Raytheon to sell up to $4 billion in arms to Saudi

By Ulf Laessing

RIYADH, Oct 31 (BestGrowthStock) – U.S. firm Raytheon (RTN.N: ) plans
to deliver arms worth $4 billion to Saudi Arabia, while eyeing
more contracts with the kingdom and neighbouring states Kuwait,
Qatar and the United Arab Emirates, a senior executive said.

The United States said last month Saudi Arabia wants to
spend as much as $60 billion on aircraft, helicopters and other
arms, kicking off a spending spree in the Gulf anticipating an
escalation of the West’s row with Iran over its nuclear plans.

Raytheon, which makes missiles and radar systems, said its
share in the Saudi deal was worth up to $4 billion, while the
defense firm is chasing other contracts in the top oil exporter.

“We have other projects with Saudi Arabia,” said Thomas
Culligan, executive vice president of business development and
chief executive of Raytheon International.

He cited talks with the kingdom over an upgrade of Patriot
missiles — famous for shooting down Scud missiles launched by
Saddam Hussein’s Iraq on Saudi Arabia and Israel in the 1991
Gulf war.

Diplomats expect smaller Arab states in the world’s top oil
producing region to follow with arms orders as they worry they
might become targets for strikes.
Kuwait was also interested in an upgrade of Patriots, while
talks were also going on with Qatar, Culligan told reporters
late on Saturday, declining to provide a price tag.

Raytheon said it was in talks for another arms deal in the
United Arab Emirates.

The firm was also hoping to sign homeland security and cyber
security deals with Saudi Arabia, he added. “We’re working on
proposals,” he said.

Culligan said Raytheon’s deal could help add several
thousand jobs in the United States.

But he cautioned the overall Saudi arms package was expected
to be worth $25 billion rather than $60 billion.

“I don’t know where the $60 billion comes from. If you maybe
add 25 years of maintenance contracts,” he said.

“I think it is much less.”
(Reporting by Ulf Laessing; Editing by Michael Shields)

Raytheon to sell up to $4 billion in arms to Saudi