US Approves $1.96 Billion Sale of Rocket Kits to Saudi Arabia

The United States has cleared a significant arms sale to Saudi Arabia, approving the potential sale of up to 20,000 Advanced Precision Kill Weapon System II (APKWS II) laser-guided rocket kits. The deal, valued at approximately $1.96 billion, is intended to bolster Saudi Arabia's defenses against unmanned aerial vehicles and improve its precision strike capabilities. The approval was announced by the U.S. Department of State on Wednesday, July 15, 2026. Saudi Arabia's request includes 10,000 guidance kits for air-to-air missions and another 10,000 for air-to-ground operations. The package also encompasses related equipment such as rocket launchers, motors, warheads, and training and technical support, though specific quantities for these components were not disclosed. The APKWS II system is designed to transform standard 70mm rockets into precision-guided munitions by adding a laser-seeking guidance kit. This upgrade allows for more accurate targeting, particularly against fast-moving or small targets like drones. The U.S. military has successfully employed similar APKWS II variants, known as FALCO, against unmanned aircraft in the Middle East, integrating them with fighter jets like the F-16 and F-15E Strike Eagle. This potential sale comes at a time of heightened tensions between Saudi Arabia and the Houthi rebels in Yemen. Recent escalations include Houthi missile attacks targeting Saudi airports, which they claimed were retaliation for Saudi-led coalition strikes on Sanaa airport. The Saudi-led coalition reported intercepting missiles aimed at its southern region. This marks the first Houthi-claimed attack on Saudi territory since an informal ceasefire in March 2022. Further complicating the situation, Houthi leader Abdul Malik al-Houthi issued threats on Thursday, July 16, 2026, warning of attacks on Saudi oil facilities and vital infrastructure if Riyadh increases its involvement in the Yemeni conflict. The specific variant of APKWS II, the AGR-20F, is optimized for air-to-air combat against drones, featuring proximity fuses and specialized guidance algorithms.

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The U.S. Department of State approved the potential sale of up to 20,000 APKWS II guidance kits for air-to-air and air-to-ground missions.