Israeli plans to develop a three tier missile defense shield, including short, intermediate, and long range defenses, will include the Arrow-3 interceptor system, representing a significant technological improvement over the Arrow-2.

Arrow-3, whose U.S. funding was approved in May 2009, is planned to reach altitudes of 100 km, and as such will significantly increase the defensive range of Israel.  With the achievement of such altitudes, essentially in space, the warning time available in the face of a missile attack is increased and the possibility of collateral damage from the destruction of the enemy missile is far less.