UAE drops plans for Eurofighter Typhoon order

The British company – which leads the activities of the European consortium in the Middle East region – also said that negotiations with Saudi Arabia over the price for 72 of the fighters remain stalled. Shares in the company dropped on the London Stock Exchange on the news.

Local defence analysts suggest this could re-open the doors for French manufacturer Dassault which had been the selected manufacturer until a shock decision in November 2011 saw the Dassault Rafale rejected by the UAE.

Sources suggest the French failed on two grounds – cost and local participation.

BAE had already introduced local work programmes in Saudi to support the Typhoon programme and had argued that technology plus weapon choice would make it ideal for UAE needs.

British Prime Minister made a flying visit to Dubai during the build up to last month’s airshow to boost the push for the contract.

However, it is understood that some element of the UAE’s demands could not be met.

UK analysts suggest that the deal is not dead. The statement from the UAE defence department said it has “ elected  not to proceed at this time” leaving the way open to reopen and reconsider the options – which would of course include the American fighter options from Boeing.

The UAE decision is unlikely to affect the Typhoon's position for prospective sales to Bahrain and other Gulf states.