Story ID: 2.2015-2 Rafales for Egypt
Egypt To Acquire Rafale Combat Jets
By: Chris Pocock
Caption: Qatar could follow, but negotiations with India are still unresolved. 
Word Count: 312
A first export contract for the Dassault Rafale combat jet appears imminent, but it is not with India, where negotiations have dragged on for three years. Instead, according to multiple reports in French media this week, Egypt will acquire 24 aircraft. The deal will be part of a $6 billion package that also includes a French frigate and an MBDA air defense missile system.

Dassault had no official comment on the reports, but French defense minister Jean-Yves Le Drian told Reuters that discussions with Egypt are at an advanced stage. They began last November during a visit to Paris by Egyptian President Sisi and continued in Cairo during a subsequent visit by Le Drian and Dassault chairman and CEO Eric Trappier. The French government export credit agency Coface will reportedly finance 50 percent of the deal, with Saudi Arabia and the UAE supplying the balance. Coincidentally, Egypt was also the first export customer for the previous-generation Dassault warplane, the Mirage 2000.

Meanwhile, there was belated official confirmation that a major sticking point in the negotiations with India were questions of guarantee and liability for the 108 Rafales that would be built under license by state-owned Hindustan Aeronautics Ltd. Laurent Collet-Billon, the head of the French arms procurement agency, also told journalists at the French defense ministry's annual press conference in Paris that Qatar was negotiating for 24 Rafales, plus another 12 options. French defense officials are anxious to conclude at least one Rafale export sale soon, because they have budgeted for only seven annual deliveries to the French armed forces over the coming years. Dassault has been producing the warplane at the minimum economic rate of 11 per annum.  

Collet-Billon also said that Lebanon would be acquiring French weapons worth $3.5 billion, thanks to Saudi Arabian financing. The package will include Airbus D&S Cougar and Gazelle helicopters and MBDA Mistral missiles.