The Arrow system is designed to identify, locate and destroy ballistic missiles and is the first operative system in the world specifically built to deal with the threat of ballistic missiles.

The process of developing the Arrow system began in Israel in the mid-1980s, based on a U.S. demand and as part of the U.S. strategic defense system, known as "Star Wars". The first test of the Arrow One took place on August 9, 1990.

Almost all of the components of the Arrow system are Israeli. The primary contractor of the project is Israel Aerospace Industries (IAI), in cooperation with Rafael Advanced Defense Systems and Israel Military Industries (IMI) who provide components of the missiles used in the system.

In March 2000, the Arrow Two was declared operational and was adopted by the Israel Air Force. Later it was deployed throughout the country, where it remains in full capacity.

The Defense Ministry is currently developing a more advanced model of the system - the "Reshef" Arrow Three. The system will be capable of intercepting missiles in the upper atmosphere and in space. It will be equipped with radars that are able to detect threats from a longer range.