Rafael Advanced Defence Systems said development of the system was advanced enough for the company to be comfortable with publicising it at this week's Singapore Airshow, which is Asia's largest aerospace and defence exhibition.
The laser technology behind the missile shield called Iron Beam is not that far removed from fiction.
"It's exactly like what you see in Star Wars," said company spokesman Amit Zimmer. "You see the lasers go up so quickly like a flash and the target is finished."
Iron Dome batteries have shot down hundreds of rockets launched by Hamas militants from the Gaza Strip at Israeli cities. With no peace deal in sight and also threatened by Hezbollah in Lebanon, Israel wants to beef up that system and develop further protection.
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Rafael Advanced Defence Systems said test data show Iron Beam lasers are blasting away more than 90 percent of their targets. The new system can also be modified so that multiple lasers can be used to hit a target, according to the company.
"It's very accurate and will help avoid collateral damage," Zimmer said, adding "When you use lasers, you have an unlimited magazine."
Besides Iron Beam and Iron Dome, Israel is also developing the next phase of its Arrow system which can intercept missiles in space and the upcoming David's Sling, which shoots down short and mid-range ballistic missiles.
But some feel Israel, which gets significant funding from key ally the US for missile defence, is going overboard.
"The development of another layer says more about Israeli paranoia," he said. "The possibility of a conventional attack against Israel is next to nil and there is hardly a need for five layers of missile defence systems."
Rafael would not comment on how much Iron Beam costs or how much has been invested in it so far.
"It's very hard to say. We're still testing and it can be modified in many different ways," Zimmer said.