After more than a year of negotiations the UKs BAE Systems has said it has failed to reach a £6bn deal to supply 60 Typhoon jets to the UAE.
In a statement, the company said it had been in discussions with the UAE regarding a range of defence and security capabilities including the potential supply of Typhoon aircraft, but the UAE have advised that they have elected not to proceed with these proposals at this time.
BAE also said it still in talks with the Saudi government about the terms of its contract to supply 72 Typhoons to the country. A deal was signed in 2007, but it included provisions for renegotiation as economic conditions changed.
BAEs chief executive officer Ian King said in August that securing the UAE deal could be a major game changer for the company and the order, along with other potential orders from Saudi Arabia, could help stretch its Typhoon production line by four years to 2022.