BAE's £5bn Qatar deal gets green light

An agreement with the government of the State of Qatar for Typhoon and Hawk aircraft and related services, first announced in December, is now effective and the first payment has been received.

The deal, worth around £5bn to BAE, includes 24 Typhoon aircraft and a bespoke support and training package for the Qatar Emiri Air Force.

The contract was amended in June to increase the number of Hawk Advanced Jet Trainer aircraft, which are built in BAE Systems’ factories in Warton and Brough, from six to nine.

On agreement of terms, the first payment was received and the order is now under way, with the first aircraft expected to be delivered in 2022.

Charles Woodburn, BAE Systems chief executive, said: "This contract represents a significant step in BAE Systems’ long-term relationship with the State of Qatar, as it becomes the ninth country to choose Typhoon.

"The proven combination of Typhoon and Hawk will provide the Qatari Armed Forces with the most advanced and flexible multi-role combat aircraft on the market today, along with best in class support and training."

Gavin Williamson, the UK government's defence secretary, added: "This monumental, multi-billion-pound deal is now officially in place, and those from across government and industry who have worked so hard on it together can be extremely proud to see it reach this stage.

"It’s a massive boost to the British defence industry, helping to support thousands of jobs, and it will help us further build the trust between the UK and Qatar to tackle the challenges we both share, support stability in the region and deliver security at home."

Typhoon is a major part of BAE Systems’ Lancashire operations, with manufacturing work taking place at Samlesbury and final assembly, flight testing and further engineering taking place at Warton. BAE Systems previously stated that the deal would support ‘thousands of jobs’, particularly at Warton.