Saudi-UK’s US$8bn fighter aircraft deal close to completion

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Fighting talk: the deal will bolster Saudi Arabia’s military capability.

The Saudi Arabian defence force is on course to become one of the world's top three military powers with the signing of the controversial US$8bn Typhoon fighter aircraft deal this week, Arabian Business can reveal.

The document agreed upon by both the British and Saudi governments that details the terms of the supply of the aircraft, and initial support, was signed last week by British defence secretary Des Browne. Upon its immediate return to Saudi Arabia, the document will be signed by the Kingdom's defence minister, HRH Crown Prince Sultan bin Abdul Aziz. An official announcement is expected later this week.

"Following some serious camel trading we are now very close to having the right signatures on the Typhoon contract," said a source close to the deal. The agreement forms part of the Saudi-British Defence Cooperation Project (SBDCP), previously known as Al Yamamah.

In addition to the supply of Typhoon aircraft the SBDCP also covers the upgrading of Saudi Arabia's Tornado aircraft and the provision of advanced weapons systems. This will make the Saudi defence force's capability equal to that of the British armed forces in terms of hardware and equipment, and potentially "second only to that of the US," according to our source. He added that the development marks "a coup for Saudi Arabia" and is a "massive milestone" in the development of Saudi's armed forces. Much of the impetus behind Saudi Arabia's acquisition of new military equipment is accredited to the aggressive stance adopted by neighbouring Iran.

The ‘understanding document' between the British and Saudi Arabian governments underpinning the original Al Yamamah deal (‘dove' in English) was signed nearly two years ago in late 2005, however the project has been beset by serious problems since. Negative publicity in the British media has been rife. Much of this has centered on corruption allegations in which members of the Saudi Royal family were implicated.

The deal has been further complicated by the strain of commercial demands made by the Saudi government. According to our source it was "demanding a huge amount for their money". It has also asked that British Airways resume flights to Riyadh. These were terminated for business reasons in March 2005.

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