Berlin expects the Arrow 3 system to be delivered in the final quarter of 2025.

The 560 million euros are intended to set up manufacturing and production in Israel.

Committee member Karsten Klein, from the liberal FDP, said the release of the funds would help ensure Germany is “equipped with modern air defence systems”.

The Iris-T system had “already proven its reliability in Ukraine”, he said.

According to Israeli manufacturer IAI, the Arrow 3 system is able to intercept ballistic missiles fired from a distance of up to 2,400 kilometres (1,490 miles).

The system was first deployed in an Israeli air force base in 2017 and has been used to protect Israel against attacks from Iran and Syria.

The German government has led a push to bolster Nato’s air defences in Europe after seeing Russia’s relentless missile strikes on Ukraine, urging allies to buy deterrence systems together.

Berlin to buy air defence system

German lawmakers on Wednesday approved an advance payment for the purchase of Israel’s sophisticated Arrow 3 air defence system for nearly four billion euros ($4.3 bn).

The budget committee in the lower house of parliament gave the green light for an initial payment of 560 million euros, a committee source said.

The long-range Arrow 3 system, designed to shoot down missiles above the Earth’s atmosphere, is powerful enough to offer protective cover for neighbouring European Union states.

The committee also approved around 950m euros for the purchase of six German-made Iris-T SLM air defence systems, the source said.

The Arrow 3 system is expected to cost up to 3.99bn euros in total, according to finance ministry documents.

The money will come from a landmark 100bn euro fund unveiled by Chancellor Olaf Scholz to bolster the country’s defences in the wake of Russia’s invasion of Ukraine.

The announcement marked a major turnaround for Germany after years of under-investment in the armed forces.

If the deal goes ahead as planned, a contract will be signed by the end of this year and Berlin expects the Arrow 3 system to be delivered in the final quarter of 2025.

The 560m euros are intended to set up manufacturing and production in Israel.

2,400 kilometres

Scholz told a press conference earlier on Wednesday the investment was “a big project that doesn’t just relate to Germany itself”.

Asked if he thought there was any risk in making the initial payment, Scholz said things were “progressing bit by bit and we believe that everything will also be approved”.

According to a report in Tagesspiegel newspaper, the federal audit office had warned against releasing funds before initial construction work for the system had been completed in Germany.

Published in Dawn, June 15th, 2023