The United Arab Emirates (UAE) has quit discussions with BAE Systems over the possible purchase of 60 Typhoon fighter jets according to a BAE statement.
No reason for the scrapping of the talks has been given, but UAE sources said it was connected with easing of tensions in the Arabian Gulf region.
The British company has been leading talks for the Eurofighter consortium on a possible sale of the Typhoon to the UAE in competition with the Dassault Rafale and the Boeing F/A-18.
One industry source said the two sides had been unable to agree on price or close the gap on other aspects of the negotiations, including the industrial collaboration package.
In addition to the fighter talks, a defense agreement expected to be penned between the UK and the UAE has been put on hold regarding the UK assisting the UAE in marketing defense equipment to Europe, the source added.
The potential sale to UAE was a key export campaign in the Eurofighter consortium effort in the Middle East and elsewhere in an effort to keep production lines open beyond 2018.
The UAE originally preferred the Rafale but opened up the bidding to Typhoon and the F/A-18 after the two sides fell out over a range of issues.
In recent months, the Typhoon was reckoned to be ahead of its rivals in the bidding.
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