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FINANCIAL NEWS
Boeing sees USD4b revenue from Mideast defence sales by 2014
21 Nov 2012
(MENAFN) US aerospace and defence company Boeing said it sees about USD4 billion revenue from its defence and security business in the Middle East, over the next two years, Reuters reported.
Gulf states and other Middle Eastern countries that witnessed the Arab Spring uprising are boosting demand for new high-tech military equipment as they swap out older weaponry and invest in new capabilities, President Jeff Johnson said during the Reuters Middle East Investment Summit.
He added that it would be part of a wider plan to lessen reliance on US government work, which is being squeezed by spending cuts.
Boeing’s fighter jets as well as its C-17 military transport aircraft have witnessed strong demand.
Johnson also said that there was a strong demand for the F-15 and F-18 Super Hornets, expecting to see the same strength in the C-17, as Bowing introces more of the aircraft into the market.
Last year, Boeing signed a USD29.4 billion deal to sell 84 F-15 fighter jets to Saudi Arabia, as well as a big defence sale to the UAE.
The Middle East accounts for a third of Boeing’s international defence business, Johnson said. This equates to annual revenue of about USD2 billion.
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