UAE to finalise $7bn deal with Lockheed Martin

22 February 2011

UAE wants to buy THAAD missile defence systems from US firm

The UAE is expected to finalise a $7bn deal with US-based Lockheed Martin to buy an advanced missile defence system.

The country has been negotiating the deal for the Terminal High Altitude Area Defence (THAAD) with the US government since late 2008 (MEED 2:9:10).

The US government is expected to send a letter of agreement in the next few months after which contractors can start negotiations on production schedules.

US defence contractor Raytheon will support Lockheed in providing logistics and sustainment services.

UAE officials, however, have not confirmed the deal.

“Our negotiating team is still working on the project – it is not finalised yet. But hopefully in the near future we will reach a final agreement,” says Obaid al-Katbi, head of the International Defence Exhibition (Idex) in Abu Dhabi.

THAAD is a key element of the ballistic missile defence system (BMDS) designed to defend troops, allied forces, population centres and critical infrastructure. The weapon system is fully integrated, comprising five major components – launchers, interceptors, a radar, fire control and communications and specific support equipment.

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