Israel already has its own famous Arrow interceptor to defend against intermediate-range ballistic missiles, or IRBMs, which is built by Israel Aerospace Industries and Boeing.

Israel also has the excellent Lockheed Martin Patriot Advanced Capability-3, or PAC-3 to intercept incoming ballistic missiles at lower altitudes. But the new programs are designed to defend the country against much more numerous missiles of far shorter range.

"Just over one year ago, Prime Minister Olmert and then Defense Minister Amir Peretz approved the Iron Dome and Magic Wand anti-missile systems. The latter is designed to defend against 40-250 kilometer-range -- 24 miles to 150 miles range -- missiles.

"When it is operational, it will protect Israeli citizens against missiles such as the Fajr and Zilzal. Iron Dome is designed to intercept 4-70 kilometer-range rockets such as the Qassam, Grad and Katyusha," the Israeli statement said.

The MFA said Olmert "was briefed by Rafael Chairman of the Board Maj.-Gen. (ret.) Ilan Biran and Rafael Director-General Maj.-Gen. (ret.) Yedidya Yaari regarding the development of the aforementioned systems, which are among the most advanced in the world."

"The prime minister also inspected the Stunner missile, which will be used in the Magic Wand system, and the missile that will be used in the Iron Dome system. The (Israeli) Defense Ministry has requested that the Iron Dome system be prepared for deployment as soon as possible. It is currently due to be operational by early 2010, when it will be deployed in the south of the country," the MFA said.

However, the statement also noted, "The Rafael directors emphasized that no system currently in use, including those incorporating lasers, are able to provide a solution to Qassams."

Qassams are extremely short range and inculcate rockets assembled in Gaza, which is controlled by Hamas, the Islamic Resistance Movement, and which Hamas uses to continually bombard the Israeli town of Sderot, just across the border within Israel itself.

"Prime Minister Olmert asked the Rafael directors to make every effort to accelerate the development of the Iron Dome system, which will be used -- first and foremost -- to protect residents of the south against Qassam rockets from the Gaza Strip," the statement said.

"My government was the first to decide on the development and deployment of defensive systems against the short-range missiles that threaten the Israeli home front.

"I am proud of the ability of our defense industries to respond to the challenge set by the government. I ask you to develop the Iron Dome system as quickly as possible and to provide us the possibility of deploying as many Iron Dome systems as possible," Olmert said.

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