Israel has signed a new agreement with Israel Aerospace Industries to produce more Arrow interceptors, following their extensive use during a 12-day conflict with Iran in June that reportedly depleted the nation’s missile stockpile. The Arrow, a long-range exo- and endo-atmospheric anti-ballistic missile developed with the US Missile Defense Agency, has a 2,400-kilometer range and operates above 100 kilometers in altitude. The contract comes ahead of Israel’s plan to boost defense spending by 42 billion shekels ($12.5 billion) across 2025 and 2026. With an annual defense budget currently at 110 billion shekels ($32.7 billion), approximately 9% of GDP, the additional funding will accelerate acquisition of critical defense systems.
