Arms deals with Saudi Arabia have been worth billions to the UK The furore over the SFO's decision to drop a corruption probe into a £6bn arms deal with Saudi Arabia is the latest twist in a 20-year saga. 1986 Defence Secretary Michael Heseltine signs the first phase of the Al Yamamah arms deal with the Saudi government.

The deal covers the supply and support of Tornado and Hawk jets and a massive airbase construction programme, and is estimated to be worth £50bn.

1988

A further formal understanding concerning Al Yamamah is signed between the UK and Saudi Arabia.

1991

Saudi Tornado jets fly alongside RAF Tornado bombers in the First Gulf War.

May 2004

The Guardian newspaper alleges that BAE Systems has won the deal with the aid of a secret slush fund.

It claims Ministry of Defence police are investigating payments totalling £60m made during the course of the Al Yamamah deal by BAE Systems.

November 2004

BAE Systems confirms it is being investigated by the Serious Fraud Office (SFO), but strenuously denies any wrongdoing.

December 2005

BAE Systems confirms it has agreed to supply Saudi Arabia with 72 Eurofighter jets.

Talks to finalise the deal continue throughout 2006.

1 December 2006

French planemaker Dassault confirms it is in talks to sell the Rafale, a key rival to the Eurofighter, to Saudi Arabia.

BAE Systems admits that talks with Saudi Arabia over the Eurofighter deal have slowed down.

14 December 2006

The Attorney General, Lord Goldsmith, announces that the SFO is dropping its investigation.

6 January 2007

Saudi Arabia's Defence Minister Crown Prince Sultan bin Abdul Aziz Al Saud says the country is looking forward to gaining delivery of the 72 Eurofighter jets "very soon".

17 January 2007

OECD says there are "serious concerns" about the British probe being dropped.

29 April 2007

MPs warn that Britain's reputation for fighting corruption may have suffered "severe damage" because of the dropping of the fraud inquiry.

7 June 2007

A BBC investigation finds that ex-Saudi ambassador to the US, Prince Bandar bin Sultan - who negotiated a £40bn arms deal between Britain and Saudi Arabia - received secret payments for over a decade. 

With acknowledgements toBBC News.