Saudi Arabia, US Sign $15B Agreement for 44 THAAD Missile Systems

Saudi Arabia has signed a letter of offer and acceptance with the United States for the procurement of 44 Terminal High Altitude Area Defense (THAAD) missile systems for an approximate $15 billion.

Saudi officials alongside their US counterparts signed the government-to-government agreement earlier this week, CNBC  reported quoting an unnamed state department spokesperson Wednesday.

Saudi Arabia and the US entered formal discussions for THAAD in December 2016.

"After completing required congressional notifications in 2017, followed by many months of negotiation, signing letters of offer and acceptance marks a step toward protecting the United States and its regional partners from Iranian-origin missiles," said the State Department spokesperson.

"The sale of the THAAD missile defense system benefits US national security by supporting the long-term security of Saudi Arabia and the Gulf region in the face of the growing ballistic missile threat from the Iranian regime and Iran-backed extremist groups," the spokesperson added.