More significant than any isolated tragedy for investors, is Saudi Arabia’s military activity in Yemen. Since 2015, it has waged war there against the Houthi insurgent movement, deterring countries such as the Netherlands and Belgium from selling arms to Saudi Arabia. The kingdom has also been accused by monitors of recklessly bombing civilians in the region. Understanding which defence stocks have exposure to the country is therefore key to investors. The chief candidate is BAE Systems (BA), which counted Saudi Arabia as its third-biggest market in 2017, when it generated16 per cent of revenues. It supplies Typhoon and Tornado jets to Saudi Arabia, via an agreement with the UK government, while its business there is monitored under the Ministry of Defence Saudi Armed Forces Projects. Rolls-Royce (RR) also sells goods to the kingdom with the permission of the UK government, supplying engines for military aircraft. The manufacturer doesn’t solely rely on the government to keep an eye on events in the region, however. “Even where a licence is granted those decisions are kept under constant review,” said a Rolls-Royce spokesperson.
More significant than any isolated tragedy is Saudi Arabia’s military activity in Yemen Since 2015, it has waged war there against the Houthi insurgent movement The kingdom has also been accused of recklessly bombing civilians Understanding which defence stocks have exposure to the country is therefore key to investors The chief candidate is BAE Systems which counted Saudi Arabia as its third-biggest market in 2017, The manufacturer doesn’t solely rely on the government to keep an eye on events in the region, however. “Even where a licence is granted those decisions are kept under constant review,” said a Rolls-Royce spokesperson