MBDA signed a Memorandum of Understanding (MoU) with the government of Qatar to supply a coastal defense system for the Qatar Emiri Naval Force (QENF), allowing for a $725 million contract in the short term, the company said Wednesday.

The coastal defense system will allow the QENF to monitor maritime coastal traffic and prevent hostile ships from reaching and threatening Qatar’s territorial waters.

Left to right: Antonio Perfetti, Executive Group Director Sales and Business Development at MBDA; Antoine Bouvier, CEO of MBDA; and General Ibrahim Saad Al Kubaisi, deputy commander of the Qatar Emiri Naval Force signed  the Memorandum of Understanding on a new Missile Coastal Defence System. Photo: MBDA.
Left to right: Antonio Perfetti, Executive Group Director Sales and Business Development at MBDA; Antoine Bouvier, CEO of MBDA; and General Ibrahim Saad Al Kubaisi, deputy commander of the Qatar Emiri Naval Force signed the Memorandum of Understanding on a new Missile Coastal Defence System. Photo: MBDA.

MBDA highlighted the coastal defense system can deploy two munitions: Exocet MM40 Block 3 and Marte ER (extended range of the Marte) missiles. The system can either work in an autonomous mode with its own radar or by data-linking to a higher level within a wider coastal surveillance network.

“This MoU represents the first step toward the signing of a contract for this new and innovative coastal missile system. This is a further confirmation of the trust placed by the Qatar Armed Forces in MBDA for its defense requirements,” Antoine Bouvier, CEO of MBDA, said in a statement.

“This agreement between MBDA and the QENF also shows another important aspect: a great multinational team spirit that allows MBDA to face any challenge,” Antonio Perfetti, executive group director for sales and business development and managing director at MBDA Italia, added.

The MoU was signed at the Doha International Maritime Defense Exhibition and Conference (DIMDEX) 2016, held March 29-31. MBDA displayed a full-size model of the coastal missile system at the conference.

MBDA is jointly held by Airbus (37.5 percent), BAE Systems (37.5 percent), and Finmeccanica (25 percent).