Al-Salam weapons deal
Andy Carr, CEO and Managing Director of BAE Systems Saudi Arabia and Mohammed Fallatah, President of Al-Salam Aircraft Company.
|Date||21 December 2005 - 2017|
|Description||A large arms deal signed during the government of Tony Blair.|
The Al-Salam weapons deal was a large arms deal signed during the government of Tony Blair.
Multi tranche deal
On 21 December 2005 the British and Saudi Arabian Governments signed a Memorandum of Understanding to “establish a greater partnership in modernising the Saudi Arabian Armed Forces” including close military contacts through joint training and exercises. It was agreed Eurofighter Typhoon aircraft supplied by BAE Systems would replace the Tornado fighter aircraft supplied under Al Yamamah. BAE Systems agreed to invest in Saudi Arabian companies, provide training and transfer military technology.
On 17 September 2007 the UK Government agreed an 11-year deal to supply 72 Typhoon aircraft to the Saudi Arabian Government, including training, spares, ground support equipment, technical and manpower support for £4.43 billion. The two Governments agreed that MODSAP would oversee this deal, known as “Al Salam”.
In 2009 the British and Saudi Arabian Governments agreed a three-year Typhoon Support programme whereby BAE would provide maintenance, support and training for the first squadron of Typhoon aircraft. In 2012 two six-month extensions were agreed, while future support was discussed. In 2013 a five-year, £1.8 billion follow-on contract was agreed to the end of 2017. 
"Deliveries were then suspended while negotiations took place over the price escalation terms in the Salam programme. Deliveries restarted in April 2013, with 10 aircraft being delivered. In 2013 a four-year maintenance contract to deliver scheduled maintenance and upgrade work for 30 Typhoon aircraft was agreed. In February 2014, agreement was reached on the Salam price escalation terms."