BAE Systems, Europe's largest defence company, has confirmed to the London Stock Exchange that it has won a £4.4 billion contract to supply Eurofighter Typhoons to Saudi Arabia.

The deal, which will grow in value to an estimated £20 billion over the lifetime of the aircraft, has been brokered by the British Government.

The Saudis signed the contract last week but British officials only received confirmation today.

A Saudi defence ministry spokesman told the state news agency SPA: “The two governments on Tuesday (Sept 11) signed the contract for the acquisition of (72) planes for a cost of £4.43 billion.”

The contract for 72 Typhoons is one of the largest defence export orders ever won by a British company. The deal came under threat last year when the Serious Fraud Office began investigating earlier dealings between BAE and Saudi Arabia. The investigation was halted by the British government when the Saudis threatened to drop the Typhoon deal and end anti-terrorism co-operation.

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