Improved asset and strong lending growth to drive profitability, S&P Global says
finance5 hours ago
Against a backdrop of new aeroplane programmes, growing passenger traffic globally, low commodity prices and political uncertainties, the aerospace and defence industry is going through significant changes, particularly in the Middle East.
The industry is facing a range of challenges to address environmental and regulatory issues, and an increased dependence on a global supply chain. The network of organisations - including suppliers, distributors, customers, competitors, government agencies and so on - involved in the delivery of passenger jets, defence products and weapons systems are facing these tremendous challenges both at home and abroad through competition and limited resources.
Supporting the industry's evolution are countries that are trying to build indigenous aerospace capabilities in exchange for access to markets to help grow economies, gain technologies, provide employment opportunities and eventually to compete on the world marketplace. In barely a decade, the UAE has emerged as a regional leader in aerospace. Leveraging its booming airline and airport companies, the UAE has expanded into manufacturing and servicing aeroplane components, gaining partnerships with the world's biggest aviation players. For example, Mubadala has been supporting the development of a sustainable aerospace industry for Abu Dhabi, forming partnerships and initiating investments with leading companies like Boeing, Lockheed, GE and others.
Additionally, exciting opportunities are emerging to create "aerospace ecosystems". In the UAE, you are starting to see Stem (science, technology, engineering and mathematics)-related industries beginning to flourish. To support Stem activities at a grassroots level and help secure the future of science and technology, Boeing has supported many initiatives including research and development, teacher training, primary and secondary school design challenges, internships, mentorship programmes and chartable grants to UAE's top engineering schools.
One example is the Boeing-Mubadala Co-Op internship programme, which provides vital aerospace engineering expertise to bolster the UAE's ever-expanding aviation capabilities. Launched in 2015, the programme aims to support the development of a sustainable aerospace industry in the UAE.
Customers are asking for - if not demanding - value propositions that include education and training programmes, skills development, technology transfer, industrial partnerships and relationships that provide products and services for the entire product life cycle to keep it relevant for decades.
Time and time again, success in aerospace and defence manufacturing compliments efforts in other areas of development and adds to capabilities. Pioneering roles in scientific research and development contribute to building new technologies and capabilities to lay the groundwork for manufacturing, economic growth and employment. Boeing has a number of technical support centres for its customers, industrial and academic partnerships and Boeing's Global Corporate Citizenship programme connects us to community organisations through charitable and business investments and support.
Boeing's plan is to continue to expand our presence in the region through partnerships, organic growth and through support to build in-country capabilities. Boeing supports knowledge and technology transfer and investment in the region's human capital. We are committed to partnerships that support regional plans for economic diversification and to become aerospace hubs. We believe in the power of partnerships and leveraging local knowledge to be successful in the market. We are committed to providing the Middle East with key partnership and aerospace development opportunities, and we work closely with Arab governments and defence forces to take a key role in enhancing safety and security in the region.
By working together, we can build the aerospace ecosystem for the region.
The writer is president of Boeing Middle East, North Africa and Turkey. Views expressed are his own and do not reflect the newspaper's policy.
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