The $930 million (€683 million) deal might fall through

Jan 6, 2014 12:26 GMT  ·  By

In July 2013, the United Arab Emirates’ deputy supreme commander of the armed forces, Sheikh Mohammed, and French Defense Minister Jean-Yves Le Drian signed a deal under which the UAE would buy two intelligence satellites from France.

However, the deal might fall through because of concerns that satellite components supplied by the United States might contain backdoors that could compromise the security of communications.

According to Defense News, the components “provide a backdoor to the highly secure data transmitted to the ground station.”

Sources say that the UAE has asked France to change the components in question. In addition, the Emirates are in talks with some Chinese and Russian companies.

However, it’s uncertain what role these two countries might play. Sources close to the UAE end of the deal say that the country is ready to back out if the issues are not addressed. It’s uncertain if the components in question can be replaced.

The Emirates have been trying to decide on which country to work with on the Falcon Eye project for more than 10 years. Ultimately, France has been awarded the $930 million (€683 million) contract.

The US was also a possibility, but the UAE chose France because it was less restrictive on the use of the shutter control system than the United States.

On one hand, experts say that there is an agreement between the US and France over transfer of capabilities. On the other hand, it’s surprising that Paris would utilize US technology considering that its Pleiades spy satellite is considered critical for the country’s sovereignty.

Another possibility is that the UAE has brought this into discussion in an effort to get a better offer for France’s Dassault Rafale fighter aircraft.