Rafale Sales Could Fatten French Defence Exports by $25 Billion

The prospects of selling Dassault’s Rafale fighter jets to India and UAE could increase France’s defense exports by about US$25 billion in 2016.

France might sell 36 jets to India and 60 to the UAE by the end of the year with both deals together estimated at about $25 billion in defence export revenues.

India and France inked MoU on the Inter-Governmental Agreement on the multi-billion dollar 36 Rafale fighter deal in January this year leaving out the crucial financial aspect.

The contract is still to be finalized based on the financial negotiations. "This is a political agreement opens the possibility of concluding trade negotiations. In India, the state is very present. If there was no agreement among governments, there would be any agreement between industries," the French Minister of Finance, Michel Sapin was quoted as saying by French news daily LeMonde January 24, 2016.

French President Francois Hollande signed the inter-governmental agreement with the Indian Prime Minister Narendra Modi the next day with both sides optimistic that the final agreement could be in hand within a couple of months.

The UAE is planning to buy 60 mult-role fighters  worth an estimated $15 billion. Crown Prince of Abu Dhabi and UAE Minister of Defence, Sheikh Mohammed bin Zayed Al Nahyan, reportedly made a promise to his French counterpart Jean-Yves Le Drian.

French media has reported that the paperwork for the deal with Abu Dhabi has been concluded and only the formal signature is awaited.

The Rafale delivered to Egypt is reported to be proving its mettle in anti-terrorism operations in the Sinai which are closely watched by other Middle Eastern customers. Qatar has signed up to receive 24 Rafale while other potential customers include Oman and Bahrain.