.. Saudi Arabia’s huge arms bill has led the country to push for a greater share of the economic benefits, especially jobs. The kingdom has said it wants to become less reliant on imports and spend half its weapons budget in domestic facilities—compared to just 2% at present—part of a plan to diversify its economy beyond the oil industry by 2030.
.. That has led U.S. companies to open Saudi subsidiaries and to agree to shift assembly and other production processes to the kingdom. Boeing announced a joint venture in March that would place more than half the repair work for Saudi helicopters in the country, creating 6,000 jobs.
Robert Stallard, an analyst at Vertical Research, said the signing of the multibillion-dollar combat jet deal could be delayed. He said, though, long-term BAE’s business would not be dented. “We think the Saudi situation will blow over,” he said in a note.