DUBAI (Reuters), -The United Arab Emirates placed an order for 80 Rafale fighter planes Friday. This is the biggest ever warplane purchase. It’s a multibillion-dollar arms deal that strengthens political and economic ties with France.
French President Emmanuel Macron started a two-day visit to the Gulf region on Friday. He will also be visiting Qatar and Saudi Arabia. He arrives at a moment when Gulf Arab countries are expressing uncertainty over the United States’ attention to the region, even though they want more weapons from their main security ally.
French President has forged a strong relationship with Abu Dhabi Crown Prince Mohammed bin Zayed al-Nahyan, with both countries investing. Paris is home to a permanent military station in Emirati capital.
After a ceremony between Macron and MBZ, the French presidency stated that “In addition the presence of three French military base on UAE territory,” and added, “This mutual trust translates to the acquisition of 80 Rafale aircrafts, 12 Caracal helicopters and associated elements.”
Dassault’s shares rose 6.6% after the announcement.
It is estimated that the deal will be at least $15Billion in value. This comes on top of deals made this year with Egypt, Greece, and Croatia.
Negotiations for Rafale fighter aircrafts are ongoing for over a decade. Abu Dhabi has publicly rejected France’s offer to provide 60 Rafale planes for 2011. Abu Dhabi already owns Mirage warplanes.
According to defence sources, the Rafale fleet will be replaced by Mirage 2000. It is also unlikely that it will replace the American F-35. The UAE maintains its dependence on France and America for security.
Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.