The first installment in a £5 billion deal for the purchase of 24 Eurofighter Typhoon fighters and nine Hawk Advanced Jet Trainer was paid by Qatar on Tuesday, BAE Systems Plc said. The initial deal was struck in December but the finalization has stalled, prompting concern among investors. The contract, which has now become effective, was changed in July to add the Hawks alongside initial support services.
Deliveries should start in 2022, the statement reveals. Typhoons were developed together with Leonardo SpA and Airbus SE. BAE inked a deal with Saudi Arabia in March to supply 48 units of the sophisticated warplane. Qatar is under embargo and sanctions by its former ally, the remaining members of the Gulf Cooperation Council, Egypt and several other Arab countries.
The original arrangement has included a clause where the first payment was expected no later than at the end of June, but the deadline was later pushed back by three months. UK Export Finance provided support for the transaction.
