US greenlights nearly $5 billion tank refurbishment deal with Egypt

The US State Department has authorized a potential $4.69 billion Foreign Military Sale (FMS) to Egypt, aimed at refurbishing and upgrading 555 M1A1 Abrams tanks.

The deal, which was officially notified to Congress, includes a wide range of equipment and support services, with the tanks set to be upgraded to the M1A1SA configuration, Caliber.Az reports, citing Defense Security Cooperation Agency.

The proposed sale involves not only the refurbishment of the tanks but also includes components such as thermal imaging systems, smoke grenade launchers, and tank engines, along with extensive support services from both the US government and contractors.

General Dynamics Land Systems, based in Sterling Heights, Michigan, will be the primary contractor overseeing the upgrade.

The US government has stressed that the sale aligns with national security and foreign policy goals by strengthening Egypt’s military capabilities in the Middle East. “This sale will contribute to Egypt’s military modernization, helping to improve its ability to counter current and future threats,” said a State Department spokesperson. “It also reinforces our strategic partnership with Egypt, which remains a key ally in the region.”

Egypt is currently the only country, other than the US, that produces the M1A1 Abrams. The US government believes the refurbishment program will help create economies of scale, reducing the cost of M1A1 components for both Egypt and US defence partners.

A US official added, “The upgrading of Egypt’s M1A1 fleet will enhance interoperability with US forces and other allies, ensuring continued cooperation in regional security efforts.”

The refurbishment will be carried out at Egypt's Tank Plant in Cairo, with the process expected to span several years. The deal also includes up to twenty US government and contractor representatives being deployed semi-annually to oversee the project.

While the sale is not expected to alter the military balance in the region, it is part of ongoing efforts to maintain Egypt's technological edge and ensure the sustainability of its armoured forces. The deal is set to have no adverse impact on US defence readiness, the State Department confirmed.

The final cost of the deal will depend on the final requirements and sales agreements, which are still to be concluded.

By Aghakazim Guliyev