Israel to sign biggest-ever defense deal with Greece

The $3.6 billion deal set to be signed in Tel Aviv comes as Turkey is acting more aggressively to both Greece and Israel.

Ministry of Defense director general Gen. (res.) Amir Baram will today sign an historic agreement with Greece in Tel Aviv for the sale of three air defense systems for €3.1 billion ($3.6 billion). The deal will surpass the $3.5 billion paid by Germany for a single Arrow 3 long-range air defense system, not including a follow-on agreement for an additional system for $3.1 billion, which "Globes" revealed.

This unprecedented deal with Greece has been directly affected by the extraordinary tensions between Greece and Turkey, who have always had hostile relations, but currently even more so. The Greek military buildup, while drawing closer to Israel, a leading arms supplier on a global level, is leading the Erdogan regime to become more verbally aggressive, while taking actions on the ground..

A pair of Greek Air Force F-16s were scrambled last Friday to repel a Turkish drone operating in the area of the islands of Samothraki and Lemnos. These Greek islands, located in the heart of the Aegean Sea, are adjacent to Turkey and are causing a heated dispute between the countries, after about two weeks ago Turkey decided to issue a presidential decree to establish "national marine parks" on the islands. In other words, from a situation in which there are clear disputes between the parties over their maritime borders, Turkey is trying to impose facts on the ground.

Erdogan's radicalization

The Greeks are trying to be proactive themselves and are planning to establish a new drone base in Rhodes, which has prompted the Turkish Defense Ministry to respond to the move. The Turks say that establishing a drone base on an island close to Turkey "will violate the demilitarized status of the island and harm peace and stability in the Aegean Sea, as well as good neighborly relations."

On the same day that Turkey dispatched a drone to Samothrace and Lemnos, Turkey, which has the second largest army in NATO, also behaved aggressively towards Israel. Every Friday, Turkey's Religious Affairs Authority delivers a prepared sermon to mosques, a weekly event that has become a hot topic on social media following messages that appear to concern Israel. According to the sermon, the meaning of "love of the homeland," when necessary, is adherence to the prophetic commandment: "Make jihad with your hands, your tongues, and your property." At the end of the sermon, a verse from the Quran was stressed" "O you who believe, be patient; stand strong against the enemy; be ready and alert for jihad, and fear Allah, that you may succeed."

RELATED ARTICLES

Israeli strategy

At the same time, Turkish President Recep Tayyip Erdogan delivered a particularly anti-Semitic speech, even by his own standards. "The radical, occupying, genocidal ideology known as Zionism is not only aimed at the peace of its neighbors," Erdogan said. "It is also aimed at anyone who defends regional peace and humanitarian values."

The Israeli Foreign Ministry was quick to respond on Saturday night. "The anti-Semite Erdogan seeks, every few days, to reach new heights of wild incitement against the Jewish state in an effort to divert attention from his actions against his own people and outside the region. The statement added, "Erdogan has destroyed Turkish democracy, imprisoned his political opponents, hosts and supports the terrorist organization Hamas, and invades neighboring countries."

This aggression, which is added to the Iranian threat, largely reflects what was behind the speech of Ministry of Defense director general Eyal Baram at the Herzliya conference two months ago. Baram said, "There is identity of interests for the formation of a broader alliance - from India, through the UAE to Greece and Cyprus." In the past year, Baram has been promoting more vigorously the identification of countries with which Israel has unity on an ideological level, regional geopolitical interests and each has a profitable advantage for the other side.

In Europe, there is Germany, a power that is a close friend of Israel, but Greece is seen in the Israeli strategy as the gateway to Europe.

First and foremost, the deal with Greece includes the supply of David's Sling and Spyder air defense systems manufactured by Rafael and Barak MX manufactured by Israel Aerospace Industries, to be delivered within 35 months. Greek companies will be integrated into the project to undertake work worth €700 million (22.5% of the total agreement).

The Israeli strategy is also to expand production infrastructures both at home and abroad, as is also reflected in the negotiations that Baram is conducting with the US administration on the next memorandum of understanding for aid funds, which is due to begin in 2029.

The Greek case may also encourage European countries to turn to Israel, as a result of the policy of US President Donald Trump.

In Europe, some countries are increasingly realizing that they need to increase their independence, while reducing their dependence on the US, which for its part seeks to leave production infrastructures at home. When NATO members other than Turkey see how the working model with Israel operates, this may encourage them to turn to Israel to procure similar systems. Despite European criticism of Israel, some countries have extended strategic partnerships, for example Finland, which borders Russia.

In contrast to the interests it has with Greece, which focus on political and economic aspects, Israel is also able to find benefits for its own security. The strengthening of the Israeli partnership with Greece and Cyprus, especially in air defense, could eventually lead to the creation of shared air defense - the array of sensors, radars, and control centers that make it possible to see, identify, and track everything moving in the sky. Considering the nature of Turkish aggressive activity, this seems like a potentially major step for the countries.

Published by Globes, Israel business news - en.globes.co.il - on August 31, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.