Dubai Aerospace Enterprise’s (DAE) high-profile debut at last week’s Asian Aerospace – complete with basketball court-sized booth, catwalk models and no-expense-spared publicity – took even seasoned watchers of the ambitious emirate by surprise.

DAE Al Malik W200
Al Malik: DAE is aiming high
Foreign aerospace executives based in the city and paid to second-guess the intentions of flag-carrier Emirates had failed to spot that the Dubai government and six other organisations were plotting to launch an aerospace, aircraft leasing and aviation services conglomerate backed by $15 billion of local money.

DAE groups five businesses – widebody aircraft leasing; airport construction and operations; aerospace training; maintenance, repair and overhaul (MRO); and component manufacturing – and its owners plan that most of them will be top-three players in their sector within a decade.

The emirate and its royal rulers – often dubbed Dubai Corp and its board of directors – are determined to diversify the economy and build on the brand image which its fast-growing airline, airport, hotel and tourism sectors helped create.

Although the emirate has few oil and gas reserves compared with its neighbours, the rising oil price means the region’s elite have plenty of cash with which to speculate and the ruling Al Maktoums’ business acumen has made Dubai an attractive investment opportunity to many.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates, is also chairman of the new company and says DAE will “leverage the region’s financial strength and liquidity…and capitalise on our ability to form international partnerships at the highest level”.

The businesses, although diverse, are complementary. Although DAE will give few details, the leasing operation is likely to launch its fleet using sale and lease-back deals with local airlines and acquire older aircraft from Emirates and lease them to new airlines in India, China and elsewhere in Asia. Emirates is responsible for 10% of the current widebody backlog, and Middle Eastern airlines for 60%. “Our immediate focus is in leasing and we are hoping to begin business this year,” says Rashid Al Malik, DAE project director. “We are aiming to be number three in the widebody leasing market.”

Its airport business will also target China and India, where Al Malik anticipates there will be demand for up to 100 greenfield airports over the next 10 years. DAE aims to both build and run the airports.

The training activities will focus on a new aerospace university campus being built next to Dubai’s new Jebel Ali airport, which opens next year. The university will offer postgraduate degrees and apprenticeships and aim to attract students from around the world.

Also set for launch before the end of this year is an MRO division. Although Emirates has its own largely in-house maintenance operation, Al Malik says DAE wants a “global presence”. Again, the Middle Eastern and Indian markets seem the most likely targets.

The manufacturing operation will come on-stream within three years, says Al Malik, with facilities in Dubai and “internationally, depending on opportunities”.

Businesses in space services, aircraft brokerage, events and aviation IT are also planned.

Source: Flight International

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