Israel signed a multi-billion-dollar contract with defense contractor Rafael Advanced Defense Systems to expand serial production of the Iron Dome missile defense system, the Defense Ministry announced on Thursday.
The funding comes from a USD 8.7 billion U.S. aid package approved by Congress in April 2024, with USD 5.2 billion specifically earmarked to strengthen Israel’s air defense systems.
The Iron Dome system, developed in Israel and manufactured in collaboration with the U.S. government, provides defense against short- and medium-range rocket and missile threats, as well as UAV threats. Throughout the recent war, the system has exhibited outstanding performance with remarkable interception rates, delivering crucial protection to Israel’s home front against missile, rocket, UAV, and cruise missile attacks. Featuring cutting-edge technologies, Iron Dome ranks among the world’s most sophisticated air defense systems. Rafael is the lead contractor for the system.
“The Iron Dome system has become one of the world’s finest air defense systems in history. Over the years, and particularly during recent military operations, Iron Dome has protected our nation’s skies and successfully intercepted thousands of threats from Gaza, Lebanon, and other theaters — serving as a protective shield for Israeli citizens,” Defense Minister Israel Katz said.
Stressing the U.S. partnership in Iron Dome’s research and development, Katz added, “Together, we will continue developing and enhancing the world’s most advanced air defense systems — ensuring the security of our state and Israel’s strategic superiority for decades to come.”
Iron Dome is the best-known system in Israel’s multi-tiered air defense network. Romania became the first European buyer of an Israeli Iron Dome with a EURO 2 billion (USD2.3 billion) deal signed in May.
Other layers include David’s Sling, designed to shoot down medium-range threats at high altitudes, and the C-Dome system, designed to protect naval assets from short-range threats. C-Dome made its first operational intercept in April 2024.
The Arrow-3 system, which is designed to intercept ballistic missiles, had its first operational success when it shot down a ballistic missile fired by Iran-backed Houthi rebels in Yemen in November 2023. It is widely believed to be the first time a missile was intercepted in outer space, though Israeli officials have not confirmed this.
Israel also became the first country to deploy a laser-based air defense system, the Iron Beam, which intercepted scores of active enemy threats in May.
International demand for Israel’s military technology has surged as European countries have increased their defense budgets in response to Russia’s war in Ukraine. Israel set a new all-time record for defense exports in 2024, with sales reaching USD 14.79 billion.
