Iran threat pushes Saudis towards Rafale jet deal
THE Saudi government is in talks to buy 36 Rafale fighter jets from the French regardless of how a dispute with the British over a rival £40bn (E59bn, $78bn) Eurofighter Typhoon contract is resolved.
It was feared that discussions over the Rafale jet, made by France’s Dassault Aviation, were being held as an alternative to the Eurofighter, but sources have told The Business that the Saudis want to buy the Rafale on top of the contract for the Eurofighter Typhoon.
The Kingdom is increasingly concerned about the worsening situation in the Middle East and has been buoyed financially by petrodollars. The French can deliver the Rafale quicker than the Eurofighters can be made. A senior Saudi source said: “Two things have changed in the five years since negotiations began with the British over Eurofighter. The Saudis now have more cash because of money from oil and the situation [with Iran] means it has a pressing need to bolster its airforce.”
French President Jacques Chirac has been pushing hard to interest the Saudis in the Rafale, making capital from worsening relations between Britain and Saudi Arabia.
In recent days, negotiations between the British and Saudi governments over the Eurofighter contract have been shelved.
The Saudi royal family became enraged by the length of time the Serious Fraud Office (SFO) has taken to investigate allegations that BAE Systems set up a £60m slush fund to induce some Saudi officials into securing a previous contract. Chirac plans to visit the Kingdom before the end of the year to secure the Rafale deal.
BAE, the main British company to benefit from the Eurofighter contract, took the unprecedented step of confirming that negotiations with the Saudis were going nowhere.
The threat of Rafale replacing Eurofighter has been used as posturing to force the Government to pressure the SFO into concluding its inquiry.
It is highly unlikely the Saudis would cancel the Eurofighter contract, which has taken five years to progress.
All the parties involved have vested interests in the deal. Saudi Arabia and Britain are firmly entwined over previous agreements that go beyond the supply of military hardware.
Many Saudi pilots are trained by the RAF, BAE has built training and maintenance facilities in the Kingdom and it employs almost 5,000 people over there.
Many Saudi pilots are trained by the RAF, BAE has built training and maintenance facilities in the Kingdom and it employs almost 5,000 people over there.
It was feared that discussions over the Rafale jet, made by France’s Dassault Aviation, were being held as an alternative to the Eurofighter, but sources have told The Business that the Saudis want to buy the Rafale on top of the contract for the Eurofighter Typhoon.
The Kingdom is increasingly concerned about the worsening situation in the Middle East and has been buoyed financially by petrodollars. The French can deliver the Rafale quicker than the Eurofighters can be made. A senior Saudi source said: “Two things have changed in the five years since negotiations began with the British over Eurofighter. The Saudis now have more cash because of money from oil and the situation [with Iran] means it has a pressing need to bolster its airforce.”
French President Jacques Chirac has been pushing hard to interest the Saudis in the Rafale, making capital from worsening relations between Britain and Saudi Arabia.
In recent days, negotiations between the British and Saudi governments over the Eurofighter contract have been shelved.
The Saudi royal family became enraged by the length of time the Serious Fraud Office (SFO) has taken to investigate allegations that BAE Systems set up a £60m slush fund to induce some Saudi officials into securing a previous contract. Chirac plans to visit the Kingdom before the end of the year to secure the Rafale deal.
BAE, the main British company to benefit from the Eurofighter contract, took the unprecedented step of confirming that negotiations with the Saudis were going nowhere.
The threat of Rafale replacing Eurofighter has been used as posturing to force the Government to pressure the SFO into concluding its inquiry.
It is highly unlikely the Saudis would cancel the Eurofighter contract, which has taken five years to progress.
All the parties involved have vested interests in the deal. Saudi Arabia and Britain are firmly entwined over previous agreements that go beyond the supply of military hardware.
Many Saudi pilots are trained by the RAF, BAE has built training and maintenance facilities in the Kingdom and it employs almost 5,000 people over there.
Many Saudi pilots are trained by the RAF, BAE has built training and maintenance facilities in the Kingdom and it employs almost 5,000 people over there.
posted by Marko at 12/07/2006 08:59:00 AM
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