UAE Continues Spending Spree

As the defense exhibition in Abu Dhabi winds down the UAE continues to announce arms deals. Reuters reports that the nation announced two deals today with more expected by the end of the week. In one contract Boeing was awarded a contract of about $85 million to provide aircraft parts and support. The other was to a joint effort by EADS, Thales and Lockheed Martin for $370 million worth of counter battery radars. Another deal with Sikorsky was also announced with no value to establish an aircraft maintenance and repair site. As we wrote earlier the UAE is heavily investing in Western arms as they upgrade their military.

UAE to Buy AMRAAM from Raytheon

Raytheon announced that they had signed a contract with the UAE to provide advanced AIM-120 AMRAAM air-to-air missiles for the nation’s F-16 fleet. Reuters reports that the contract is for over two hundred of the missiles. No contract value was given but it is substantial as the AMRAAM is a fairly expensive system. Deliveries are expected to begin in the 2011 time frame. Over the last five years the UAE has invested heavily in upgrading the capabilities of their armed forces. Most recently they have invested over three billion dollars into missile and air defense capability with the purchase of PATRIOT and THAAD systems from the U.S.

Ratheon Wins Follow On Contract from UAE

Late last year the UAE bought $3.3 billion worth of PATRIOT missile systems from Raytheon. Now the company was awarded a follow on contract for spare parts and support. Forbes reports that this contract is worth up to $246 million. The contract is in two parts and the first $123 million has been executed with the rest to occur as an option. This is the first major export of the PATRIOT outside of NATO. It is obvious that the UAE is looking at regional states with ICBM programs when investing in this system.

Reports that UAE to buy THAAD system

Update – I was wrong in my original surmising that the UAE would buy PATRIOT. They are going whole hog and asking for THAAD. THAAD is a much more expensive, long range ballistic missile defense system. The US Army has not formally fielded it yet. That would explain the high price tag. Rueters report here.

Rueters is reporting that the US Department of Defense will inform Congress that the UAE has asked to purchase a PATRIOT missile system. The estimated cost is $7 B. This would be to provide missile defense against Iranian systems. Congress must approve the sale, normally this is a formality, although it can be more complicated for advanced systems. Obviously such a large contract will be a boon to Raytheon and Lockheed Martin.

The article is here.

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