Iron Dome has gotten most of the media coverage for the last decade, but the Arrow is the top tier of Israel's missile shield.
The deal is worth approximately $4 billion and includes a wide variety of technological infrastructure.
During the joint exercise, the Israeli side activated all of the multi-layered defense systems that Israel uses.
Gallant told German counterpart Pistorius that the deal had "great significance for Israel and Germany from security, economic, and not least, symbolic perspectives."
Israel for many years has bought weapons from Germany, and this is not the first sale of weapons there, but the price tag and sophistication of the defense system put it in a different league.
With Israel's sale of Arrow 3 to Germany and David's sling to Finland, the country's defense industry continues to boom.
The Arrow 3 Missile defense system is designed to intercept exo-atmospheric ballistic missiles.
There was no error in Israel’s air defense systems and so there will be no probe into why the missile was allowed to travel over 180 km from the Syrian border.
Israel’s Ambassador to Germany, Ron Prosor, sees Israel-German ties as the number two strategic relationship that Israel has after the US.
DIPLOMATIC AFFAIRS: The connection created by this sale is something that Israel wants to promote around the world, not only in Europe.
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