UAE Backs Out of Typhoon Discussions
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BAE said in a statement Thursday that the Arabian Gulf state had informed the company it would not proceed with talks on a range of defense and security capabilities, including the Eurofighter Typhoon.
No reason for the scrapping of the talks has been given, but UAE sources said it was connected with easing of tensions in the Arabian Gulf region.
The British company has been leading talks for the Eurofighter consortium on a possible sale of the Typhoon to the UAE in competition with the Dassault Rafale and the Boeing F/A-18.
“BAE and the UK government have been in discussion with the UAE government regarding a range of defense 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 company said in a statement.
“At this point in time there is no need to acquire the weapons as our diplomatic efforts have succeeded,” the source said.
One industry source said the two sides had been unable to agree on price or close the gap on other aspects of the negotiations, including the industrial collaboration package.
In addition to the fighter talks, a defense agreement expected to be penned between the UK and the UAE has been put on hold regarding the UK assisting the UAE in marketing defense equipment to Europe, the source added.
The potential sale to UAE was a key export campaign in the Eurofighter consortium effort in the Middle East and elsewhere in an effort to keep production lines open beyond 2018.
Eurofighter partners include BAE, EADS and Finmeccanica.
The UAE originally preferred the Rafale but opened up the bidding to Typhoon and the F/A-18 after the two sides fell out over a range of issues.
In recent months, the Typhoon was reckoned to be ahead of its rivals in the bidding.
The Typhoon sales effort was part of a wider push by the British to boost defense relations with the UAE. The two sides have been negotiating a defense treaty, industrial collaboration and other investment opportunities.
The British Ministry of Defence declined to comment.
One of the potential industrial collaboration projects involving BAE and UAE industry involved development of a medium-altitude, long-endurance unmanned aerial vehicle.
British Prime Minister David Cameron and Defence Secretary Philip Hammond attended the Dubai Airshow last month for talks on the defense and industrial package.
Saudi Arabia has purchased 72 Typhoons. Some 28 of those jets have already been delivered, with a further six scheduled to be handed over by the end of the year.
The British defense contractor said good progress has been made, but a definitive agreement has yet to be reached.
The company said Saudi Arabia remains a valued customer and agreements had concluded this month for the supply of guided missiles and Tornado maintenance and upgrade together worth £1.5 billion (US $2.4 billion).
The UAE has also been looking at acquiring more Lockheed Martin F-16 Block 60 fighters to boost its existing fleet. A possible new fighter deal involving 25 aircraft was revealed by US Defense Secretary Chuck Hagel during a visit in April to conclude a major arms deal involving standoff missiles. [via]
