Saab Canada’s Defence Investment Agency (DIA) has signed a non-binding term sheet covering detailed negotiations over a possible GlobalEye airborne early warning and control (AEW&C) acquisition for the Royal Canadian Air Force (RCAF).
The agreement follows Canada’s decision on 27 May 2026 to name Saab its preferred supplier for a future AEW&C capability. It does not amount to a procurement contract or commit Canada to buying the aircraft.
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Instead, the document establishes the scope for discussions on a Canadian configuration and development programme.
The talks will cover industrial participation, delivery scheduling, capability development and programme execution.
Under current plans, Canada intends to acquire six GlobalEye aircraft under the proposed programme, together with associated systems, training and support.
Saab said the configuration would be developed around the RCAF’S operational requirements.
Saab president and chief executive Micael Johansson said: “The term-sheet agreement reflects the strong collaboration between Saab and Canada and establishes a clear framework for the next phase of our engagement. With a well-defined scope in place, we are well positioned to continue discussions and demonstrate how Saab’s proven and highly capable AEW&C solution can meet Canada’s requirements.”
GlobalEye, which is built on the Bombardier Global 6500 aircraft, is an advanced AEWC solution combining active and passive sensors to detect and identify threats including aircraft, missiles and drones.
The system is designed to function as an airborne command and control centre.
In a statement issued on 25 September, the DIA said the proposed capability would improve Canada’s situational awareness and support its contributions to NORAD modernisation and continental defence.
The agency said that, if acquired, the system would be used to detect and deter threats in the Arctic and other areas, supporting Canada’s security.
The project is also intended to create industrial opportunities in Canada. The government’s stated objective is to establish the country as a centre for future missionisation, and support activities based on the Bombardier Global 6500 platform.
The DIA said this approach could support skilled employment, technology integration and participation by Canadian suppliers, as well as potential future exports of Canadian-built GlobalEye aircraft.
The project is also aligned with Canada’s Defence Industrial Strategy and the government’s “Build-Partner-Buy” framework, which prioritises proven, off-the-shelf equipment from trusted allies, according to the agency.
Canada defence procurement secretary of state Stephen Fuhr said: “Canada’s approach to defence procurement must deliver more than military equipment. It must defend Canadians while strengthening our economy, growing Canadian industrial capacity, and opening new opportunities for Canadian companies to compete globally.
“The term sheet agreement reflects the principles of the DIS by pursuing partnerships that support Canadian jobs, innovation, and long-term economic growth while ensuring we acquire capabilities from trusted partners when they are needed.”
Saab’s GlobalEye has been selected, or is under consideration, by several allied countries and organisations, including Nato, Sweden, France, and the United Arab Emirates.
Earlier this month, the Netherlands signed a letter of intent with Sweden to explore acquiring Saab GlobalEye AEW&C aircraft for air and maritime surveillance, although no binding contract has been concluded.
