£6bn BAE Typhoon deal hits the rocks

A multi-billion pound deal backed by the Government to sell Typhoon jets to the United Arab Emirates (UAE) has collapsed, defence contractor BAE Systems has said. Prime Minister David Cameron pressed the case for the deal for 60 jets during a recent visit to the Middle East.

A deal to sell Typhoon jets to the United Arab Emirates has collapsed
A deal to sell Typhoon jets to the United Arab Emirates has collapsed

It was reported to be worth around £6 billion and have the potential to support thousands of jobs.

But a thawing in relations between the Gulf states and Iran, their regional rival, is thought to have blunted the appetite for military hardware.

BAE said in a statement: “BAE Systems and the UK Government have been in discussions with the Government of the United Arab Emirates regarding a range of defence and security capabilities including the potential supply of Typhoon aircraft.

“The UAE have advised that they have elected not to proceed with these proposals at this time.”

The group said that “significant effort” had been invested in drawing up the deal and warned it had “not built this prospect into its planning assumptions”.

BAE, which has a major land systems base in Telford unconnected to the aircraft, said it was still in negotiations with Saudi Arabia over a Typhoon deal.

The company added that while good progress had been made, a definitive agreement had yet to be reached for the sale.

Comments for: "£6bn BAE Typhoon deal hits the rocks"

Mrs Ivy Trellis

BAE should consider itself lucky. The UAE is broke! - Better to find out now than later. The French also have a foot in the door too - However, that really will be a great meeting of minds. Many UK Consultants and Contractors are still owed millions from the 2008/9 Financial Crisis. It is reassuring to note that BAE did not build the deal into its planning assumptions.

The UAE, Qatar, and Saudi Arabia have all earned themselves the dubious reputations of having 'Champagne Taste and Beer Brass!'

"But a thawing in relations between the Gulf states and Iran, their regional rival, is thought to have blunted the appetite for military hardware."

A bridge is even being planned over the Straits of Hormuz! - Possibly another UAE 'Folly Project!'