The Arrow Missile Defense Program
The Arrow Missile Defense Program, joint funded by America and Israel, is perhaps the most advanced in the world. The missiles capability is amazing. It can reach 30 miles up in the atmosphere going at a roaring 3500 meters per second, that's 9 times the speed of sound.
Unlike the American made Patriot missile system, the Arrow is a total Israel made system with American support money out of the Defense budget of the United States. Since 1988 the USA has provided Israel with over $628,000,000 US dollars for the research, While Israel has put out the rest of the approximate 1.6 Billion dollar program.  
The idea of a nationwide missile defense system for Israel started with President Ronald Reagan's, "Star Wars" Strategic Defense Initiative. There was debate over it that was settled in the Gulf War when Patriot Systems failed to shoot down 39 Iraqi Scud missiles that landed in Israel.
Rather than destroying oncoming missiles by a direct contact hit, which is sometimes ineffective due to the speeds of the missiles, the Arrow system self destructs with an explosive charge built into it destroying both missiles.
Here is what will happen:

1. US Spy Sattelites will sense the heat from the plumes of fire at the enemy launch site.

2. This information will immediatley be sent to Israel

3. Green Pine Radar will locate the missile in flight, from elevation, direction, and angle they will determine a probable launch site.

4. Within minutes IAF aircraft will be head towards the target to destroy mobile launchers before they can move.

5. An "Arrow" will be fired to intercept the missile before it reaches home territory, and by manual or automatic control. A second Arrow will be ready if it fails.

6. The Arrow will near its target high in the atmosphere and when it is close, it will blow up, the force of the bomb inside will destroy both bombs.

7. Backup Patriot Systems will be ready for closer range defense.
How will it work?