What Happened: Saudi Arabia has frozen a deal between Egypt and Germany for four MEKO A200 corvettes that was signed in September 2018, La Tribune reported Nov. 5. The contract, worth $2 billion, was in large part financed by Saudi Arabia.
Why It Matters: This is the first significant pushback by Saudi Arabia following the severe criticism it received over the apparent murder of exiled journalist Jamal Khashoggi. This development also highlights how Egypt's arms spending spree over the last few years remains dependent on foreign financing.
Background: As part of its response to Khashoggi's death, Germany has recently frozen arms export licenses on many products intended for Saudi Arabia, including Typhoon fighter planes and A-330 Multi-Role Tanker and Transport aircraft.
Read More:
- Can Saudi Arabia Build a Successful Tourism Industry? (Oct. 31, 2018)
- Egypt Goes on an Arms Spending Spree (Oct. 9, 2018)
- How a Saudi Journalist's Disappearance Could Have a Global Impact (Oct. 9, 2018)
