Press Releases

Mubadala shares plans: establishing strong aerospace industry in Abu Dhabi

Mubadala Development Company (Mubadala), a strategic investment and development vehicle established and wholly-owned by the Government of the Emirate of Abu Dhabi, is making great strides towards diversifying the economy of the Emirate.

10 November 2007

Mubadala Development Company (Mubadala), a strategic investment and development vehicle established and wholly-owned by the Government of the Emirate of Abu Dhabi, is making great strides towards diversifying the economy of the Emirate.

A key objective of this strategy lies within the establishment of a solid and sustainable aerospace industry in Abu Dhabi. By participating in this week’s Dubai Air Show, Mubadala will be discussing activities and its approach to generating sustainable aerospace developments in Abu Dhabi. Also participating along with Mubadala at the Show are several of their affiliates and wholly-owned subsidiaries that represent different aspects of the industry. Abu Dhabi Aircraft Technologies, a wholly-owned company of Mubadala, was launched last week with plans set to be the foremost independent maintenance, repair and overhaul (MRO) service provider.

The former Gulf Aircraft Maintenance Company (GAMCO) has been repositioned to expand their current capabilities to provide more quality services to the growing number of fleets in the region. Horizon International Flight Academy, which was established in Al Ain a few years ago to train civilian and military pilots, graduate trainers and technicians, is available to discuss the expansion of its training portfolio to accommodate the growing industry in the region. Specifically, the induction of King Air 350 into the Horizon fleet will provide training and aviation services including type rating, aerial surveillance, airport calibration, search and rescue, and controller training. Horizon is 100% owned by Mubadala.

Piaggio Aero Industries will be visiting from Italy to announce activities related to their design, manufacturing and sales of business jet aircrafts. In 2006, Mubadala purchased a 35% stake in the international company.

Abu Dhabi UAV Investments (AD UAVI) was established earlier this year to design and manufacture unmanned aerial vehicle systems. AD UAVI is one of the first of its kind in the GCC region and is available to talk about a number of civilian applications that are in growing demand in the GCC and elsewhere globally. Mubadala owns 95% of Abu Dhabi UAV Investments.

SR Technics, an independent provider of technical services in the aircraft, component and engine areas, will also be at the Dubai Air Show. Mubadala has a 40% interest in the company as part of a consortium. Along with partners Dubai Aerospace Enterprise (DAE) and Istithmar, the consortium is helping to bring the Zurich-based company that currently has facilities throughout Europe into regions experiencing fast growth in the industry.

“The companies at the Show represent the calculated approach that Mubadala is taking to develop our aerospace strategy for Abu Dhabi,” said Waleed Al Mokarrab Al Muhairi the COO of Mubadala.

“The strategy is quite evident by the participation of our group companies which are represented here today. We intend to continue with this approach towards developing clusters in this sector by enhancing the different platforms that exist today.

“We see the need for outstanding MRO services as the number of airline and business aviation fleets are rapidly growing, especially in India, China and the Middle East. Abu Dhabi Aircraft Technologies and SR Technics are addressing this demand and meeting customer needs by providing total MRO solutions and focusing on customer care.

“Of course high quality education and training programs and facilities are mandatory as the market expands. Horizon is already providing some of these services to the market and Mubadala is looking at several other initiatives – which will be announced during this week’s Show - to enhance Horizon’s capabilities and address the increased market demand.

“Mubadala’s goal also includes creating opportunities to complement aviation manufacturing businesses in the composites arena. Plans to achieve this include acquiring key assets in the European and Asian markets and expanding their reach.

“Finally, a very important area to expand in the aerospace sector is the Business Jet/GA Original Equipment Manufacturers platform. A key factor in Mubadala’s interest in Piaggio Aero is the opportunity to begin manufacturing aircraft in Abu Dhabi soon.

“Building the Emirate’s aerospace capabilities by the year 2020 is a crucial component towards diversifying its economy. Mubadala already has a firm presence in the emerging aerospace industry of the region through these outstanding companies that will be at the Air Show this week.

“We will continue to leverage these valuable assets to grow our interest in the industry. Mubadala’s investment strategy is based on a double bottom line – investing in companies and projects that will bring strong financial returns as well as provide incremental benefits to Abu Dhabi and its people.”