Israel and Greece Sign $3.5 Billion Defense Deal for Multilayered Air Defense System

Athens (Terror Monitor) — Israel and Greece have signed a defense agreement worth approximately $3.5 billion, described as the largest defense and arms deal between the two countries to date.

According to Israel’s Ministry of Defense, the three-billion-euro agreement will see Israel develop a sophisticated multilayered air defense system for Greece capable of countering a range of threats, including ballistic missiles, drones and other aerial threats.

The system, known as the Achilles Shield, will incorporate several Israeli-developed defense systems, including David’s Sling, SPYDER, Barak MX and Multi-Mission Radars (MMR).

Israel’s Defense Ministry said the system is designed to strengthen Greece’s ability to defend against different types of aerial and missile threats.

Israeli Defense Minister Israel Katz said Israel and Greece share strategic interests and face similar security challenges in the region.

David’s Sling and Advanced Air Defense Systems

David’s Sling is one of Israel’s key air defense systems and is designed to intercept medium- to long-range missiles and other aerial threats.

The system played a role in intercepting Iranian missiles during this year’s conflict with Iran.

Greece will become the second country to acquire the David’s Sling system, after Finland previously agreed to purchase it.

The agreement will also provide Greece with advanced air defense systems and radar technology developed by Israeli defense companies, including Israel Aerospace Industries (IAI) and others.

Under a separate agreement worth approximately 26–30 million euros/dollars, Israeli defense company Rafael will provide Greece with its Drone Dome counter-drone system.

The system is designed to protect critical facilities and strategic infrastructure from drone attacks.

The agreements also include the sharing of defense technology and expertise, training, and increased cooperation with Greece’s defense industry.

Greece’s Military Modernization Plans

Greece has been pursuing an extensive program to modernize its armed forces. Athens has long-standing disputes with neighboring NATO ally Turkey over maritime boundaries and other issues in the eastern Mediterranean.

Greece spends approximately 3.5 percent of its gross domestic product on defense, a higher proportion than many other NATO members.

Athens plans to spend approximately 28 billion euros through 2036 to modernize its defense capabilities.

The program includes advanced air defense, ballistic missile defense and counter-drone systems, as well as the acquisition of new fighter aircraft and warships.

Greece is also planning to acquire up to 40 F-35 fighter jets from the United States and warships from France and Italy.

Growing Israel-Greece Defense Cooperation

Defense and military cooperation between Israel and Greece has expanded significantly over the past decade.

Previously, Greece signed a deal worth approximately $1.65 billion with Israeli defense company Elbit Systems to establish an advanced air force training center.

The two countries have also concluded agreements covering rocket launchers, anti-tank missiles, drones and other defense technologies.

Greek Defense Minister Nikos Dendias said after signing the latest agreement that modern conflicts had fundamentally changed traditional concepts of defense and military deterrence.

He said technology, ballistic missiles, satellite communications, unmanned systems, cyber threats and hybrid warfare had transformed traditional defense doctrines.

Record Growth in Israeli Defense Exports

The agreement comes as Israel’s defense industry is experiencing record export levels.

According to Israeli government figures, the country’s defense exports exceeded $19 billion last year, representing an increase of approximately 30 percent compared with 2024.

Experts say the interest of several countries in Israeli defense technology is partly driven by the fact that Israeli-made weapons and air defense systems have been used in real-world combat situations, allowing potential buyers to assess their performance.

Israel Becomes World’s Seventh-Largest Arms Supplier

According to a report released this year by the Stockholm International Peace Research Institute (SIPRI), Israel overtook the United Kingdom to become the world’s seventh-largest arms supplier.

More than half of Israel’s overall defense exports consist of missiles, rockets and air defense systems, according to the report.

The new agreement is expected to further strengthen the defense partnership between Israel and Greece while significantly expanding Greece’s capabilities against growing missile, drone and other aerial threats in the region.