Dubai Airshow 2021: Tawazun Economic Council and Airbus to form Abu Dhabi subsidiary

The Tawazun Economic Council signed a preliminary agreement with aeroplane manufacturer Airbus to establish a subsidiary in Abu Dhabi, expanding the partnership between the two companies.

The formation of the subsidiary is part of Tawazun’s efforts to attract and promote long-term partnerships with major companies in the defence, aviation and aerospace sector, the UAE company said in a statement on Sunday at the Dubai Airshow.

The companies also aim to co-operate to develop refuelling solutions for military air systems, unmanned aerial systems, a helicopter flight lab and research and development for the VSR-700, an unmanned aerial vehicle.

“Part of Tawazun’s role is to invest in key social infrastructure and create globally integrated industry sectors for the benefit of the UAE through local and global partnerships. We are very happy that our partnership with Airbus will serve our shared interests and potentially help position the UAE as a hub within the sector,” Tareq Al Hosani, chief executive of Tawazun, said.

Deals worth billions of dollars were agreed on the first day of the Dubai Airshow, the first major global aerospace exhibition since the onset of the Covid-19 pandemic. The UAE Ministry of Defence awarded contracts worth Dh5.23 billion ($1.42bn) while GAL, a UAE-based aircraft maintenance, repair and overhaul service provider, was awarded a Dh11bn contract by the UAE Armed Forces.

Separately, Tawazun said it had signed a letter of intent to purchase 100 VRT500 helicopters from aerospace company Aeroter for €216.9 million ($248.2m). Deliveries of the helicopters, which will be used by the government, are expected by the end of 2023.

“We are pleased to close this contract for VRT’s single light engine helicopter, which is characterised by various design advantages in terms of safety, performance and cost-effectiveness, to meet the customers’ expectations,” Abdulla Al Jaabri, deputy chairman of Aeroter, said.

The agreement also entails the setting up of a helicopter service centre in Abu Dhabi, in collaboration with an Emirati company, Ahmed Al Harmoodi, chief acquisition management officer of Tawazun, said.

“Aeroter is currently engaged in talks with a number of national companies on forming a strategic partnership to operate and manage the centre.”

Tawazun was formed in 1992 and has supported the creation of more than 111 companies and investment vehicles in 12 sectors. It now serves as a catalyst for economic growth and the development of the UAE defence and security industry.