Aircraft maintenance companies and investors are banking on a major expansion in the Middle East in the next decade, amid forecasts that annual revenues could double to almost US$5 billion (Dh18.36bn) by 2020.
Mubadala Development, one of Abu Dhabi's largest investment vehicles, is moving to capitalise on the expected growth, while smaller players from Dubai to Fujairah are setting up new facilities.
Mubadala believes the regional market will grow from $2.3bn to $4.8bn by the end of the decade, even as this year looks to be one of modest recovery from the recession.
The growth in aircraft maintenance, repair and overhaul (MRO) is being driven by the expanding fleets of Middle East airlines, particularly the big three Gulf-based long-haul specialists Emirates Airline, Etihad Airways and Qatar Airways, which are expected to receive about 40 new aircraft a year over the coming decade.
"The number of aviation MRO firms is growing and this is not surprising, with new aircraft deliveries and record traffic figures at airports here," said Sheikh Ahmed bin Saeed Al Maktoum at the opening of the MRO Middle East 2010 exhibition and conference yesterday in Dubai.
Sheikh Ahmed oversees Dubai's aviation sector including Emirates, Dubai Airports and the Department of Civil Aviation.
Mubadala, through its maintenance companies Abu Dhabi Aircraft Technologies (ADAT) and the Swiss-based SR Technics, is expanding its capabilities in the Middle East and Europe to provide financing and supply-chain management for its components and engine maintenance businesses.
It is also considering adding new business lines such as an MRO unit for business jets, and a VIP interiors company.
Mubadala's plans also extend beyond the region. It is embarking on expansion into the Americas and Asia-Pacific over the next two to five years, said Homaid al Shemmari, the executive director of aerospace at the company.
It would do this by both acquiring existing MRO companies and establishing its subsidiary firms in new facilities, Mr al Shemmari said. "Each region has its own culture and business environment."
ADAT has been a prime beneficiary of the growth of Etihad, while Emirates has its own in-house engineering centre. Qatar Airways has outsourced its maintenance needs to the private sector, including Lufthansa Technik.
But newcomers are expected soon. Europe Aviation, a maintenance firm based in Paris, plans to open its $25m maintenance centre at Fujairah International Airport by October, and will initially service planes such as the Boeing 737 and the Airbus A330.
The company will focus on cargo airlines in the region and also hopes to capitalise on a number of low-cost carriers rumoured to be setting up at airports such as Al Ain International Airport and Dubai International Airport.
Nine business jet maintenance companies, including Livewel and Jet Aviation, are expected to start building facilities at the new Al Maktoum International Airport in Jebel Ali when it opens in June, officials said.
But the rosy long-term forecasts do mask a grim reality. Worldwide, airlines have grounded aircraft and cut flights to deal with a fall in air travel demand and the resulting financial losses.
This has led them to defer aircraft maintenance, said John Byers, the chief executive of ADAT.
"But the Middle East will be a key emerging market," Mr Byers said.
The company has increased its revenues by 35 per cent in three years and is doubling its aircraft hangar space at Abu Dhabi International Airport after receiving a $500m maintenance contract with Etihad.
Its capital expansion projects include a new line maintenance centre, a paint hangar and an A380 superjumbo hangar.
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Starring: Jamie Foxx, Angela Bassett, Tina Fey
Directed by: Pete Doctor
Rating: 4 stars
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m
7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
The National selections
6.30pm: Chaddad
7.05pm: Down On Da Bayou
7.40pm: Mass Media
8.15pm: Rafal
8.50pm: Yulong Warrior
9.25pm: Chiefdom
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
Rafael Nadal's record at the MWTC
2009 Finalist
2010 Champion
Jan 2011 Champion
Dec 2011 Semi-finalist
Dec 2012 Did not play
Dec 2013 Semi-finalist
2015 Semi-finalist
Jan 2016 Champion
Dec 2016 Champion
2017 Did not play
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Killing of Qassem Suleimani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
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MATCH INFO
Al Jazira 3 (O Abdulrahman 43', Kenno 82', Mabkhout 90 4')
Al Ain 1 (Laba 39')
Red cards: Bandar Al Ahbabi (Al Ain)
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Directed by:Tom Beard
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
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The specs
Engine: 6.2-litre V8
Power: 502hp at 7,600rpm
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The years Ramadan fell in May
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
