Lockheed Martin secures $263m contract to service Saudi F-15s

The value of the deal is the largest announced so far at the biennial Dubai Airshow, which runs until Thursday

Lockheed Martin announced on Monday that it has secured a $262.8 million contract from the US Air Force to service the sniper targeting system of Saudi Arabia’s F-15 and radars that allow for day and night low-level navigation.

It is one of the first major deals reached at the biennial Dubai Airshow, which will run until Thursday. The show is taking place at Dubai's newest airport, the Al Maktoum International.

The announcement came as Saudi Arabia leads a war in Yemen and is part of a US-led coalition targeting the Islamic State group in Syria.



Despite a drop in oil prices and subsequently lower revenue for Gulf Arab states, Saudi Arabia and UAE are not expected to cut back on defense spending in the coming years. The kingdom and its rival Iran are backing opposite sides of the war in Syria and support opposing political groups in Lebanon and Bahrain. Earlier in the day, India’s Jet Airways confirmed an order for 75 Boeing 737 planes previously listed on the US manufacturer’s book as for an undisclosed client.

“The order, previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX8s, as well as options and purchase rights for an additional 50 aircraft,” Boeing said in a statement released at a joint press conference at the Dubai Airshow.



Compared with the previous airshow in 2013, which included announcements of $140 billion in Boeing and Airbus orders, this year's show has been largely a chance for major Gulf carriers to showcase their new planes and for international businesses to meet potential aviation and aerospace clients in the region.

Aerospace investors are concerned that a glut of wide-body jets rolling off production lines towards the end of this decade could put pressure on aviation, just as doubts gather over the pace of economic activity.

The article originally appeared on Business Insider.