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The six consortium partners - Emaar, Dnata, Mercator, Emirates National Oil Company (ENOC), Amlak Finance and Dubai Airports Free Zone Authority (DAFZA) - will add their specialist expertise to the DAE Airports package to offer a commercial cutting edge in negotiations.
The success of the consortium will be driven by an unprecedented growth of the Airport business. According to a study conducted by A.T. Kearney - the global management consulting firm - AsiaPac and Middle East Airport Markets are expected to grow by 8-9% p.a. over the next 10 years. The partnership will target the US$ 400 billion airport development and operations market in the emerging economies, primarily in the Middle East, India and China.
Dr Mohammed Al Zarouni, Managing Director of DAE and Director General of DAFZA, said:
"The signing of the MoU adds up to a 'win-win' proposition not only for the members of the consortium but also for customers. Our clients from around the globe, particularly in this region and the emerging markets of Asia, are being offered a one-stop solution for their airport needs. Through DAE Airports, they will have access to a wide range of capabilities, whether this is a new airport on a greenfield site, a sophisticated operations upgrade at an existing site, or a privatization."
"This MoU has brought together the best available expertise in key areas that are integral to airport development and operations. Emaar, the most valuable real estate company in the world, offers unparalleled expertise in construction. Amlak does the same in finance. Dnata, Mercator and ENOC are bywords for excellence in ground handling, aviation and airport IT systems, and airline fuelling - their areas of operation - while DAFZA's commercial services are first class."
Under the terms of the agreement, DAE Airports will identify the targets, structure deals and bid jointly with its consortium partners. The focus will be on developing new airports in regional emerging markets and on Build - Own - Operate - Transfer (BOOT) deals.
DAE Airports will lead the way not only in bid negotiations but also in organizing finance, master planning projects and acting as general contractor for airport operations. Where ownership is an option, it will act as an equity holder for the airport.
The partners are committed to supporting all DAE Airports activities and to offering their specialist skills. Emaar, for example, will provide construction and real estate management expertise but will also supervise and act as general contractor. Emaar will take on the real estate management side of client airports' hotels, retail facilities and commercial facilities.
Mohammed Al Hashimi, Amlak's CEO, said: " DAE Airports opens new avenues for Amlak Finance and Emaar Properties to capitalize on the expertise we have developed in large scale project infrastructure construction and financing. In addition, it will give us the opportunity to seek fresh opportunities and to add value for our shareholders. We welcome this association with DAE Airports and strongly believe it will be mutually beneficial to both our organizations."
Amlak will team up with DAE Airports to provide long and short term financing for projects through a range of options. These will vary from structured debt to equity finance through local and regional placements.
Dnata will have a key role in winning new business, where its track record of operational excellence in Airport Operations and Cargo is expected to be decisive with potential clients. Dnata will have a crucial role in determining back office design, operations planning and preparation. It will be the general contractor for aviation operations and services such as baggage handling, resource planning, ground handling, passenger and technical services.
Gary Chapman, President of Dnata said, "Dnata will be able to bring to the consortium the considerable expertise that we have built over the years managing the ground handling operations of Dubai International Airport and of a number of other airports around the world. This partnership gives us an exceptional opportunity to further export and leverage the know-how we have acquired. We look forward to an extremely productive partnership with DAE Airports."
Mercator is scheduled to take the lead in designing, developing and implementing airport IT systems and processes, while ENOC will provide expertise for the whole fuelling value chain.
Mr. Tayyeb Al Mulla Chief Executive of ENOC International Refining & Marketing said, "The interest shown by major international companies underscores both the attractiveness of the proposed consortium and the significant economic benefits it can bring to us."
He added, "Customer focus, innovation and quality are the hallmarks of ENOC's management philosophy. We believe that this will add further value to the DAE Airports & reflect our vision to be the reliable & responsible Energy Partner of Choice."
DAFZA will bring its commercial experience, especially the planning and operations of aviation related business and free zone parts to the table.
Rashid Al Malik, DAE Project director commented:
"This MoU will give DAE the launchpad it needs to become a significant player in the global aerospace market. These partners are international, they are the best in their areas and they are guaranteed to ensure that DAE Airports becomes a force to reckon with."
Posted by Janeta Novakovic, Assistant News Editor
