Russia violating duty to halt Syria’s use of chemical weapons: U.S.

A person inspects damaged building in the besieged town of Douma, Eastern Ghouta, Damascus, February 20. REUTERS/Bassam Khabieh

By Stephanie Nebehay

GENEVA (Reuters) – Russia has violated its duty to guarantee the destruction of Syria’s chemical weapons and prevent the Assad government from using banned poison gas, the United States said on Wednesday.

“For Russia to claim that the Assad regime has eliminated its chemical stockpiles is just absurd. Its continued denial of the Assad’s regime culpability in the use of chemical weapons is simply incredible,” U.S. disarmament ambassador Robert Wood told the Conference on Disarmament.

“Russia needs to be on the right side of history on this issue. It is currently on the wrong side of history,” he said.

Syria again denied U.S. allegations that it had used chemical weapons against rebel-held areas, and said that “terrorist groups” including Nusra Front and Islamic State had obtained some stocks.

“Syria cannot be possibly using chemical weapons because it very simply has none in its possession,” Hussam Aala, Syrian ambassador to the United Nations in Geneva, told the forum.

The world’s chemical weapons watchdog in the Hague opened an investigation on Sunday into attacks in the besieged, rebel-held Syrian region of eastern Ghouta to determine whether banned munitions had been used, diplomatic sources told Reuters.

Syria signed up to the international ban on chemical weapons in 2013, as part of a deal brokered by Moscow to avert U.S. air strikes in retaliation for a nerve gas attack that killed hundreds of people, which Washington blamed on Damascus. In the years that followed, Syria’s declared stockpile of banned poison gasses was destroyed by international monitors.

Syria’s government had made an “unprecedented achievement by destroying all its chemical weapons in record time and in a manner that is irrevocable, although field conditions were extremely complex due to our war against terrorism”, Aala said.

The United States said last year that Syria again used the banned nerve gas sarin, and President Donald Trump ordered air strikes.

Washington has since said it has evidence that Syria has used chlorine gas in attacks in recent weeks. Rescue workers and medics on the ground have described residents choking on fumes after air strikes.

Unlike nerve gas, chlorine is legal for countries to possess for water purification and other civilian purposes, but using it as a weapon is banned.

Russian Foreign Minister Sergei Lavrov, addressing the Conference on Disarmament, said Syria had eliminated its chemical weapons stockpile and placed its arsenal under international control.

Lavrov said the United States was repeating allegations by what he called “fully-discredited” Syrian rescue workers in rebel-held areas, who had put forth “absurd claims against the government of Syria”.

“We note that the U.S. and its allies are simply exploiting baseless allegations of toxic weapons use by Damascus as a tool of anti-Syrian political engineering,” Lavrov added.

(Additional reporting by Cecile Mantovani; Editing by Raissa Kasolowsky and Peter Graff)

Philippines may turn to China, Russia after scrapping Canada helicopter deal

FILE PHOTO - Philippine Defence Secretary Delfin Lorenzana listens to questions during a news conference inside the military headquarters of Camp Aquinaldo in Quezon city, metro Manila, Philippines March 14, 2017

MANILA (Reuters) – The Philippines may turn to non-Western defense manufacturers, including China and Russia, to acquire 16 helicopters after it had to scrap a $233 million deal with Canada, its defense minister said on Monday.

Francois-Philippe Champagne, Canada’s trade minister, has ordered a review of the contract over concerns about Manila’s intended use for the helicopters.

“We are looking at Korea, Russia, China, Turkey and other countries for the medium-lift helicopters in lieu of the Bell 412EPI,” Philippines’ Defence Minister Delfin Lorenzana told reporters.

“We’re back to square one in the procurement process.”

It took about two years to negotiate the deal. The contract for the 16 combat utility helicopters was a repeat order, he said, after Canada delivered eight Bell 412 helicopters worth 4.8 billion pesos ($92.8 million) in 2014.

Lorenzana signed the Canadian helicopter deal last week at the Singapore Air Show last week, but Canada ordered a review after learning the aircraft would be used in anti-rebel operations.

“I think there is malice in the way it is being raised,” Lorenzana told reporters.

“It is not an attack helicopter but a medium-lift, meaning for transport of personnel and supplies. We are not asking these for free but we’re buying them. We do not have to justify how we will use these equipment.”

President Rodrigo Duterte scrapped the deal on Friday night because of conditions imposed by Canada, telling his generals not to buy from the United States and Canada because of conditions imposed on arms sales.

Air Force officials said Russia’s Kamov and China’s Z-series helicopters are comparable models to Bell’s 412 medium lift. South Korean’s Surions are also an option.

($1 = 51.7300 Philippine pesos)

(Reporting by Manuel Mogato; Editing by Martin Petty & Simon Cameron-Moore)

Defying U.S., Russia says no case for U.N. action against Iran

Iran's national flags are seen on a square in Tehran February 10, 2012, a day before the anniversary of the Islamic Revolution.

By Michelle Nichols

UNITED NATIONS (Reuters) – Russia does not believe there is a case for United Nations action against Iran, Russia’s U.N. ambassador said on Wednesday after traveling to Washington to view pieces of weapons that Washington says Tehran gave Yemen’s Houthi group.

The Trump administration has for months been lobbying for Iran to be held accountable at the United Nations, while at the same time threatening to quit a 2015 deal among world powers to curb Iran’s nuclear program if “disastrous flaws” are not fixed.

“We only heard some vague talk about some action,” Russian U.N. Ambassador Vassily Nebenzia said on Wednesday. “If there is something (proposed) we will see. How can we pass judgment prematurely before we know what it is about?”

Asked if there was a case against Iran at the United Nations, Nebenzia answered: “No.”

U.S. Ambassador to the United Nations Nikki Haley took her 14 Security Council colleagues to a military hangar near Washington on Monday to see remnants of what the Pentagon said was an Iranian-made ballistic missile fired from Yemen on Nov. 4 at Saudi Arabia’s capital Riyadh, as well as other weapons.

A proxy war is playing out in Yemen between Iran and U.S. ally Saudi Arabia. Iran has denied supplying the Iran-allied Houthis with such weaponry and described the arms displayed in Washington as “fabricated.”

“Yemen hosts a pile of weapons from the old days, many countries competing to supply weapons to Yemen during the time of (former) President (Ali Abdullah) Saleh, so I cannot give you anything conclusive,” Nebenzia said. “I am not an expert to judge.”

Independent U.N. experts reported to the Security Council in January that Iran had violated U.N. sanctions on Yemen because “it failed to take the necessary measures to prevent the direct or indirect supply, sale or transfer” of ballistic missiles and other equipment to the Houthi group.

Nebenzia questioned whether there was conclusive evidence. He said it was up to the Security Council’s Yemen sanctions committee – made up of diplomats from the council’s 15 members – to address the report by the U.N. experts.

Haley has said the United States was considering several possible U.N. options for action against Iran, including tightening ballistic missile restrictions on Tehran or imposing targeting sanctions on Iranian individuals or entities.

Diplomats have said Haley has not signaled which accountability option she might pursue or when.

(Reporting by Michelle Nichols; Editing by Howard Goller)

Taiwan plans to invest in advanced arms as China flexes its muscles

A Taiwanese domestically-built Indigenous Defense Fighter (IDF) (also known as the AIDC F-CK-1 Ching-kuo) performs at Gangshan air force base in Kaohsiung, Taiwan August 7, 2017.

By Jess Macy Yu and Greg Torode

TAIPEI/HONG KONG (Reuters) – Taiwan’s ruling party plans to use a long-term increase in defense spending to pursue advanced weapons systems, government officials say, in what is widely seen as growing determination to forge a stronger deterrent against a Chinese attack.

The left-leaning Democratic Progressive Party (DPP), led by President Tsai Ing-wen, is working on detailed spending plans through 2025, two officials with direct knowledge of the matter told Reuters.

Tsai and her team have met repeatedly with military leaders in a push for new investment in training and equipment, one of the officials said. Immediate priorities include new missiles, drones and electronic warfare systems, fighter aircraft and ballistic missile defenses, according to a separate statement from the Ministry of National Defence sent to Reuters.

Although some arms would be domestically produced, such as an existing plan to locally build eight submarines, they say a longer-term Taiwanese drive for improved capabilities could mean fresh U.S. deals. Those requests could deepen tensions between Beijing and Washington.

China considers democratic Taiwan to be a wayward province and has never renounced the use of force to bring the island under its control.

The United States, Taiwan’s sole foreign supplier of arms, has for years called on Taipei to address a worsening military imbalance across the Taiwan Strait, which has recently seen heightened tensions amid military assertiveness by China. In the first week of 2018, China sailed an aircraft carrier and other military ships through the strait on a training mission.

“If there are three weapons systems that China’s high command really wants to keep out of Taiwan’s hands, it is submarines, fighter jets and ballistic missile defenses. Taipei is smartly investing in all three,” said Ian Easton, a U.S.-based research fellow at the Project 2049 Institute, which studies Asia security issues.

In October, Tsai signaled that defense spending would increase by at least 2 percent each year, with more possible based on the need for significant purchases.

By 2025, Taiwan’s annual defense spending is projected to increase by at least 20 percent – or NT$62.4 billion ($2.08 billion) – to NT$381.7 billion, the officials said, if the legislature approves the future budgets.

With economic growth “on track” for this year, Taiwan’s defense spending will “likely” exceed the baseline that the president has announced, one of the officials said.

“The Tsai administration is seeking to undo years of defense spending cuts,” the two officials said in a separate written statement to Reuters.

“The additional funds will target enhancements in asymmetrical defense strategies in the short-term, and advanced weapons and equipment either domestically produced or through defense procurements in the long-term,” one of them added.

Taiwan’s Ministry of National Defence confirmed to Reuters that electronic warfare, information security and improved drones were among the priorities for this year, along with existing programs, including upgrades of its Raytheon Co Patriot missile defenses, Lockheed Martin Corp F-16A/B jet fighters and indigenously built training planes.

The ministry also confirmed plans to improve mobile missile launchers, but has yet to detail whether that would mean reviving an earlier ballistic missile program or improving the cruise missiles Taiwan already has. Both are likely to face intense Chinese scrutiny.

The planned increases mark a change in commitment from the previous China-friendly Kuomintang government under President Ma Ying-jeou, under whom defense spending from 2009 to 2016 slid from 3 percent to 2.1 percent of GDP, according to government data.

Regional diplomats are watching developments closely. Although few nations have formal diplomatic or military ties with the island, any boost in Taiwan’s military could complicate China’s strategic domain.

“The military balance is rapidly shifting in China’s favor, but the new Taiwanese government is more prepared to stand up to China’s behavior,” said Singapore-based security analyst Tim Huxley. “I think some countries, particularly Japan, will see that as a net benefit by making life more difficult for China.”

In recent months, China has ramped up its long-range air force drills, particularly around Taiwan. In March, it said its defense spending would increase 7 percent for 2017, or 1.044 trillion yuan ($158.70 billion).

After taking office in 2016, Tsai has promoted Taiwan’s domestic defense industry as one of several pillars under a so-called “5 plus 2” program that seeks to foster important business sectors in Taiwan.

Analysts have said Taiwan would need to improve both asymmetric warfare and high-end capabilities like aircraft and missile defense after years of budgetary neglect.

Asymmetric warfare means using limited resources to inflict unacceptable damage to a more powerful opponent. Taiwan is betting it can make an attack on it too painful for China to consider, according to Collin Koh, a research fellow at Singapore’s S. Rajaratnam School of International Studies.

“The Taiwanese may not be able to overturn the balance of power now, but they can improve their abilities to raise the costs on China,” he said.

(Editing by Anne Marie Roantree and Gerry Doyle)

France, U.S. ‘determined’ to up pressure on Iran over ballistic weapons

France, U.S. 'determined' to up pressure on Iran over ballistic weapons

PARIS (Reuters) – France and the United States are determined to “vigorously” raise pressure on Iran over its ballistic missile program, including possibly through sanctions, Foreign Minister Jean-Yves Le Drian said during a visit to Washington.

Le Drian was in the American capital on Monday to meet U.S. Secretary of State Rex Tillerson, White House national security adviser H.R. McMaster and U.S. President Donald Trump’s special adviser Jared Kushner.

Tensions between Iran and France have risen in recent months with both sides repeatedly trading barbs in public, including le Drian accusing Iran of “hegemonic temptations” in the region.

Iran on Sunday criticized President Emmanuel Macron over his tough stance toward Tehran and said Paris would soon lose its international credibility if it “blindly follows” U.S. President Donald Trump.

“They didn’t like the word, but I stand by it,” le Drian told reporters. “Iran’s hegemonic temptations in the region is a matter of urgency because it’s within the framework of getting peace in Iraq and Syria that we will stop this process.”

Iranian officials have been particularly aggrieved by France’s criticism of its ballistic missile tests and suggestions of possible new sanctions over the program, which Tehran calls solely defensive in nature.

Le Drian, who is due in Iran at the beginning of January, said he would tell them clearly of Paris’ concerns.

“We are fully determined to press very vigorously on Iran to stop the development of an increasingly significant ballistic capability”,” Le Drian said, reiterating that sanctions were possible.

Macron, unlike Trump, has reaffirmed his country’s commitment to the deal Iran signed in 2015 with world powers under which it curbed its disputed nuclear program in exchange for the lifting of most international sanctions.

After talks with the U.S. officials, Le Drian said he believed that Washington was beginning to understand European messages on the need to maintain the accord.

(Reporting by John Irish; Editing by Raissa Kasolowsky)

Kremlin says U.S. tip-off about planned attack ‘saved many lives’

Kremlin spokesman Dmitry Peskov arrives for the meeting with officials of Rostec high-technology state corporation at the Novo-Ogaryovo state residence outside Moscow, Russia December 7, 2017.

MOSCOW (Reuters) – A U.S. tip-off about a planned attack in St. Petersburg helped save many lives and Russia and the United States should try to cooperate in the same way in future, Kremlin spokesman Dmitry Peskov said on Monday.

Washington provided intelligence to Russia that helped thwart a potentially deadly bombing, U.S. and Russian officials said on Sunday, in a rare public show of cooperation despite deep strains between the two countries.

“It cannot be called anything but an ideal example of cooperation in fighting terrorism,” Peskov told reporters at a conference call. “We should aim for such standards.”

The tip-off resulted in the detention of seven alleged supporters of the Islamic State militant group in St. Petersburg last week, Peskov said.

Russia’s Federal Security Service said on Friday that IS had planned attacks in public places on Dec. 16 and weapons and explosives were found when the suspects were searched.

Peskov said Russian and American security services have contacts but this was the first time when their cooperation was so efficient. “This was very meaningful information that helped to save many lives,” the spokesman told reporters.

Asked if President Vladimir Putin and U.S. President Donald Trump and Putin had discussed a possible meeting, Peskov replied that the issue “had not been brought up yet”.

(Reporting by Maria Tsvetkova; Editing by Mark Heinrich)

In first, U.S. presents its evidence of Iran weaponry from Yemen

In first, U.S. presents its evidence of Iran weaponry from Yemen

By Phil Stewart

WASHINGTON (Reuters) – The United States on Thursday presented for the first time pieces of what it said were Iranian weapons supplied to the Iran-aligned Houthi militia in Yemen, describing it as conclusive evidence that Tehran was violating U.N. resolutions.

The arms included charred remnants of what the Pentagon said was an Iranian-made short-range ballistic missile fired from Yemen on Nov. 4 at King Khaled International Airport outside Saudi Arabia’s capital Riyadh, as well as a drone and an anti-tank weapon recovered in Yemen by the Saudis.

Iran has denied supplying the Houthis with such weaponry and on Thursday described the arms displayed as “fabricated.”

The United States acknowledged it could not say precisely when the weapons were transferred to the Houthis, and, in some cases, could not say when they were used. There was no immediate way to independently verify where the weapons were made or employed.

But U.S. Ambassador to the United Nations Nikki Haley expressed confidence the transfers could be blamed on Tehran.

“These are Iranian made, these are Iranian sent, and these were Iranian given,” Haley told a news conference at a military hangar at Joint Base Anacostia-Bolling, just outside Washington.

All of the recovered weapons were provided to the United States by Saudi Arabia and the United Arab Emirates, the Pentagon said. Saudi-led forces, which back the Yemeni government, have been fighting the Houthis in Yemen’s more than two-year-long civil war.

The unprecedented presentation – which Haley said involved intelligence that had to be declassified – is part of President Donald Trump’s new Iran policy, which promises a harder line toward Tehran. That would appear to include a new diplomatic initiative.

“You will see us build a coalition to really push back against Iran and what they’re doing,” Haley said, standing in front of what she said were the remnants of the Nov. 4 missile.

Israel, Saudi Arabia and the United Arab Emirates, who view Tehran as a threat, seized upon the U.S. presentation in calls on Thursday for international action.

Still, it was unclear whether the new evidence would be enough to win support for sanctions on Iran from some U.N. Security Council members, like Russia or China.

British U.N. Ambassador Matthew Rycroft said he didn’t think “there’s anything that could convince some of my council colleagues” to take U.N. action against Iran. Still, he said “we’re going to be pursuing with them nonetheless.”

Under a U.N. resolution that enshrines the Iran nuclear deal with world powers, Tehran is prohibited from supplying, selling or transferring weapons outside the country unless approved by the U.N. Security Council. A separate U.N. resolution on Yemen bans the supply of weapons to Houthi leaders.

Iran rejected the U.S. accusations as unfounded and Iran’s Foreign Minister Javad Zarif, on Twitter, drew a parallel to assertions by then-U.S. Secretary of State Colin Powell to the United Nations in 2003 about U.S. intelligence on weapons of mass destruction in Iraq.

No weapons of mass destruction were found in Iraq after the U.S.-led invasion.

IRAN LINKS

The Pentagon offered a detailed explanation of all of the reasons why it believed the arms came from Iran, noting what it said were Iranian corporate logos on arms fragments and the unique nature of the designs of Iranian weaponry.

That included the designs of short-range “Qiam” ballistic missiles. The Pentagon said it had obtained fragments of two Qiam missiles, one fired on Nov. 4 against the airport and another fired on July 22.

The Pentagon cited corporate logos it said matched those of Iranian defense firms on jet vanes that help steer the missile’s engine and on the circuit board helping drive its guidance system. It also said the missile’s unique valve-design was only found in Iran.

Iran, it said, appeared to have tried to cover up the shipment by disassembling the missile for transport, given crude welding used to stitch it back together.

“The point of this entire display is that only Iran makes this missile. They have not given it to anybody else,” Pentagon spokeswoman Laura Seal said. “We haven’t seen this in the hands of anyone else except Iran and the Houthis.”

A Dec. 8 U.N. report monitoring Iran sanctions found that the July 22 and Nov. 4 missiles fired at Saudi Arabia appeared to have a “common origin,” but U.N. officials were still investigating the claims that Iran supplied them.

A separate Nov. 24 U.N. report monitoring Yemen sanctions said four missiles fired into Saudi Arabia this year appear to have been designed and manufactured by Iran, but as yet there was “no evidence as to the identity of the broker or supplier.”

The U.N. Iran and Yemen sanctions monitors “saw a majority” of the weaponry displayed by Haley, said a spokesman for the U.S. mission to the United Nations.

The Pentagon put on display other weapons with designs it said were unique to Iran’s defense industry. It pointed to a key component of a Toophan anti-tank guided missile and a small drone aircraft, both of which it said were recovered in Yemen by the Saudis.

It also showed components of a drone-like navigation system like the one the Pentagon says was used by the Houthis to ram an exploding boat into a Saudi frigate on Jan. 30. The United Arab Emirates seized the system in late 2016 in the Red Sea, the Pentagon said.

The U.N. Security Council is due to be briefed publicly on the latest U.N. report monitoring Iran sanctions on Tuesday.

(Additional reporting by Michelle Nichols at the United Nations; Editing by Alistair Bell and James Dalgleish)

Turkey expects S-400 defense system from Russia in 2019: minister

Turkey expects S-400 defense system from Russia in 2019: minister

ANKARA (Reuters) – Turkey expects to receive its first Russian S-400 surface-to-air missiles in 2019, Defence Minister Nurettin Canikli said on Wednesday, the first time Ankara has given a firm timeline for a deal that has alarmed its NATO allies.

Turkey has been in negotiations with Russia to buy the S-400 for more than a year, a decision seen by Washington and some of its other allies in NATO as a snub to the Western military alliance.

Giving the most detail yet on the deal to parliament’s budget committee, Canikli said it called for delivery of two S-400 systems, but that the second one was optional.

The deal has raised concern among NATO countries in part because the weapons cannot be integrated into the alliance’s defenses. Ankara has said it had no choice but to buy the Russian missiles, because NATO countries did not offer a cost-effective alternative.

“Once these systems are received, our country will have secured an important air defense capability. This solution aimed at meeting an urgent need will not hinder our commitment to developing our own systems,” he said.

Relations between Turkey and Russia deteriorated sharply over years during which they backed opposite sides in the war in neighboring Syria, but have improved markedly over the past year. The countries are now cooperating on Syrian peace efforts.

Canikli said Turkey was also in talks with the Franco-Italian EUROSAM consortium on developing its own missile defense systems, after signing a memorandum to strengthen cooperation between the three countries in defense projects.

“With the memorandum in question, Turkish, French and Italian firms have started cooperation to identify, develop, produce and use a more advanced version of the SAMP-T (missile system) in a common consortium,” he said.

Turkey aimed to bring talks with EUROSAM to a “definitive end” soon, he said, adding that Ankara aimed to finalize the deal by the end of 2017 at the latest.

Turkey has been working to develop its own defense systems and equipment, and has lined up several projects for the coming years, including combat helicopters, tanks, drones and more.

Canikli said Turkey received bids last Friday for the production of 500 Altay battle tanks, of which 250 are optional.

Shares of Turkish commercial and military vehicle producer Otokar rose almost 3 percent following the news about the 7 billion euro ($8.24 billion) domestic tank project.

(Reporting by Gulsen Solaker; Writing by Tuvan Gumrukcu; Editing by Daren Butler and Peter Graff)

We’ll buy arms from Russia, Philippines’ Duterte tells Putin

We'll buy arms from Russia, Philippines' Duterte tells Putin

DANANG, Vietnam (Reuters) – Philippine President Rodrigo Duterte thanked Moscow on Friday for its “timely assistance” in defeating pro-Islamic State militants who took over a southern city for months, expressing his willingness to buy Russian weapons.

Duterte last month declared the liberation of Marawi City from Islamist militants after 154 days of fighting, which killed more than 1,100 people, including 165 soldiers, and displaced nearly 400,000 residents.

“I want to build a strong armed forces and a strong police and the reason is very important for you to know that we are eyeing – we are buying arms from Russia this time,” Duterte told Russian President Vladimir Putin on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Vietnam.

The Philippines was to buy more than 20,000 assault rifles from the United States, but some senators, concerned with Duterte’s human rights record and rising killings, blocked that sale.

But China and Russia, whose relations with the Philippines have vastly improved in recent months, donated a total of 11,000 assault rifles and trucks.

“Your timely assistance to my country helped us replenish the old arms and the spent bores that were fired repeatedly and we have a new stock,” he said, in transcripts sent to Manila by the presidential communications office.

Manila and Moscow signed a military deal on logistics, including a contract with a state-owned company for the supply of equipment, during the first-ever visit by a Russian defense minister to the Philippines last month.

The Philippines will have a 125 billion pesos ($2.44 billion) fund to modernize the military from 2018 to 2022 through a multi-year congressional allocation to upgrade its hardware, a senior military official told Reuters.

“We are looking at helicopters, small arms and equipment for humanitarian assistance and disaster relief operations, but we are still discussing the specifics,” said the same military official who declined to be named because he was not authorized to talk to the press.

“We still prefer U.S. and Western equipment but they are very expensive. If the Russians and Chinese equipment can be comparable in quality, then they can be excellent alternatives.”

(Writing by Manuel Mogato in Manila; Editing by Nick Macfie)

Middle East tensions loom over Dubai aerospace pageant

Al Fursan, the UAE Air Force performs during Dubai Airshow November 8, 2015. REUTERS/Ahmed Jadallah/File Photo

By Alexander Cornwell and Tim Hepher

DUBAI (Reuters) – Rising Middle East tensions and a corruption crackdown in Saudi Arabia will cast a shadow over next week’s Dubai Airshow, as military and aerospace leaders try to gauge whether they might prolong a weapons-buying spree in the region.

Fraying business confidence since the summer, when a sudden rift emerged between Arab powers, means the recent rapid growth of major Gulf airlines will also be under scrutiny when the Middle East’s largest industry showcase opens on Sunday.

The biennial gathering has produced a frenzy of deals in the past, especially four years ago when Dubai’s Emirates and Qatar Airways opened the show with a display of unity as they unveiled a headline-grabbing order for passenger jets.

But highlighting the current rift between Qatar and Arab nations including the United Arab Emirates, Qatar Airways’ outspoken chief executive will not be at the show, which has also been overshadowed by political upheaval in Saudi Arabia.

Distrust between Arab Gulf states, on top of escalating tensions between regional arch-rivals Saudi Arabia and Iran, is likely to keep defense spending high on the agenda at the Nov 12-16 event, to be attended by dozens of military delegates.

Saudi Arabia and allies are exploring increases in missile defenses following ballistic missile tests in Iran, which have been heavily criticized by Saudi Arabia and the United States.

Iran views its ballistic missile program as an essential precautionary defense.

“The hot area for the Middle East has been air defense,” said Sash Tusa, aerospace analyst at UK-based Agency Partners.

“While the issue of Iran’s missile tests is new, demand from the Emirates and Saudi Arabia already reflects the fact that they have been at war, in some cases on two fronts, for over two years.”

Saudi Arabia and Iran are facing off in proxy wars in Yemen and Syria. Saudi Arabia, which recently committed to tens of billions of dollars of U.S. equipment, says it has intercepted a missile fired from Yemen over Saudi capital Riyadh.

 

SAUDI CRACKDOWN

Few defense deals get signed at the show itself, but it is seen as a major opportunity to test the mood of arms buyers and their mainly Western suppliers.

But analysts say the way of doing business is up for discussion after an unprecedented crackdown on corruption in Saudi Arabia that erupted days before the show’s opening.

“The big question on many multinational company minds now … {is} will they will change the way in which decision making works when it comes to purchases of their equipment and services,” said Sorana Parvulescu, partner at Control Risks in Dubai.

Those detained in the crackdown include billionaire Prince Alwaleed bin Talal, whose Kingdom Holding part owns Saudi Arabia’s second biggest airline flynas, and Prince Miteb bin Abdullah, head of the country’s elite internal security forces.

“There will be questions around how does this impact their (foreign firms) model of operations in the country and their market share and their market position,” Parvulescu said.

Airbus and Boeing will be pushing hard for new deals on the civil side of the show at Dubai’s future mega-airport, after a pause for breath at the last edition in 2015. Boeing goes into the event with a wide lead in this year’s order race.

Emirates, the region’s biggest carrier, is expected to finalize an additional order for Airbus A380s, which if secured could be crucial to extending the costly superjumbo program.

After years of expansion, some analysts are questioning the viability of the Gulf hub model, which has seen three airlines, Emirates, Etihad Airways, and Qatar Airways, emerge as some of the world’s most influential after taking advantage of their geographic location of connecting east and west.

Leasing executives have also raised doubts over whether the Big Three will take delivery of all of the more than 500 wide-body jets currently on order from Airbus and Boeing.

In September, Middle Eastern carriers saw their slowest rate of international demand growth in over eight years.

 

(Reporting by Alexander Cornwell and Tim Hepher; Editing by Mark Potter)