Britain signs Saudi Eurofighter order
Britain has signed a multi-billion-pound preliminary order from Saudi Arabia for 48 Eurofighter Typhoon fighter jets, military equipment maker BAE Systems said on Friday.
The lucrative deal was unveiled on the third and final day of Saudi Crown Prince Mohammed bin Salman's visit to Britain.
BAE Systems added in a statement that the order would help Riyadh modernise its armed forces under the kingdom's 'Vision 2030' economic plan, while no financial details were given.
Eurofighter was developed by a European consortium that also comprises Italy's Finmeccanica and Franco-German civilian planemaker Airbus.
"The UK Government has signed a Memorandum of Intent with the Kingdom of Saudi Arabia to aim to finalise discussions for the purchase of 48 Typhoon Aircraft," BAE Systems said in a brief statement to the London Stock Exchange.
'This is a positive step towards agreeing a contract for our valued partner. We are committed to supporting the Kingdom as it modernises the Saudi Armed Forces and develops key industrial capabilities critical to the delivery of Vision 2030.'
The news comes after Qatar inked a deal late last year to buy 24 Typhoon jets for some $8.0 billion.
Friday's blockbuster announcement follows long-running discussions with Saudi Arabia, which already has a total of 72 Eurofighter Typhoon planes in its fleet.
The news also comes just two weeks after BAE posted sliding annual net profits -- but forecast improving defence budgets across its major markets.
Late last year, however, BAE said it planned to axe 2,000 jobs, and had partky blamed weaker demand for Hawk and Eurofighter Typhoon fighter jets.
In reaction, BAE's share price jumped 2.24 percent to 602.20 pence in late afternoon deals on London's benchmark FTSE 100 index, which traded 0.2 percent higher.
The deal confirmation followed intense speculation over the large aircraft order, which has been under discussion for many years according to media reports.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.