Abu Dhabi, built on oil revenue, has drafted its own plans. During the
Paris Air Show in June, the Abu Dhabi-owned Mubadala Development Corp.
signed agreements with Boeing and Lockheed Martin to establish an aerospace
and defense industry in Abu Dhabi.
"Abu Dhabi has turned up the heat in the Gulf's aerospace race, going
head to head with fellow emirate Dubai in a bid to become the region's
leading aviation industry hub," the Oxford Business Group said in a briefing
on June 22.
The competing aerospace ventures involve the investment of tens of billions of dollars
each to establish aerospace and defense centers. The centers would be
controlled by the ruling families in each emirate.
"Despite more than 30 years as a country, the UAE remains a collection
of separate emirates," a Western diplomat based in the Gulf said. "There is
little
cooperation between the emirates, and there remains an intense rivalry
between Dubai and Abu Dhabi."
Officials said Dubai, host of a major biannual aerospace exhibition,
would invest about $80 billion over the next decade in an effort to
transform the emirate into a regional aviation hub. They said the project
would include the construction of a $33 billion airport, envisioned as the
largest in the world.
At a briefing on June 19, Al Maktoum, who is also chairman of the
Emirates Group, said Dubai would become a global aviation and aerospace
center. He
said DAE has signed a strategic partnership with U.S. defense major Boeing.
"Our multi-billion-dollar investments in the aviation sector are in line
with this projected growth," Al Maktoum said. "On the other hand, the growth
and
success of Dubai Air Show in attracting some of the biggest names is one
indication of a promising future for these sectors in Dubai."
Under the memorandums of understanding, estimated at being worth $5
billion, Abu Dhabi would become a leading player in the aerospace
industry. The MoUs stipulate the development of UAE capabilities in military
aircraft maintenance, repair, research and development
as well as technical training.
"Mubadala has long expressed an urge to build an aviation capability in
Abu Dhabi, and this is just their latest move," Robert Ziegler, an aviation
analyst at AT Kearney, said.
For his part, Mubadala chief operating officer Waleed Al Mokarrab Al
Muhairi said Abu Dhabi plans to develop maintenance facilities for such
military and
transport aircraft as the F-16 Block 60, Mirage 2000-9, Hawk and PC-7 air
trainers. Mubadala, founded in 2002, owns the Abu Dhabi-based Gulf Aircraft
Maintenance Co., the leading aerospace contractor in the UAE.
"Abu Dhabi, which already has a track record of aviation assets, plans
to be a very active producer and investor in the industry," Mubadala said.
