April 26, 2016, 02:05:00 PM EDT By Dow Jones Business News
The head of Lockheed Martin Corp. said Tuesday that domestic budget pressures could delay Qatar from signing a multibillion defense deal this year, though she expressed confidence that the slide in energy prices wouldn’t dent Lockheed’s efforts to boost exports.
The world’s largest defense company by revenue has included the $6 billion sale of two of its Thaad missile-defense systems to Qatar in a backlog expected to be as high as $95 billion by year-end, but Chief Executive Marillyn Hewson said the proposed deal was one of two on an internal watch list.
Oil-rich Middle Eastern nations and Asian states alarmed by China’s military buildup have helped cushion Western arms makers from domestic military budget cuts, but the slide in energy prices has led to concerns among investors that deals could stall.
“It’s just a matter of them balancing their budget,” said Ms. Hewson of Qatar’s plans, adding that there were no signs of overseas buyers cutting purchases of “essential” military equipment.
Lockheed has already sold Thaad to the United Arab Emirates and Oman. South Korea has also expressed interest in the system, which is already in use by the U.S. Army. Beyond missile defense, the company’s other big export opportunities include combat jets—it has discussed building an assembly line in India—and Sikorsky helicopters.
Write to Doug Cameron at email@example.com
So Sebastian I guess you were wrong seems Qatar have funding problems!
See related post:
THAAD missile-defense systems: HERE