Saudi Arabia: BAE agrees pricing on Salam deal

The Saudi and UK governments have finally agreed on pricing terms for the purchase of Typhoon aircraft under the Salam programme. The negotiations over price escalation terms have been going on for years but, on 19 February, BAE put out a statement saying terms had been agreed, and that a cash settlement was expected to follow, starting in early 2014. “The Understanding Document signed by the governments of the United Kingdom (UKG) and the Kingdom of Saudi Arabia (KSA) in 2005 included provision for the Typhoon aircraft acquisition by the KSA to be at 2005 economic conditions,” the statement said.