Israel’s Arrow 3 air defense system achieved its first operational interception by successfully downing a missile over the Red Sea, apparently launched from Yemen towards Eilat. This marks the first operational use and interception by the Arrow 3 missile, a significant advancement from the older Arrow 2 system, which had been used in previous interceptions.
  

Key Points: 

1. First Operational Use: The Arrow 3 system was used operationally for the first time to intercept a missile.
2. Interception Location and Target: The intercepted missile, believed to be launched from Yemen, was heading towards Eilat and was downed over the Red Sea.
3. Advancement Over Arrow 2: This incident demonstrates a technological leap from the Arrow 2 system, which had been employed in earlier interceptions.
4. Deployment and Capabilities: The Arrow 3 system, deployed since 2017, is designed to destroy ballistic missiles outside of the Earth’s atmosphere.

Source: https://www.timesofisrael.com/liveblog_entry/israels-arrow-3-has-made-its-1st-ever-interception-downing-likely-yemen-fired-missile/