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Abu Dhabi, Dubai Gearing Up to Become Global Aviation Hub
Dec 10, 2009

Rapidly growing aerospace industry in the United Arab Emirates, on the back of extensive investments and expansion plans, will possibly help the region to soon become the industry’s global hub.
 
The Dubai and Abu Dhabi governments are showing keen interest in the manufacturing processes of aircrafts on a commercial scale. Consequently, UAE will soon join the global aviation supply chain, as reported by gulfnews.com.
 
To gain access to aviation technologies, the governments have been moving ahead with part-acquisitions or joint ventures of global aviation assets. With this, the options for technology transfers, which will further stimulate the Emirate’s prospects for a considerable role in the global aviation industry, have been kept open.
 
It is expected that investments in the airline and aviation industry of the UAE will touch Dh550 Billion. This includes UAE’s aircraft order book that crosses $50 Billion (Dh183.7 Billion) along with the combined (aircraft and engines) order book of Etihad that is worth around $60 Billion, the $30 Billion investment in airport and related developments by the government of Dubai, and the redevelopment project of the Abu Dhabi International Airport worth $7 Billion.
 
Though the aerospace industry in the UAE is in its nascent stage, experts said that soon the Emirate’s firms would set up their operations overseas, thereby moving nearer to the US as well as other markets.
 
Meanwhile, the Dubai Airshow, a five-day long event started, which commenced on November 15, 2009, attracted a mix of politicians and business leaders for luring heavy defense budgets and big aircraft orders.
 
Huge investments by these potential event visitors will be made in infrastructure, an engineering centre, repair and overhaul (MRO), composite manufacturing, human resources development, maintenance, and a research centre that will offer extensive technological capability and value.
 
Furthermore, the Dubai Aviation City Corporation-DAAC-noted that exclusive investment and business opportunities by the body bring in considerable profits to the whole value-chain of the worldwide aviation industry. This includes executive aviation firms, aircraft manufacturers, MRO centers and others.
 
According to a Research Analyst at RNCOS, “The aerospace industry in the UAE is growing at a fast pace with huge investment and expansion plans. The industry has set an aggressive target to achieve, and this will help the Emirates to become a global aviation hub. Meanwhile, it will also help the country’s economic base to expand and add to Abu Dhabi’s economic growth and diversification.”
 
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