BAE to supply aircraft to Oman

BAE Systems has confirmed it has signed a multi-billion pound deal with the government of Oman to supply of Typhoon and Hawk Advanced Jet Trainer aircraft.

The contract, which is worth around £2.5bn, will see the defence firm deliver 12 Typhoon and 8 Hawk aircraft starting in 2017.

BAE will be the prime contractor in terms of supplying the aircraft and offering support services.

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It is a boost to BAE, which has faced problems in Saudi Arabia as it attempts to resolve pricing issues over the further supply of Typhoons.

Prime Minister David Cameron revealed the deal last night at a press conference in the Middle East.

He hopes to secure sales of more than 100 aircraft to the Gulf region, earning British firms around £6bn in the process.

"Boosting exports is vital to economic growth and that's why I'm doing all I can to promote British business in the fastest-growing markets, so they can thrive in the global race," said Cameron, who is in the region visiting British troops.

"Every country in the world has a right to self-defense and I'm determined to put Britain's first-class defense industry at the forefront of this market, supporting 300,000 jobs across the country."