Brazil’s choice of Gripen opens Bric possibilities

Brazil's snap decision last month, after 10 years of deliberations, to choose the Saab Gripen jet fighter ahead of American and French competitors, is the first time a deal of this size has been done without involving superpowers or United Nations Security Council members.

The deal, at the initial stage worth $4.5bn for 36 Gripen NGs, could open up the possibility for deliveries of 100 or more aircraft, and also widens access for South African defence and other technology exports, in particular among fellow Brics countries (Brazil, Russia, India, China, South Africa).

The market has suddenly moved from seeing a half-empty glass to a more than half-full one. Saab’s share price has shot up 30% in Stockholm over the past two weeks.

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