The United Arab Emirates’ (UAE) strategic location, robust infrastructure, and government initiatives make it a key hub for aerospace development and collaboration. The UAE has become a global aviation hub, with major airports, thriving commercial airlines and a growing business aviation sector. The UAE government has also made significant investments in various expansive space projects and advanced manufacturing capabilities.
Aerospace market in the United Arab Emirates
Industry highlights
18% contribution to UAE’s GDP
210,000 direct jobs in UAE’s aerospace sector
CAD 3.5B in aerospace exports in 2024
Key opportunities for Canadian aerospace companies in the UAE
- Aerospace manufacturing
- Maintenance, repair and overhaul (MRO)
- Space sector
Notable challenges for Canadian aerospace companies in the UAE
- International competition is high
UAE business landscape
Airlines
The UAE aviation sector is anchored on the UAE’s two global airlines. The country is also home to two noteworthy low-cost carriers, and several main charter airlines.
Main airports
- Dubai International Airport (DXB): Operated by Dubai Airports, DXB was the world’s 2nd busiest international airport in terms of passenger traffic in 2023, with 87 million passengers. DXB is the base of Emirates and flydubai.
- Zayed International Airport: Also known as Abu Dhabi International Airport (AUH), it is the second largest airport in the UAE with close to 23 million passengers in 2023. AUH serves as the base of Etihad Airways and other low-cost carriers.
- Dubai World Central / Dubai Al-Maktoum International Airport (DWC): Opened in 2010 and operated by Dubai Airports, DWC is in Dubai South. The airport is undergoing a massive transformation to become the world’s largest aviation hub by 2032.
- Sharjah International Airport (SHJ): SHJ is the base of Air Arabia and serves other low-cost carriers.
Business aviation
Growth in the business aviation sector continues to be supported by a high concentration of high-net-worth individuals. The sector includes a well-developed ecosystem of:
- fixed-base operators (FBOs)
- aircraft management providers
- charter operators
- MRO service providers
- aircraft sales and support organizations
MRO
Commercial MRO demand in the UAE has grown alongside the remarkable expansion of the aviation sector.
Aircraft leasing services
Dubai Aerospace Enterprise (DAE) Capital, fully owned by the Investment Corporation of Dubai, manages a fleet of 500 aircraft. It partners with 118 airlines that use its fleet.
Training
Demand for aviation training services has grown in recent years. The sector is supported by specialized aviation training institutions and training centres that provide pilot, technical, and aviation management programs.
Advanced air mobility (AAM)
The UAE government has been proactive in fostering innovation in the AAM sector by developing adequate regulations and infrastructure. The UAE’s General Civil Aviation Authority (GCAA) has published the world’s first national regulation related to vertiports, ensuring a regulatory environment that supports vertical take-off and landing (VTOL) aircraft.
Space
The UAE has invested heavily in positioning itself as an emerging leader in the space sector. Areas of focus include satellites and space exploration.
Summary
The UAE’s aerospace market is growing very fast, is very attractive, and creates intense international competition. Canada currently enjoys a strong position in business aviation aircraft and simulators. Significant opportunities exist for Canadian companies who can enable the UAE’s own space sector, and its MRO and aerospace manufacturing sector.
Contact us
For more information about aerospace in the UAE market, please contact Trade Commissioner Geraud Loubeyre at geraud.loubeyre@international.gc.ca or uaecommerce@international.gc.ca.
