Contract Awarded for Gripen E/F Fighter Aircraft to Thailand
Overview of the Contract
Saab has entered into an agreement with the Swedish Defence Materiel Administration (FMV) to supply the Royal Thai Air Force (RTAF) with four Gripen E/F fighter jets. The contract, announced on 25 August, is valued at approximately SEK5.3 billion (USD551.3 million). The scheduled delivery of these aircraft is set between 2025 and 2030.
Details of the Acquisition
The contract encompasses:
- Three Gripen E aircraft
- One Gripen F aircraft
- Associated equipment, support, and training services
The RTAF initially endorsed the Gripen E/F selection in August 2024. Additional components of the procurement, including offsets and industrial partnerships, were formalized in May 2025.
Long-Term Offset Strategy
In conjunction with the fighter procurement, Saab has committed to a long-term offset initiative that aims to enhance Thailand’s defense infrastructure. This package promises:
- Significant transfer of defense technology
- Industrial collaboration in various sectors
Saab has articulated that this cooperation will foster new investments that span multiple sectors within the Thai economy.
Strategic Importance of the Offset Policy
The Thai Ministry of Foreign Affairs highlighted that the implemented offset strategy is expected to bolster Thailand’s defense capabilities while paving the way for cooperative opportunities in critical areas, including:
- Education and skills development
- Technology transfer
- Innovations in food and agriculture
- Green transition initiatives
- Cybersecurity enhancements
This comprehensive approach aims to align military procurement with broader socio-economic development objectives.
Policy Context and Budgetary Approval
The Thai cabinet sanctioned the procurement of these four Gripen E/F aircraft on 5 August, allocating THB19.5 billion (USD600 million) for this strategic acquisition. This decision followed a recent resolution of a border conflict with Cambodia, underscoring the urgency of enhancing regional defense readiness.
Implications for Future Engagement
The procurement of the Gripen E/F aircraft not only reflects Thailand’s commitment to modernize its air force but also signifies an opportunity for multifaceted partnerships that extend beyond defense. Through technology transfer and industrial collaboration, this program is poised to lay a robust foundation for Thailand’s long-term economic and strategic objectives.
