US Approves $1B Weapon System FMS Deals With Saudi Arabia

The Kingdom of Saudi Arabia has received clearance from the U.S. State Department to purchase missiles, ammunition and other weapon systems via three foreign military sale transactions worth potentially $1.05 billion.

The Defense Security Cooperation Agency said Friday KAS requested to buy 2,503 AGM-114R3 Hellfire II missiles and related equipment for $655 million approximately, with Lockheed Martin (NYSE: LMT) as the principal contractor.

The other requests are worth $251.8 million for AIM-9X Block II Sidewinder missiles and related elements of logistics and program support; and $139 million for ammunition for artillery systems, machine guns and tanks and related equipment.

RTX (NYSE: RTX) will serve as principal contractor on the Sidewinder deal.

The proposed sales are intended to boost Saudi Arabia’s capability to address current and future threats and support its self-defense and regional security missions in the Middle East region.

The DSCA has notified Congress of the FMS.

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