Boeing Defense expects potential Egypt order as early as next year

Boeing Co. is negotiating with Egypt over several military products, including Apache attack helicopters, and support for existing ones.

A new order could come by next year, Paul Oliver, vice president of International Business Development in the Middle East and Africa for Boeing Defense, Space & Security, told reporters Saturday in Dubai. Boeing also expects a deal with Kuwait for F/A-18 Super Hornet fighter-bombers to come soon, Oliver said, without being more specific.

“There’s some things we’re waiting on,” he said of the Kuwait deal. “They’re going to be cleared and we think they’re going to be cleared soon.”

Meanwhile, Gulf governments seeking to bolster their armies to deal with conflicts in the region are delaying non-urgent long-term programs as low oil prices squeeze state budgets, he said. With the involvement of Saudi Arabia and the United Arab Emirates in the conflict in Yemen, countries in the Gulf are pushing to accelerate deliveries of arms needed in their operations, such as rotorcraft, that fulfill their immediate needs, Oliver said.

“They’re focusing on what they need to sustain their operations, I don’t think anybody is looking at any of these things to be over quick so I think they’re being very prudent,” he said. “They’re going with things that are proven, off-the-shelf solutions that they need right now.”

Oil-exporting countries are deferring some long-term development programs for at least three years due to low prices, Oliver said.

Source: Bloomberg