The United States has reached a deal to sell $3.48 billion worth of missiles and related technology to the United Arab Emirates, a close Mideast ally, as part of a massive buildup ofdefense technology among friendly Mideast nations near Iran.

Pentagon spokesman George Little announced the Christmas Day sale on Friday night. He said the U.S. and U.A.E. have a strong defense relationship and are both interested in “a secure and stable”Persian Gulf region.

The deal includes 96 missiles, along with supporting technology and training support that Little says will bolster the nation’s missile defense capacity.

The deal includes a contract with Lockheed Martin to produce the highly sophisticated Terminal High Altitude Area Defense, or THAAD, weapon system for the U.A.E.

Tom McGrath, vice president and program manager for Lockheed Martin’s THAAD program in Dallas, said in a statement it was the first foreign military sale of the THAAD system.

THAAD interceptors are produced at Lockheed Martin’s Pike County Facility in Troy, Alabama. The launchers and fire control units are produced at the company’s Camden, Arkansas, facility.

Wary of Iran, the U.S. has been building up missile defenses of its allies, including a $1.7 billion deal to upgrade Saudi Arabia’s Patriot missiles and the sale of 209 Patriot missiles to Kuwait, valued at about $900 million.

On Thursday, the Obama administration announced the sale of $30 billion worth of F-15SA fighter jets to Saudi Arabia.

Under the fighter jet agreement, the U.S. will send Saudi Arabia 84 new fighter jets and upgrades for 70 more. Production of the aircraft, which will be manufactured by Boeing Co., will support 50,000 jobs and have a $3.5 billion annual economic impact in the U.S.

All the sales are part of a larger U.S. effort to realign its defense policies in the Persian Gulf to keep Iran in check.  [Associated Press]

The US Defense Security Cooperation Agency announces [PDF] the United Arab Emirates’ request for 3 Terminal High Altitude Air Defense (THAAD) Fire Units with 147 THAAD anti-ballistic missiles, 4 THAAD Radar Sets (3 tactical and one maintenance float), 6 THAAD Fire and Control Communication stations, and 9 THAAD Launchers. This would represent the first foreign sale of the THAAD system.

The UAE is also requesting fire unit maintenance equipment, the heavy trucks that carry the THAAD components, generators, electrical power units, trailers, communications equipment, tools, test and maintenance equipment, repair and return, system integration and checkout, spare/repair parts, publications, documentation, personnel training, training equipment, contractor technical and logistics personnel services, and other related support elements. The estimated cost is $6.95 billion.

The principal contractor is Lockheed Martin Space Systems Corporation in Sunnyvale, CA (THAAD), and the sub-contractor is Raytheon Corporation in Andover, MA (radar).

The UAE will be requesting industrial offsets, which will be negotiated with these contractors. On the other hand, the UAE “does not desire a government support presence in its country on an extended basis.” A total of 66 contractor logistic support personnel could be stationed in United Arab Emirates for extended periods, and additional training and major defense equipment personnel may be in the United Arab Emirates for short periods of time, not to exceed 24 months.  [Defense Industry Daily]

The UAE (United Arab Emirates) has become the third largest importer of weapons in the world, and the largest in the Middle East. The other two bigger spenders worldwide are India and China. In the Middle East, the UAE imports 50 percent more weapons than Israel. The UAE is a confederation of small Arab states at the southern end of the Persian Gulf. With a population of only 5.5 million, and large oil and gas deposits, the emirates have a per-capita income of $43,000. Thus the UAE has a lot to defend, and an increasingly belligerent neighbor just across the Gulf. The UAE controls one side the entrance to the Gulf (the Straits of Hormuz). Iran is on the other end, and both nations dispute ownership of some islands in the middle.

The UAE wants to defend itself from potential Iranian aggression. To that end, they are spending $7 billion on American THAAD (Terminal High Altitude Area Defense) anti-missile systems to protect itself against the growing arsenal of Iranian ballistic missiles. The UAE is also buying lots of aircraft, including 75 U.S. F-16s and 50 French Mirage 2000-9 fighters. There are also ten U.S. C-103J and four C-17 transports on order. Then there are munitions, 1,300 American laser and GPS guided bombs. Several warships are also on the way.  [Strategy Page]

I’m reading the tea leaves here, but it makes you wonder with both the UAE and Israel trying to build up their missile defenses if they are expecting some kind of military action against Iran’s nuclear program in the near future?