UK Renews Push for Saudi Arabia to Invest in Fighter Jet Program

The UK is renewing a push for Saudi Arabia to invest in its next-generation fighter jet program alongside Italy and Japan, as costs spiral and a rival project stalls.

A flurry of diplomatic activity this month saw Prince William and defense minister Luke Pollard both visit Riyadh amid the effort for Saudi Arabia to join the Global Combat Air Programme (GCAP) in some capacity. UK Defence Secretary John Healey told Bloomberg that he and his counterparts in Rome and Tokyo are “developing any discussions with potential partners together.”

“We’ve set out the terms in which Saudi could become involved with GCAP,” Healey told Bloomberg in an interview last week during the Munich Security Conference, while emphasizing his immediate focus is advancing the program. “We’re driving this program forward: the Saudis have their own decisions to make.”

Talks for Saudi Arabia to join the program had been building pace over a year ago, but were held up due to opposition from Japan. That country’s new leadership — Sanae Takaichi took over as prime minister in October and won elections this month — is more amenable to Saudi involvement.

Britain’s fresh diplomatic push comes as manufacturers and allies grow frustrated with the Labour administration’s delay in publishing a plan to allocate fresh defense funding. Though GCAP is expected to be handed billions of pounds in the plan, the delay has led to uncertainty around its ability to finance key contracts.

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The Italian government has been particularly irked by the UK’s failure so far to commit to a helicopter contract for Leonardo, one of the companies involved in GCAP, according to people familiar with the matter, who spoke on condition of anonymity in order to voice internal concerns.

The expected price of the project has also ballooned: Italy now expects early-phase costs to reach €18.6 billion ($22 billion), compared to around €6 billion at 2021 prices when the program was first drawn up, Reuters reported. Multinational defense programs are often beset by spiraling costs and delays, though the GCAP program has been steadily progressing. The Italian parliament approved almost €9 billion of funding for the project last week.

Saudi Arabia could provide a desired cash injection into the program: the UK’s defense committee last year said expanding GCAP “could bring benefits including burden-sharing of costs, access to additional markets, and technical expertise.”

Still, an equal 33.3% work-share in the project between Leonardo, BAE and Japan Aircraft Industrial Enhancement has already been agreed, which is likely to complicate Saudi Arabia’s ability to become a full member of the program.

The Middle Eastern nation is interested in joining the program, one of the people said, though cautioned that its desire could be lessened as a result of a recent deal to acquire advanced F-35 fighter jets from the US. Saudi Arabia last year was designated a major non-NATO ally of the US, alongside Israel, Qatar and Egypt, as part of a broader agreement to strengthen military cooperation.

No new decisions have been taken trilaterally between Britain, Italy and Japan regarding additional countries joining the program, one of the people said.

The UK has long been supportive of the Saudi Arabia joining the project to build a sixth-generation stealth fighter for service from 2035 but the other two partners have been more skeptical about letting the Middle Eastern nation enter critical supply chains and access high-end technology, according to people familiar with the matter.

Japan has been most wary due to national security and intellectual property concerns, they said, with Italy more convinced by the partnership. But as Tokyo looks to start retiring its aging fleet of F-2 fighter jets from 2035, it has become more open to Saudi participation if it helps keep the program on track and doesn’t dilute the work-share for Japanese companies.

“GCAP is a strategically important project that links the Indo-Pacific and the Euro-Atlantic regions, and it is extremely important to accelerate this project,” Defense Minister Shinjiro Koizumi said at the recent Munich Security Conference. He and Healey discussed the project in the German city last week.

Italian premier Giorgia Meloni also discussed ways to speed up investment in the program last month when she visited Japan, some of the people said. Foreign Minister Antonio Tajani has said that he was open to potential expansion.

The Italian government declined to comment. Saudi Arabia didn’t respond to a request for comment. A spokesperson for the UK’s defense ministry said all three nations have “highlighted an openness to working with other nations.”

The GCAP program has made progress in the last year, with a headquarters and joint venture between the three companies established and more than 6,000 engineers working on the project. BAE Chief Executive Officer Charles Woodburn told reporters on Wednesday that though the project is “moving fast,” he’s eager for Britain’s investment plan to be published so they can “crack on with it.”