CEO Morning Brief

US Agrees to US$3 Bil Saudi Missile Sale After Biden Visit

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Publish date: Thu, 04 Aug 2022, 09:00 AM
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TheEdge CEO Morning Brief
US agrees to US$3 bil Saudi missile sale after Biden visit

WASHINGTON (Aug 3): The US announced on Tuesday (Aug 2) that it had approved the potential sale of additional Patriot missiles and related equipment to Saudi Arabia in a deal valued at as much as US$3.05 billion, just weeks after an awkward meeting between President Joe Biden and Saudi Crown Prince Mohammed bin Salman.

The encounter came to be symbolized by Biden’s fist-bump with a leader whose kingdom he once labelled a global “pariah” and hoped to marginalize after the killing of columnist Jamal Khashoggi. It underscored the president’s calculus to bring home relief from high gasoline prices and to reaffirm the US role in the Middle East.

But Biden departed Saudi Arabia last month without a firm commitment for an increase in oil production that could ease pain at the gasoline pump, saying only that based on his conversations he expects “further steps in the coming weeks”.

The Organization of Petroleum Exporting Countries and its allies including Russia convene virtually later Wednesday, and a Bloomberg survey of traders and analysts suggested the alliance led by Saudi Arabia was more likely to keep output steady in September than agree on an increase.

The weapons sale, which is subject to congressional approval and then negotiations with contractors, comes after the White House pledged renewed cooperation with Saudi Arabia on integrated air defense, including “far-reaching foreign military sales cases with emphasis on defensive systems and advanced technology.”

Saudi Arabia asked to buy 300 Patriot guidance-enhanced missiles, known as GEM-T, made by Raytheon Technologies Corp. Also included in the package are tools, test equipment, spare parts and logistics support for the tactical ballistic missiles.

Source: TheEdge - 4 Aug 2022

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