Britain’s arms deals with Saudi Arabia have a long and sordid past. On this page you can find some key facts about this long history (it will be updated regularly), but if you want to know about the most sordid bits you will have to buy the book.
Saudi Arabia is unusual in that it has two militaries. There are the regular armed forces, controlled by the Saudi Arabian Ministry of Defence and Aviation. Since the early 1960s they have been controlled by the “Sudairi” Princes of the Saudi Royal Family. The other armed force is the Saudi Arabian National Guard, a counter-revolutionary force with tribal origins. Since the early 1960s this has been controlled by the family of Prince Abdullah, who has been the King since 2005.
Deals with the Saudi Arabian Ministry of Defence and Aviation
The Saudi Arabian Air Defence Scheme (SAAD)
The Saudi Air Defence Assistance Project (SADAP)
The Saudi British Defence Co-operation Programme (SBDCP)
Value of these deals to BAE today
The Ministry of Defence Saudi Armed Forces Project (MODSAP)
Deals with the Saudi Arabian National Guard
Saudi Arabian National Guard Communications Network (SANGCOM)
Saudi Arabian National Guard Medical Services Project (SANGMED)
Tactica armoured vehicles contract
Arms export licences issued since 2008
Deals with the Saudi Arabian Ministry of Defence and Aviation
The most well known of Britain’s arms deals with Saudi Arabia are with the Saudi Arabian Ministry of Defence and Aviation. In particular, a series of deals has resulted in BAE Systems having a continuous relationship with Saudi Arabia for half a century.
Al Yamamah, its predecessors and successor
Prior to 1977, and when the Saudi deals first started, what is now BAE Systems was a private company known as the British Aircraft Corporation (BAC).
The Saudi Arabian Air Defence Scheme (SAAD)
In December 1965 the Saudi Arabian Government signed a Letter of Intent, agreeing to buy:
- Forty Lightning fighter jets and twenty-five Jet Provost training aircraft from BAC (contract signed May 1966)
- Nine radar stations from Associated Electrical Industries (AEI) (contract signed April 1967)
- Training, logistics and other support services from Airwork (contract signed September 1967).
The deal was worth £118 million (worth about £1.6 billion in 2012/13 prices).
While the SAAD contracts were being negotiated, the Saudi Arabian Government, BAC, AEI, Airwork and Hawker Siddeley agreed a separate deal in March 1966, known as “Magic Carpet”. The British companies agreed to supply the following:
- Six Lightning aircraft (BAC).
- Six Hunter aircraft (Hawker Siddeley).
- Two radars (AEI).
- Maintenance support, pilots, ground crew, and construction work (Airwork).
The purpose of the deal was to provide a squadron of aircraft to be stationed at Khamis Mushayt near the Yemen border, as an emergency measure to counter the perceived threat from Yemen to Saudi Arabia.
The Saudi Air Defence Assistance Project (SADAP)
In May 1973 the British Government agreed to maintain the aircraft and equipment sold to the Saudi Arabian Government under the SAAD, and carry out training, in a deal worth £253 million. Unlike SAAD, where the Saudi Arabian Government entered into contracts with each company individually, the Saudi Arabian Government now signed a “Memorandum of Understanding” with the British Government (as happened each time the project was extended). The British Government then placed a contract with BAC to supply the services. The British Ministry of Defence established Project Teams in Riyadh and London to monitor the deal.
In April 1977 BAC was nationalised and became British Aerospace (BAe). The SADAP deal was extended in September 1977 (deal worth £635 million).
In February 1981, BAe was part privatised. In August 1982, the SADAP deal was extended again (deal worth £350 million).
In May 1985 the British Government sold its remaining shares in BAe.
In September 1985, the British Government signed a Memorandum of Understanding (scroll down) with the Saudi Arabian Government. This Memorandum of Understanding marked the start of what is known as the Al Yamamah project. Under the terms of the Memorandum of Understanding:
- The British Government agreed to supply the Saudi Arabian Government with:
- 48 Tornado fighters (ADV) made by British Aerospace.
- 24 Tornado ground attack aircraft (IDS) made by British Aerospace.
- Hawk jet trainers made by British Aerospace.
- 30 PC-9 basic training aircraft made by Swiss company Pilatus.
- Support services, equipment, weapons, ammunition and electronic warfare systems for the above.
- All future developments of the aircraft, systems and weapons mentioned above.
- The Saudi Arabian Government agreed:
- To pay “of the order of three to four billion pounds sterling”.
- To sell back to the British Government the Lightning and Strikemaster aircraft (and related equipment and parts) it had bought since 1965.
The prime contractor was BAe.
Two further Memoranda of Understanding were signed:
- February 1986 – a Memoranda of Understanding set out the detailed arrangements for Al Yamamah. The SADAP Project Teams in Riyadh and London now formed the Al Yamamah project offices and became known as the Ministry of Defence Saudi Armed Forces Project (MODSAP).
- July 1988 – a Memoranda of Understanding provided for the procurement by the Saudi Arabian Government of further British aircraft, weapons and ships.
In 1993 a New Buy Tornado Agreement was signed, under which the British Government agreed to supply the Saudi Arabian Government with additional Tornado ground attack aircraft.
From 1989 the UK’s Export Credits Guarantee Department provided insurance and indemnities to BAE in respect of the Al Yamamah programme. Some British Government documents which set out the background to ECGD’s involvement are available here.
In 1999 BAe merged with Marconi, and what is now BAE Systems was formed.
Al Yamamah was investigated by the UK Serious Fraud Office from 2004 to 2006, along with BAE’s dealings in the Czech Republic, Romania, South Africa and Tanzania. In December 2006 the investigation was terminated following heavy pressure from the Saudi Royal Family, BAE and the British establishment. A comprehensive set of documents about the attempt to reopen the investigation is here.
BAE was later investigated in the US, and in 2010 “BAE Systems pleaded guilty to knowingly and willfully making false statements to U.S. government agencies. The actions of BAE Systems impeded U.S. efforts to ensure international trade is free of corruption”. BAE was fined $400 million for its conduct in Saudi Arabia, the Czech Republic and Hungary. At the same time BAE agreed a settlement with the Serious Fraud Office regarding Tanzania, and was fined £500,000. In 2011 the US State Department fined BAE $79 million for, among other things, “failure to report the payment of fees or commissions associated with defense transactions”.
The Saudi British Defence Co-operation Programme (SBDCP)
At the end of 2006 the activities taking place under the Al Yamamah Memoranda of Understanding were extended for a further five years and became known as the Saudi British Defence Co-operation Programme (SBDCP). BAE Systems remains the Prime Contractor, as it (and its predecessor BAe) has been throughout the whole Al Yamamah programme.
As part of this programme BAE has received £1.2 billion worth of orders for the Tornado Sustainment Programme. By the end of 2011 61 of 81 Tornados had been upgraded, and the upgrade was completed in 2012. Under this programme BAE is also:
- supplying Storm Shadow missiles to the Saudi Arabian Government.
- carrying out a Naval Minehunter Mid-Life Update (which began in 2011) and a multi-year Naval Training Programme.
In May 2012 BAE won a £1.6 billion contract to supply a further 22 Hawk jet trainers, and 55 PC-21 basic training aircraft made by Swiss company Pilatus, aircraft simulators and training aids. In 2012 BAE won further orders worth £3.4 billion to provide manpower, logistics and training to the Royal Saudi Air Force to the end of 2016.
In 2013 a further £1.5 billion contract for Tornado aircraft upgrades and weapons was agreed as part of the SBDCP.
On 21 December 2005 the British and Saudi Arabian Governments signed a Memorandum of Understanding to “establish a greater partnership in modernising the Saudi Arabian Armed Forces” including close military contacts through joint training and exercises. It was agreed Eurofighter Typhoon aircraft supplied by BAE Systems would replace the Tornado fighter aircraft supplied under Al Yamamah. BAE Systems agreed to invest in Saudi Arabian companies, provide training and transfer military technology.
On 17 September 2007 the British Government agreed an 11-year deal to supply 72 Typhoon aircraft to the Saudi Arabian Government, including training, spares, ground support equipment, technical and manpower support for £4.43 billion. The two Governments agreed that MODSAP would oversee this deal, known as “Al Salam”.
In 2009 the British and Saudi Arabian Governments agreed a three-year Typhoon Support programme whereby BAE would provide maintenance, support and training for the first squadron of Typhoon aircraft. In 2012 two six-month extensions were agreed, while future support was discussed. In 2013 a five-year, £1.8 billion follow-on contract was agreed to the end of 2017.
The aircraft have been delivered as follows:
2009: 8 Typhoon
2010: 10 Typhoon
2011: 6 Typhoon
Deliveries were then suspended while negotiations took place over the price escalation terms in the Salam programme. Deliveries restarted in April 2013,with 10 aircraft being delivered. In 2013 a four-year maintenance contract to deliver scheduled maintenance and upgrade work for 30 Typhoon aircraft was agreed.
In February 2014, agreement was reached on the Salam price escalation terms.
Value of these deals to BAE today
In 2005, then BAE Systems Chief Executive Mike Turner said that BAE had earned around £40 billion from Al Yamamah over 20 years. The table below shows BAE’s revenues and how much of them are from the Saudi Arabian Ministry of Defence and Aviation.
| Year | Total (£m) | From Saudi arms deals (£m) | % from Saudi arms deals |
|---|---|---|---|
| 2007 | 14309 | 1808 | 12.6% |
| 2008 | 16671 | 1531 | 9.2% |
| 2009 | 20374 | 2602 | 12.8% |
| 2010 | 20980 | 2870 | 13.7% |
| 2011 | 17770 | 2276 | 12.8% |
| 2012 | 16691 | 2302 | 13.8% |
| 2013 | 16864 | 3399 | 20.2% |
| Total | 123659 | 16788 | 13.6% |
The Ministry of Defence Saudi Armed Forces Project (MODSAP)
The current Ministry of Defence Saudi Armed Forces Project was established as part of the arrangements for the Al Yamamah arms deal, although its predecessor has been in existence since the Saudi Air Defence Assistance Project (SADAP) commenced in 1973. An answer to a Parliamentary Question revealed that at 1 April 2014 MODSAP’s role was “to support the United Kingdom’s commitment to the defence of Saudi Arabia through the supply of modern military aircraft, naval vessels, weapons and associated support services to the Saudi Armed Forces”. At that point it employed 193 staff, who are paid for by the Saudi Arabian Government.
Deals with the Saudi Arabian National Guard
The Saudi Arabian National Guard exists as an Army to protect the Saudi Royal Family. From 1963 until 2010 it was commanded by Prince Abdullah, who is now King of Saudi Arabia.
Saudi Arabian National Guard Communications Network (SANGCOM)
On 19 March 1978 the British and Saudi Arabian Governments signed a Memorandum of Understanding for a deal known as the Saudi Arabian National Guard Communications Network (SANGCOM) project. The British Ministry of Defence placed a contract with Cable & Wireless to fulfil the deal, managed by a Ministry of Defence Project Team in Riyadh and Britain, separate from the SADAP and MODSAP teams. The value of the first part of the deal was around £200 million.
In June 1982 the an agreement was signed by the British and Saudi Arabian Governments for the second part of the SANGCOM project, worth around £200 million.
Currently, the prime contractor is GPT Special Project Management Limited, a subsidiary of the European aerospace conglomerate Airbus Group. The Saudi Arabian National Guard is the sole customer of GPT.
The following figures are taken from GPT’s Annual Reports filed at Companies House (company 2984211).
| Year | Revenues (Saudi Riyals 000s) |
|---|---|
| 2008 | 193207 |
| 2009 | 219293 |
| 2010 | 288217 |
| 2011 | 424698 |
| 2012 | 682151 |
| 2013 | 672862 |
| Total | 2480428 |
Since August 2012, GPT has been investigated by the UK Serious Fraud Office and the investigation is ongoing. Much of the media reporting has been carried by Private Eye and Exaro News. You can buy the Private Eye Special Report on GPT, called “Shady Arabia and the Desert Fix” here, and see Exaro News’ extensive collection of articles on GPT here.
The Ministry of Defence has a SANGCOM Project Team, who, according to an answer to a Parliamentary Question, “support the United Kingdom’s commitment to the Kingdom of Saudi Arabia by acquiring and supporting modern communications capabilities for the Saudi Arabian National Guard”. On 1 April 2014 the Ministry of Defence employed 49 staff on this team, who are paid for by the Saudi Arabian Government.
Saudi Arabian National Guard Medical Services Project (SANGMED)
On 24 May 1981 the British and Saudi Arabian Governments signed a Memorandum of Understanding for a deal known as the Saudi Arabian National Guard Medical Services Project (SANGMED). The British Government placed a contract with the International Hospitals Group to modernise and develop the National Guard’s medical services, and two hospitals were built in Saudi Arabia. The project finished in 1993. As with the SANGCOM project, the deal was overseen by a Project Team from the British Ministry of Defence.
Tactica armoured vehicles contract
In June 2009 BAE Systems started delivering Tactica armoured vehicles to the Saudi Arabian National Guard, and secured a contract for the support of these vehicles. By the end of 2010 all 200 vehicles had been delivered.
Arms export licences issued since 2008
An overview of the nature of the UK’s arms trade with Saudi Arabia can be found here, which lists broad categories of licences granted, with the value of equipment licensed, since 2008. A full list of UK export licences to Saudi Arabia issued since 2008 is available here.
In its most recent report, published July 2014, the UK Parliament’s Committees on Arms Export Controls expressed concern that a number of extant licences to Saudi Arabia might not be compliant with the Government’s Arms Export Licencing Criterion: Two (respect for human rights and fundamental freedoms in the country of final destination). Lists of UK export licences to Saudi Arabia issued since 2008 for the categories of equipment mentioned by the Committees are given below:
- anti-riot/ballistic shields
- body armour
- command communications control and intelligence software
- components for body armour
- components for ground vehicle communications equipment
- components for machine guns
- components for military combat vehicles
- components for military communications equipment
- components for sniper rifles
- components for weapon sight mounts
- crowd control ammunition
- cryptographic software
- CS hand grenades
- equipment employing cryptography
- equipment for the production of machine guns
- equipment for the use of weapon night sights
- equipment for the use of weapon sights
- ground vehicle communications equipment
- gun mountings
- gun silencers
- hand grenades
- military communications equipment
- radio jamming equipment
- small arms ammunition
- smoke/pyrotechnic ammunition
- sniper rifles
- software for equipment employing cryptography
- software for ground vehicle military communications equipment
- software for radio jamming equipment
- software for the use of equipment employing cryptography
- tear gas/irritant ammunition
- technology for ground vehicle military communications equipment
- wall/door breaching projectiles/ammunition
- weapon night sights
- weapon sight mounts
- weapon sights
Last updated: 27 November 2014.