Mubadala

Press Releases

Abu Dhabi’s Mubadala signs MOU with Boeing

Mubadala Development Company (Mubadala), a strategic investment and development vehicle established and wholly-owned by the Government of the Emirate of Abu Dhabi, today signed a Memorandum of Understanding (MOU) with The Boeing Company to forge an alliance to further the emirate’s emerging aerospace strategy.

18 June 2007

Mubadala Development Company (Mubadala), a strategic investment and development vehicle established and wholly-owned by the Government of the Emirate of Abu Dhabi, today signed a Memorandum of Understanding (MOU) with The Boeing Company to forge an alliance to further the emirate’s emerging aerospace strategy.

The MOU was signed at the Paris air show by Waleed Al Mokarrab Al Muhairi, COO of Mubadala, and the leaders of the aerospace giant’s two biggest business units, Jim Albaugh, President and CEO of Boeing Integrated Defense Systems, and Scott Carson, President and CEO of Boeing Commercial Airplanes. “This MOU reflects our mutual interest to identify, evaluate, research and define potential future projects in Abu Dhabi across a number of aerospace segments,” said Al Muhairi. “We view this partnership as a significant step forward in our strategy to develop sustainable aerospace capabilities in Abu Dhabi and to further add synergies to develop a cluster dedicated to advanced materials and composites.”

The MOU sets up a framework for discussion where Boeing provides strategic guidance to Mubadala on the implementation of its aerospace strategy. Primarily, the MOU allows for the joint identification of potential partners and suppliers to become directly involved in the production of advanced material aerospace components and raw materials in Abu Dhabi. Together with Mubadala, Boeing will help to develop an Abu Dhabi-based aerospace Research and Development Center. “Boeing recognizes the value of forming cooperative agreements with our Middle East stakeholders,” said Albaugh. “We have focused our regional efforts in a way that allows us to better determine future opportunities that may arise across our entire enterprise. This MOU with Mubadala demonstrates our belief in the viability of the Middle East’s aerospace sector. We are encouraged by future prospects where we can work together with Abu Dhabi.”

Mubadala’s entry into aerospace investment marks a major change of emphasis. Until now, the region has been a very large purchaser of aircraft, but has not played a significant role in aerospace investment. Now, in a sign of the Gulf states’ growing self-confidence, Abu Dhabi – which already has a track record of aviation assets - plans to be a very active producer and investor in the industry. Mubadala’s entry into aerospace will be organised in carefully planned stages and is likely to involve significant investment in the first few years. Its strategy is to negotiate investment and technology-sharing partnerships with leading international businesses that complements its existing aerospace holdings (GAMCO, SRT, Piaggio, Horizon).

The objective is to diversify away from heavy reliance on oil and energy and to develop the sustainability of a broad-based economy for the fast-growing United Arab Emirates. Human resource development will be a key focus in the aerospace Centre of Excellence. UAE technician and design engineering capability will be enhanced through an aerostructures joint venture, while a proposed Research & Development facility will provide an outlet for academics and chemical engineers in the UAE to exercise their capabilities for advanced material applications.