Britain’s giant weapons manufacturer BAE Systems would gain hundreds of millions of dollars in profits from the revision of a contract for Eurofighter jets sold to Saudi Arabia.
BAE Systems said the change centers on upgrading the capabilities of the final batch of 48 Typhoon aircraft to be built for the kingdom under a $7.21 billion contract signed in 2007, British media reported.
This includes the addition of new missile and radar technology to the final Typhoons included in the agreement. The first squadron of 24 jets has been delivered to the Saudi air force.
Negotiations for other contract changes are under way, including having BAE establish a maintenance facility for the jets in Saudi Arabia.
A Saudi decree finalized in December authorized the release of $2.4 billion for advanced technology over and above the terms of the 2007 Typhoon contract. Some defense sources say Riyadh might increase its Typhoon order by another 48 aircraft.
"Oil exporting states made up nearly 75 percent of total regional defense expenditure and in 2011 their collective spending rose to $95.57 billion from $87.97 billion, a nominal increase of 8.6 percent," said the reports.
Within the Middle East region, Saudi Arabia remains the leading weapons buyer, spending a total of $45.17 billion on arms in 2010, ahead of the United Arab Emirates with $16.057 billion and Israel with $14.043 billion.
Middle Eastern demand for arms is a lifesaver for Western contractors grappling with shrinking defense budgets.
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