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Aerospace Resource Guide: United Arab Emirates

 

United Arab Emirates Statistics

Summary
Market Entry

Current Market Trends

Current Demand

Main Competitors

Best Prospects
Subsector Focus: Helicopters

Barriers

Trade Events/Associations

CS Contact

Capital: Abu Dhabi
Population:
8.5 millions
GDP USD
: USD 383.8 billion
Currency:
Arab Emirati Dirham (AED)
Language
: Arabic, but English is widely used.

Summary

The United Arab Emirates (UAE) is a nation of seven emirates centrally located in the Arabian Gulf. In an area of 32,278 sq mi, there are 7 international airports, including a giant new facility, Dubai World Central (DWC), as well as Dubai International Airport (DXB) in the emirate of Dubai. Dubai International Airport’s (DXB) passenger traffic for 2013 grew by 15.2 percent as 66.43 million passengers passed through DXB.

Abu Dhabi is also developing a new expansion to its existing airport (AUH); the Midfield terminal (MTC) is due to open in 2017. Abu Dhabi’s airport consists of three terminals with a joint handling capacity of around 12.5 million passengers annually. However, with the construction of the iconic new MRC terminal, the airport’s capacity will eventually reach 47 million passengers annually.

The UAE is leveraging its geographic location and proximity to international trading routes to play a central role in global travel market. The UAE is the home for two global airlines; Emirates & Etihad, and another two low budget airlines, Fly Dubai and Air Arabia.

Market Entry


Foreign firms seeking to sell into the UAE market must have a form of local presence, such as a local agent/distributor. Selection of the right agent is an important decision, as terminating registered agents is a very troublesome process.

Current Market Trends


The UAE aims to be a regional trade hub supporting a strong travel market and intense international business activities.

In terms of fleets, Emirates has more than 100 Boeing 777 & 44 Airbus A 380 that serve 140 destinations. Etihad Airways serves 96 destinations with 83 narrow and wide body aircraft. Fly Dubai has 30 Boeing 737s serving 60 destinations across the Middle East. Private Business jets are also a growing sector in the UAE, and a number of companies compete in this niche, including: www.royaljetgroup.com, www.ajaprivatejets.com, www.rotanajet.com.

The UAE aims to be an aerospace hub by developing aerospace manufacturing capacity through Strata, an advanced composite aerostructures manufacturing facility that produces high quality component aircraft products for original equipment: www.strata.ae

The Advanced Military Maintenance, Repair and Overhaul Center (AMMROC) is a strategic investment arm of the Abu Dhabi Government, and a joint venture with U.S. firms Sikorsky Aerospace Services and Lockheed Martin. AMMROC provides innovative platform solutions for all fixed and rotary-wing aircraft operated by the UAE Armed Forces and other customers in the region: www.ammroc.ae.

Y1A is Yahsat’s first satellite launched which will deliver affordable satellite broadband services to 28 countries in the Middle East, Africa and South West Asia. Yahsat is fully owned by Mubadala: www.yahsat.ae.

Current Demand


There is high demand for almost all products and services related to the Aerospace industry; from aircraft to the baggage handling industry to related industries.

Competitors


The UAE is a very open market. Due to its geographical location and balanced diplomatic ties, the competition is from all over the globe.

Best Prospects


Firms providing best-in-class solutions to aerospace, airport and air freight customers will find a promising albeit competitive marketplace in UAE.

Subsector Focus: Helicopters


Helicopters are widely used in the UAE for commercial and military applications. The UAE has the following types of helicopters: IAR 330 Puma (Recently upgraded to IAR 330SM), Sikorsky UH-60 Black Hawk, AH-64A Apache, Chinook, Eurocopter Fennec, and Bell 214.

Horizon International Flight Academy was built in Al Ain for pilot training in the UAE & the Middle East: www.horizonuae.ae.

Barriers


As per the “Company formation law” the foreign partner cannot have more than 49% ownership. In the case of agents and distributors, terminating a registered agent is a very troublesome process.

Trade Events/Associations

Global Aerospace Summit

April 7-8, 2014 | Abu Dhabi
www.aerospacesummit.com/

The Global Aerospace Summit is an invitation-only event for C-level executives, senior decision makers and government officials involved with the aerospace, aviation, defense and space industries. The Summit was first launched in 2013.

Dubai Airshow

November 8-12, 2015 | Dubai
www.dubaiairshow.aero

The Dubai Airshow is the biggest aviation event in the Middle East, connecting aviation professionals across all areas of the industry to facilitate successful global trade.

Abu Dhabi Air Expo

Late February 2015 | Abu Dhabi
http://www.adairexpo.com/

Abu Dhabi Air Expo 2013 edition was the third, and the expo is slowly growing.

U.S. Commercial Service Contact Information:


In Abu Dhabi office: In Dubai office:
Mr. George Messiha Mr. Akhilesh Sathyavan
Commercial Specialist Commercial Specialist
George.Messiha@trade.gov
Akhilesh.Sathayavan@trade.gov

+971 2 414 2524 +971 4 309 4086


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