Iron Dome Component Production Deal Signed in Germany Despite Qatar's Veto

The German state of Lower Saxony, Israeli defense company Rafael, and the Israeli fund Aurelius Capital have signed a joint declaration of intent to establish a strategic partnership. This partnership will transform the Volkswagen factory in Osnabrück, Germany, into a center for producing defense components, notably for Israel's Iron Dome missile defense system.

The agreement followed months of behind-the-scenes drama. In July, the German newspaper Bild reported that the Qatari sovereign wealth fund, which holds approximately 10.4% of Volkswagen's shares, had vetoed the deal due to Rafael's Israeli origin. To circumvent this Qatari objection, the government of Lower Saxony will invest around 200 million euros and take direct control of parts of the factory. This maneuver ensures the agreement is made directly with the local government, bypassing Volkswagen itself and thus avoiding the Qatari veto.

The deal aims to secure the production of crucial defense elements, underscoring international cooperation in advanced defense technology.