Mubadala expands aerospace investment horizons with Airbus and Boeing - IFN

Mubadala expands aerospace investment horizons with Airbus and Boeing

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UAE: Mubadala, the investment arm of the Abu Dhabi government, has signed strategic agreements worth US$5 billion with Boeing and Airbus for the manufacturing and supply of aircraft materials through its subsidiaries, Mubadala Aerospace, Communications Technology and Defense Services (ACTDS) and Strata Manufacturing (Strata). Under its agreement with Boeing, Strata is projected to supply approximately US$2.5 billion-worth of advanced composites and machined metals to Boeing’s commercial programs as well as collaborate to develop pre-preg and carbon fiber manufacturing capabilities in the emirate. Commenting on the deal, Homaid Al Shemmari, the executive director of ACTDS, said: "Today's agreement provides an important platform as we develop our role as a significant supplier to Boeing of composite aerostructures, and develop Strata into a major Tier 1 industry supplier." Mubadala’s strategic treaty with Airbus underlined the production of composite and metallic aerostructure in the UAE and the procurement of US$2.5 billion-worth of composite raw materials. Airbus also committed to awarding work packages to Strata, Mubadala’s advanced composite aerostructures manufacturing plant. Homaid further added that the deal reflects Mubadala’s clear commitment to invest in and support the continued development and growth of the aerospace sector, in the UAE and globally. The diversified investment vehicle of the emirate, which also has numerous Shariah compliant investments, recently reported a 10.4% increase in its profit with net income reaching AED1.1 billion (US$299.45 million) for the first half of 2013. Focused on investments across multiple sectors such as oil and gas, infrastructure, healthcare and real estate, Mubadala’s portfolio is currently valued at more than US$55 billion.