Prospects for BAE Systems (BA.) just got even better after war-torn Kuwait agreed to spend €8bn (£5.8bn) on 28 Eurofighter Typhoon jets. The deal, which helps dispel fears of oil price weakness impacting Middle East military spending, represents a major breakthrough for the defence contractor, particularly as it was relying on further orders of the jet to meet full-year profit targets.
BAE, which shares a stake in the Eurofighter consortium with Airbus (fr:AIR) and Finmeccanica (it:FNC), had previously threatened to close the Typhoon production line if no more export orders were secured. But this latest vote of confidence, coupled with growing speculation that Saudi Arabia and Bahrain are next in line, suggests geopolitical tensions in the Middle East will revitalise interest in the high-tech aircraft.
