Lockheed Martin Corp.’s (NYSE:LMT) possible sale of up to $7.6 billion worth of missile-defense systems to Qatar and the United Arab Emirates was approved by the Defense Security Cooperation Agency today, Reuters reported.
The DSCA posted information of the approval to the agency’s website late on Monday.
Qatar had requested two terminal high-altitude area defense fire units, 12 launchers, 150 interceptors, parts, training and logistical support for an estimated cost of $6.5 billion.
UAE had requested an additional 48 THAAD missiles, 9 launchers and other equipment valued at $1.135 billion after signing an initial order for $1.96 billion of THAAD weapons systems in December.
The requesting countries expect the missile-defense systems to help counter perceived threats and lower their dependence on U.S. forces.
Lawmakers can still block the potential sale within 30 days, although these deals are carefully vetted with lawmakers weeks before notifications are posted, according to the Andrea Shalal-Esa article.
The sale comes against the backdrop of heightened tensions with Iran. The U.S. and its allies say Iran is seeking nuclear weapons capability under the cover of a civil energy program.
Iran denies this, but has been hit with a series of international economic sanctions over its nuclear work.
The sale is part of Washington’s ongoing effort to deepen its cooperation with Gulf nations on missile defense and increase pressure on Iran over its nuclear program, the report said.
Lockheed announced in August that Saudi Arabia and other Gulf Cooperation Council countries had shown interest in its THAAD weapon systems.
Secretary of State Hillary Clinton met GCC officials in September. U.S. officials said initial missile-defense sales could be announced soon.
THAAD is part of a layered missile shield designed to shoot down short-, medium- and intermediate-range ballistic missiles with an interceptor that slams into its target.
The weapon system is being built to defend the U.S. and allies against ballistic missiles of all ranges and in all phases of flight. It is being optimized against Iran and North Korea.
Raytheon Co. is another key contractor in the program.
