Dubai, fueled by robust oil revenues, is embarking on an ambitious $20 billion venture to establish Dubai Aerospace Enterprise (DAE). This initiative aims to capitalize on the burgeoning demand for air travel in the Middle East and Asia by offering aircraft leasing, airport development, and aircraft component manufacturing. Rashid Al-Malik, the project director, indicated that Dubai Aerospace may procure up to 50 wide-body aircraft from Boeing and Airbus over the next four years, leveraging the emirate’s existing position as the owner of a major Arab airline.
Industry analysts note the strategic advantage of Dubai’s location, given the eastward shift in the aerospace industry’s center of gravity. Governments in the Middle East, including Dubai, Abu Dhabi, and Qatar, have collectively ordered around 300 aircraft for delivery within the next five years, signaling substantial growth in the region’s aviation sector. Dubai Aerospace plans to place its initial aircraft order this year.
DAE will operate as a holding company comprising six specialized subsidiaries, with Sheikh Ahmed bin Saeed al Maktoum, chairman of the Emirates airline group and president of Dubai’s civil aviation department, at its helm. This move builds upon Dubai’s existing aviation infrastructure, including Dubai International Airport and the globally recognized Emirates airline.
The overarching vision is to create a comprehensive aviation hub encompassing aircraft leasing and maintenance, personnel training at a new university, airport operations, and even aircraft manufacturing. By leveraging Emirates’ standing as a major aircraft purchaser, Dubai Aerospace Enterprise aims to establish strong relationships with leading manufacturers like Boeing and Airbus, solidifying its position in the global aerospace market.