Saudi Arabia looks at more Typhoons

Friday, June 19, 2009

Saudi Arabia is reportedly in talks to buy an additional 72 Eurofighters for £5bn.

The oil rich kingdom is already contracted to buy 72 of the aircraft, but as the first deliveries of that order begin to arrive, there is strong interest from Riyadh for more of the jets.

"The Saudis are interested in taking more Typhoons, probably about the same amount again, as long as this (current order) all goes well," an industry source reportedly told the Daily Mail.

"We are still negotiating some detail in the contract. I presume that it's just a question of a short time to finalise it. I hope, days."

The MoD has denied any knowledge of a second order. However any deal with the Saudis would rouse the MoD's interest. The ministry has admitted that it will not take the full delivery of Tranche 3b, consisting of 48 planes. An agreement last year within the Eurofighter consortium will allow buyers to sell on part of their order without financial penalties so the MoD could potentially include some or all of Tranche 3b in the new Saudi order.

The potential move by Saudi Arabia should come as no surprise. While other oil rich companies have invested their wealth in real estate and the corporate world, Saudi Arabia is keen to develop the strongest military in the Middle East. They are now BAE's third biggest customer behind Britain and the US.

Any Eurofighter order would continue to secure hundreds of jobs in the British economy at various BAE facilities around the country.