Israel Readies Next-Generation Arrow Interceptors for Future Missile Defense

Israel is pushing its top ballistic-missile shield into a new generation, with Arrow 4 nearing serial production capability. Moshe Patel, director and general manager of the Israeli Missile Defense Organization, told Business Insider that Arrow 4 is in a “very, very advanced stage of development” and that the process toward serial production has begun, though he did not give dates.

Serial production means a repeatable manufacturing process rather than one-off prototypes or test articles. Arrow 4 is described as the successor to Arrow 2, a modernized interceptor equipped with artificial intelligence technology and planned for production in Israel and the US.

Arrow is a surface-to-air missile system designed for ballistic missile defense and jointly produced by Israel Aerospace Industries and Boeing. It forms the top layer of Israel’s air defense network and has been used extensively over the past three years, primarily in four rounds of fighting with Iran.

Two Arrow interceptors are currently in service: Arrow 2, deployed in 2000, can intercept missiles in the upper atmosphere, while Arrow 3, operational since 2017, can engage them in space. Israeli officials told Business Insider the system shot down at least 90% of the ballistic missiles it engaged during the two most recent clashes, in June 2025 and earlier this year.

Israel is also developing Arrow 5, which Patel said will incorporate AI algorithms and capabilities. The project emerged from Israel Aerospace Industries’ own research and development work, but Israel plans to invest in it from its own budget while sharing related information with the US.

Patel said Israel is still discussing specifics with the US Missile Defense Agency and intends to move toward full-scale development. Arrow 5 is not necessarily meant to replace Arrow 3; the stated goal is to add another defensive layer for future fights.

The Arrow upgrades come as countries in the Middle East and Europe focus more heavily on air defense, including high-end missile defense systems and their interceptors. Germany is the only foreign buyer of Arrow systems so far, according to the article.

Patel said Israel has received significant interest from others as European nations seek to bolster ballistic missile defenses after years of Russian attacks against Ukraine. The key takeaway: Israel is positioning Arrow 4 and Arrow 5 as future-ready upgrades to a combat-tested defense architecture.