“The U.S. and U.A.E. currently enjoy the world’s fastest growing commercial Aerospace relationship; directly creating and supporting hundreds of thousands of American jobs and enabling the U.A.E. to develop rapidly as a global travel hub for business, trade, and tourism.” – Danny Sebright, President of the U.S.-U.A.E. Business Council

This year’s Dubai Airshow will be the key global showcase for displaying the world’s cutting-edge defense and aerospace technology.  There is growing anticipation for announcements regarding significant orders of commercial aircraft, and Airshow attendance is expected to reach record-breaking numbers. Both of these items illustrate the growing importance of the Gulf region to the civil and defense aerospace industries, and underscore how the mutually-beneficial U.S.-U.A.E. aerospace relationship has grown over the past decade to become a greater source of economic activity and job creation.

U.S.-U.A.E. Aerospace Trade

The U.S. and U.A.E. share one of the fastest growing trade relationships in the world.  From 2011-2012 alone, U.S. exports to the U.A.E. grew by more than 40%, to $22.5 billion, making the U.A.E. America’s largest export market in the broader Middle East; including Turkey and India.

For its part, aviation is a key contributor to the exponential growth of U.S.-U.A.E. trade, accounting for around 30% of total U.S. exports to the U.A.E. last year.  With rapidly growing airlines and increased connectivity with the launch of new air links between the two countries, the commercial aviation relationship supported over 100,000 jobs as well as generated over $16 billion in direct and indirect spending in the U.S. economy in 2012 alone, and continues to grow significantly.  The U.A.E. has emerged as a key partner to America in the maintenance of critical international trade routes and energy security, and is currently one of the largest markets for U.S. military aircraft – with a strong demand for military aircraft equipment, parts, and services.

A Significant Purchaser of Aircraft Manufactured in the U.S.

Home to Emirates Airline, Etihad Airways, and flydubai, the U.A.E. has become a major  consumer of commercial passenger aircraft.  This rapidly growing demand has solidified the U.A.E.’s position as the 3rd largest international market for Boeing.  The U.S.-U.A.E. commercial aviation relationship has grown 1500% since the first direct flight connecting the two countries took off in 2004, establishing the world’s fastest growing aviation partnership.

• Emirates Airline is the world’s largest operator of Boeing’s 777 twin-aisle jetliner and boasts a fleet that includes every model of the 777.

• From 2002 to 2012, Emirates ordered 151 Boeing aircraft worth approximately $47 billion at current list prices.

o During the 2011 Dubai Airshow, Emirates Airline placed an order for 50 Boeing 777-300ERs.  The $18 billion order marked the largest in Boeing’s history.

• Etihad Airways is the largest consumer of Boeing 787 Dreamliners in the Middle East, with 41 airplanes to be delivered between 2014 and 2019; the airline’s most recent order included 10 787s.

• To date, Etihad has also ordered 21 Boeing 777s, in various configurations, with more sales expected.

• One of the U.A.E.’s low-cost carriers, flydubai, operates an all-Boeing fleet of 737-800s; the airline ordered 50 planes in 2008 for $3.74 billion, becoming the region’s largest customer of 737s with 32 currently in service.

o U.S.-based Honeywell provides maintenance support for a key component on flydubai’s growing fleet of Boeing 737-800s.

• GE technologies and expertise are also helping U.A.E. airlines meet their ambitious and impressive growth plans.  Through 2012, the U.A.E. has bought $9.1 billion in jet engines from GE (including Engine Alliance), and current orders total $2.5 billion.

• In five years (2007-12), GE’s engine exports to the U.A.E. have more than quintupled, totaling more than $1 billion.

o There are 200 U.A.E.-carrier airplanes that currently use GE engines.

o GE oversaw the design and construction of the 24,000 square meter Emirates Airline test facility.

o GE90-115B engines help power Etihad Airways’s Boeing 777 aircraft, with next generation GE engines joining the fleet in the coming years.

• Pratt & Whitney also provides significant engine and parts support to U.A.E. airlines and the country’s military.

• Emirates and Etihad Airways purchased a range of American-manufactured airline management services, including: IT hardware and software for commercial, operational, financial, and HR needs from giants like Google, IBM, Microsoft, and Yahoo!, to smaller companies like PROS and Farelogix.

Close U.S.-U.A.E. Military Cooperation Boosts Defense Aerospace Sales

To promote peace and stability around the world, Emirati military forces train and interoperate side by side with their U.S. counterparts, and other coalition forces, on security and humanitarian assistance missions across the broader region, from Afghanistan to Libya.  Accordingly, the close military-to-military relationship between the U.S. and U.A.E. has led to a growing demand for American aircraft and technology in the U.A.E.

•  Lockheed Martin provides a number of transport and tactical aircraft.

o In 2000, the U.A.E. signed a $6.4 billion contract for 80 F-16 Block 60 fighter jets. Known as the Desert Falcon; these technologically-advanced aircraft were specifically developed for the U.A.E. and designed for interoperability with American military aircraft technology. o In April 2013, it was announced the U.A.E. will purchase an additional 25 F-16s worth nearly $5 billion.

• The UAE is in the process of negotiating a contract for 12 C-130J Super Hercules transport aircraft to replace the existing fleet of C-130Hs.

• Boeing’s Defense, Space & Security products include: AH-64 Apache helicopters and CH-47 Chinook helicopters.

• In January 2010, the UAE purchased six C-17 Globemaster III heavy-lift aircraft, which have since been delivered.

• The U.A.E. Air Force operates 40 Sikorsky UH-60 Black Hawk helicopters.  In February 2011, Sikorsky Aircraft Corporation signed a $270.6 million contract with the UAE to upgrade and weaponize 23 of those aircraft.

• Bell Textron and Bell Boeing provide helicopters supporting growing commercial relationships with the U.A.E. military.

• U.S. defense companies also support operational readiness for U.A.E. Armed Forces aircraft.

• In July 2010, the Abu Dhabi-based Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) started an $800 million joint venture with Sikorsky Aerospace Service to support the maintenance of Emirati military aircraft, as well as aircrafts for other military forces in the region.

• In 2011, both Boeing Defense Space & Security and Lockheed Martin signed agreements with AMMROC to support the maintenance of Emirati military aircraft.

U.S.-U.A.E. Civil & Defense Aerospace: Trending Upwards

The robust trade relationship between the United States and the United Arab Emirates continues to expand, with civil and defense aerospace deals serving as a cornerstone of this growth.  The U.S.-U.A.E. Business Council serves as the premier bilateral platform to promote this growing relationship and will continue to provide updates on commercial and military sales throughout Dubai Airshow 2013 for the benefit of our members and U.S.-U.A.E. stakeholders.  Follow us on Twitter and use #DXB13 to join the conversation.