Qatar in Deal to Buy 24 Jet Fighters From Britain -- WSJ
18 September 2017 - 5:02PM
Dow Jones News
By Robert Wall in London and Nicolas Parasie in Dubai
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (September 18, 2017).
The Qatari and British governments have signed an agreement for
the potential sale of 24 Eurofighter Typhoon combat jets worth
several billion dollars in another move by Doha to bolster its
military amid a spat with four of its Arab neighbors.
The deal is also a boost for plane maker BAE Systems PLC, which
is seeking to keep Typhoon fighter plane production humming.
British Defense Minister Michael Fallon signed an agreement with
his Qatari counterpart for the planes on Sunday. Mr. Fallon said
this was the first major defense contract with Qatar and took years
to arrange.
The deal for military planes from the U.K. comes amid a
monthslong regional diplomatic spat between Qatar and a Saudi
Arabia-led bloc, in which Doha has sought to cement its
international ties and burnish its military credentials. Some of
the moves, however, have added to the strain.
Qatar, which has been among the biggest buyers of military
hardware in the Middle East, said the deal would bolster its
ability to fight terrorism.
The tiny but gas-rich Gulf state earlier this year signed a deal
to buy 72 F-15 combat aircraft from Boeing Co. in a deal valued at
$12 billion. The Middle East country a year ago agreed to buy
France's Rafale combat jet, made by Dassault Aviation.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt broke
off diplomatic relations with Qatar in June, accusing their
neighbor of supporting terrorism and meddling in their internal
affairs, charges Doha denies. The diplomatic standoff in the Gulf
pits several U.S. partners against one another.
Doha is home to a U.S. military base that holds 10,000 troops,
which the country's emir, Tamim bin Hamad Al Thani, visited on
September 11. There is also a sizable Turkish military presence in
Qatar.
Diplomatic efforts, including a bid by U.S. President Donald
Trump to end the crisis, have so far failed to break the stalemate
between Qatar and the Saudi-led bloc.
The U.K. has remained on the sidelines of the regional spat.
Prime Minister Theresa May early on in the crisis urged all sides
to defuse tension and to preserve unity in the Gulf.
For BAE Systems, the deal comes at an important time. Officials
said this year that the company may have to cease production of the
Eurofighter Typhoon combat jets in 2019 absent additional export
orders. BAE, Europe's largest arms maker by sales, builds the plane
in conjunction with Airbus SE and Leonardo SpA.
Even if the Qatar deal is concluded quickly, final assembly may
be idled temporarily because of the time it takes to purchase some
parts that can have a two-year order lead time. The value of the
potential deal, which likely would include training and support,
wasn't disclosed.
BAE Systems said Sunday it welcomed the announcement but
wouldn't comment further amid ongoing talks.
The Middle East has been one of the rare bright spots for
exports of the Typhoon, which has struggled to win orders in other
regions. Saudi Arabia has acquired 48 of the planes and may take
more. Oman and Kuwait also are customers for the twin-engine combat
plane.
Regional tension with Iran and the fight against Islamic State
have kept an appetite among Middle East countries for the newest
defense equipment despite the sharp drop in oil prices since the
middle of 2014. Saudi Arabia in May announced $110 billion in arms
deals with the U.S., though several of those agreements had been
previously disclosed.
Write to Robert Wall at robert.wall@wsj.com and Nicolas Parasie
at nicolas.parasie@wsj.com
(END) Dow Jones Newswires
September 18, 2017 02:47 ET (06:47 GMT)
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