Saudis set to pay cash for UK jets

By Jason Neely, European Aerospace & Airlines Correspondent

LONDON (Reuters) - Britain and Saudi Arabia are close to a multibillion dollar fighter jet deal that will use cash in a break from controversial arms-for-oil pacts of the past, according to a source familiar with the process.

The deal, which the source said could be struck as early as Tuesday, is aimed at providing greater transparency after secretive past deals triggered investigations into suspected bribery.

Saudi Arabia is expected to spend up to 20 billion pounds on 72 Eurofighter Typhoon combat jets, including weapons, spares and maintenance.

Saudi Defence Minister Prince Sultan was due to present terms of the deal to King Abdullah for approval in a meeting in Jeddah on Tuesday, the source said, adding it was not certain whether the Saudi government would announce the outcome immediately.

Saudi Arabia's defence ministry was not available for immediate comment.

A spokesman for the Ministry of Defence declined to comment except to say a deal was expected by year's end.

The company that will serve as prime contractor, BAE Systems BA.L, declined to comment on the state-to-state deal.

AL YAMAMAH