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State Dept Clears $130M Guided Bomb Unit Sale to UAE

State DepartmentThe State Department has approved the United Arab Emirates’ request to purchase guided bomb units and related equipment from the U.S. under a potential $130 million foreign military sales contract.

The UAE plans to use the guided munitions to address Houthi insurgency in Yemen and potential threats posed by the Islamic State in Iraq and the Levant,  the Defense Security Cooperation Agency said Friday.

Boeing (NYSE: BA) and Raytheon (NYSE: RTN) will act as primary contractors of the proposed sale, which covers 1, 000 GBU-31B bomb variants, 600 GBU-12 units, spare parts, containers, training tools and support equipment.

The FMS agreement also calls for contractors to provide personnel training, documentation, technical assistance and logistics support services for the UAE government.

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