$15bn Dubai Aerospace Enterprise: an amazing business vision

Imitation is the sincerest form of flattery and it is noticeable that the other emirates of the UAE are gradually rolling out plans for freehold real estate, airlines, media zones, tourism and many of the other business concepts that Dubai has pioneered over the past few years. But Dubai is not about to stand still.

Step forward the latest initiative, the Dubai Aerospace Enterprise, with a projected investment of $15 billion by 2015. The business concept here is to create a new hub for aviation, from the leasing and maintenance of planes to training personnel at a new university to operating other airports and even manufacturing aircraft. As His Highness Sheikh Ahmed bin Saeed Al Maktoum commented:

'From its base in Dubai, DAE will be uniquely positioned to drive the development of the industry forward across all markets. We have shown how much can be achieved. Emirates is one of the great airlines of the world. With the forthcoming Jebel Ali airport complex we will have the world's greatest facility. The Dubai Air Show is one of the great feature events of the global aviation calendar'.

Aviation booms

It clearly makes excellent business sense to lever off Emirates position as a major buyer of aircraft to promote the DAE to the aircraft manufacturers like Boeing and Airbus. Moreover, the other major airlines of the region are big customers for new planes, and will appreciate such aviation services on their doorstep.

Indeed, the Middle East and North Africa region will take 58% of wide bodied aircraft deliveries between 2004 and 2023, and 50% of recent new aircraft orders have been in the Middle East as the regional carriers are in the process of doubling their fleets.

The DAE has a phased business plan to create an aviation hub at the new Jebel Ali airport complex, and has established six operational subsidiaries across 14 industry segments. Further announcements are to follow for each business sector as this bold business plan is transformed into reality.

Dubai Inc. plan

By 2015 the DAE is expected to employ 30,000 people and to have 8,000 students a year passing through its university. This is yet another example of Dubai Inc. spotting a new business opportunity and mobilizing its resources to capitalize on the opening.

In the case of the DAE the founding partners are six Dubai Government owned or part-owned entities: Istithmar, Emaar Properties, Dubai International Capital, Dubai International Financial Centre, Amlak and Dubai Airport Free Zone. Drawing on these combined resources makes good sense, and without this resource base the launch would be much more difficult.