US Government to Expected Announce Approval of Fighter Sales to Qatar & Kuwait

The U.S. government is poised to approve two long-delayed sales of Boeing Co fighter jets to Qatar and Kuwait, and could announce the multibillion-dollar deals during President Barack Obama's visit to the Gulf this week, according to two sources familiar with the matter.

Both deals have been stalled amid concerns raised by Israel that equipment sent to Gulf states could fall into the wrong hands and be used against it, and by the Obama administration's broader decision-making on military aid to the Gulf.

However, the Pentagon and the State Department both have signed off on the sale of some 36 F-15 fighter jets to Qatar and 24 F/A-18E/F Super Hornets to Kuwait, both built by Boeing. The White House is expected to follow suit shortly.

The sale to Kuwait is worth about $3 billion and the one to Qatar is probably close to $4 billion, sources familiar with the matter said.

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Boeing Hints at F/A-18E/F Sales to Kuwait

Boeing on Saturday gave its strongest indication yet about a near-term sale of F/A-18E/F Super Hornets to Kuwait, although the world's second-largest weapons maker said lower oil prices were delaying some arms purchases by Gulf states.

"There are things that we're waiting on... those things are going to be cleared and we think they're going to be cleared soon," Boeing's Paul Oliver said in response to a question on whether discussions about a reported $3 billion F/A-18 deal with Kuwait talks were making progress.

Oliver, vice-president of international business development in the Middle East and Africa for Boeing's defense business, did not name Kuwait specifically.

The United States has not publicly acknowledged talks to sell Boeing fighters to Kuwait, but sources familiar with the matter have said it is in negotiations about selling 24 F/A-18E/F Super Hornets to the Gulf nation in a deal valued at over $3 billion.

Sources familiar with the matter told Reuters they hoped it would clear final regulatory hurdles before the end of the year.

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Apparently the deal is being held up the US government giving approval.

Kuwait Buys 28 Eurofighter Typhoons

Kuwait has agreed to purchase 28 Typhoon combat jets in a multibillion euro deal with the Italian government, industry sources in the region said Friday.

The deal is still in negotiation but Kuwait has agreed to buy 22 single seat and six twin-seat Typhoons in a government-to-government agreement.

Italian firm Finmeccanica's Alenia Aermacchi division has been leading the Eurofighter effort to sell the Typhoon to the Kuwaitis.

Industry sources said the deal could see the Kuwaitis be the first export customer for the active electronically scanned array (AESA) radar being developed for the jet by Italy's Selex ES.

One industry executive said the agreement is welcome, not least because after a flurry of Middle Eastern successes this year for French rival Dassault with the Rafale, the Kuwaiti decision "reinvigorates other opportunities in the gulf region for Typhoon."

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And Boeing gets the boot.  No sale for you!