Dubai: The UAE is soon to become part of the global aviation supply chain with the governments of Dubai and Abu Dhabi showing strong interest in aircraft manufacturing processes on a commercial scale.
Both governments have been steaming ahead with joint ventures or part-acquisition of global aviation assets in order to gain access to aviation technologies while keeping options open for technology transfers that will eventually boost the UAE's prospects for a more significant role in the global aviation industry.
Investment in the UAE's airline and aviation industry is expected to soar to Dh550 billion.
This figure includes Emirate's aircraft order book, which exceeds $50 billion (Dh183.7 billion) and Etihad's combined (aircraft and engines) order book worth nearly $60 billion, the Dubai Government's investment in airport and associated developments to the tune of $30 billion and the Abu Dhabi International Airport redevelopment project worth $7 billion.
In addition to these, the Sharjah Government and Air Arabia are also expanding capacities.
Dubai made the first move by acquiring a stake in Doncaster before launching Dubai World Centre (DWC) — the world's biggest purpose-built greenfield aviation city covering 140 square kilometres.
DWC will host the world's biggest airport — DWC Al Maktoum International Airport — and Dubai Aviation City.
In 2006, the Dubai Government launched Dubai Aerospace Enterprise — a Dh55 billion investment vehicle — to attract investment in aviation technologies through joint ventures at the Dubai Aviation City.
Business opportunity
Khalifa Al Zafein, executive chairman of Dubai Aviation City Corporation (DACC), observed: "Dubai Aviation City's unique investment and business opportunities bring significant benefits to the entire value-chain of the global aviation industry, including aircraft manufacturers, executive aviation firms, maintenance, repair and overhaul centres and others."
However, Abu Dhabi, which was slightly late to the game, has been quick to catch up. Mubadala, an Abu Dhabi Government investment vehicle, had earlier launched Strata — an advanced composites and aero structures manufacturing facility — which started a 12-month countdown to becoming a supplier to the global aerospace manufacturing industry.
Strata has set up a 21,600-square metres facility and created 1,000 jobs within a span of only six years. Mubadala has confirmed Dh7.3 billion worth of work packages with partners Airbus, Alenia Aeronautica and FACC.
"The aerospace sector is a key part of the emirate's economic diversification plans which aims to create a high-tech, knowledge intensive economy, and provide career opportunities for the current and future UAE workforce," Mubadala said.
Strata will deliver the first work package — the A330/A340 Flap Track Fairings — from FACC. The transfer plan has been approved by Airbus and the first article inspection is scheduled to take place by end of the third quarter of 2010 in Al Ain.
"Strata is a major milestone for Abu Dhabi in its aspirations to become a leading manufacturing base for the global aerospace industry," said Humaid Al Shemmari, associate director of Mubadala Aerospace.
Subsequent phases of expansion are planned to provide a total facility in excess of 60,000 square metres over the next decade.
