Mubadala Investment Company’s units, Strata and Sanad, are on track to become global leaders in the aerospace industry as they diversify and expand their operations, according to a senior executive.
Based in Al Ain, Strata manufactures aircraft components and has billion-dollar contracts with Boeing, Airbus, Leonardo in Italy and Switzerland’s Pilatus Aircraft.
Sanad was formed in 2019 after Mubadala merged three of its units – Sanad Aerotech, Sanad Powertech and Sanad Capital.
It provides financing, leasing and maintenance services to the global aerospace, energy and industrial sectors.
“Strata started off with small parts – secondary parts – and today Strata makes one of the largest components outside of the US in its facility in Al Ain by Emiratis, mainly women ... and that is a success,” Badr Al Olama, executive director, UAE clusters at Mubadala, said on Tuesday. He was speaking at the Global Aerospace Summit, being held in Abu Dhabi until Thursday.
The UAE is diversifying its economy and expanding its manufacturing sector to reduce its reliance on imports of industrial inputs, a drive given impetus by Covid-19, which has disrupted world trade since 2020.
Last year, the Arab world’s second-largest economy revealed plans to increase the manufacturing sector’s contribution to the country’s economic output to Dh300 billion ($81.68bn) from Dh133bn over the next decade, as well as boost local production and create light and heavy industries.
“Sanad is profitable and Strata is on track [to] profitability and both of them, they developed the supply chain, they developed the ecosystem and are on track to become global leaders,” Mr Al Olama said.
Strata expected revenue of $80 million to $100m in 2021, similar to the levels of 2020, its chief executive, Ismail Abdulla, told The National last year.
The company plans to expand its manufacturing capabilities to include more segments in the industrial sector, covering biopharma, advanced materials manufacturing, digitisation and automation as part of its long-term strategy announced this year.
“We will not only double down on our aerospace manufacturing capability but also intend to have a larger contribution on the UAE’s manufacturing and socioeconomic growth … by diversifying our manufacturing portfolio,” Mr Abdulla said at the time.
Sanad is also diversifying its operations. In March, it signed a preliminary agreement with Thales to develop industrial services for airport security, air traffic and avionics systems.
Under the agreement, the companies plan to exchange knowledge and work together on regional and international projects.
Sanad and New York-listed Triumph group on Tuesday also signed a preliminary agreement to collaborate on providing next-generation engine maintenance, repair and overhaul (MRO) services for multiple engine types for aerospace and industry operations across the Middle East and Africa.
Mansoor Janahi, group chief executive of Sanad told The National on the sidelines of the event that the company has backlog contracts worth $7bn with various clients globally and expects more work this year as the travel industry recovers from the coronavirus pandemic.
“Overall signs are positive, once we see recovery, there is a pent-up demand and people want to travel. So we do believe this is going to flow into the business.”
In 2019, the company won a $6.5bn contract from Rolls-Royce to service engines powering Airbus A330 jets, tripling the volume of its annual maintenance work.
“We want to expand beyond aviation into new sectors and there will be new announcements soon," he said.
Along with Sanad and Strata, Mr Al Olama said he is also bullish about the growth of Mubadala unit Yahsat, and said five satellites operated by the company provide services to 80 per cent of the world’s population in Brazil, East Asia, Africa and parts of Europe.
Yahsat, which listed on the Abu Dhabi Securities Exchange last year, reported a 26 per cent jump in its first-quarter profit as revenue grew on the back of a strong performance of all its business segments.
Mubadala plays a key role in the Abu Dhabi government’s plans to diversify its revenue base and generate income from sources other than oil.
The company’s portfolio of investments spans five continents with interests in aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals.
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
Yahya Al Ghassani's bio
Date of birth: April 18, 1998
Playing position: Winger
Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda
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MATCH INFO
Uefa Champions League quarter-final, second leg (first-leg score):
Manchester City (0) v Tottenham Hotspur (1), Wednesday, 11pm UAE
Match is on BeIN Sports
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
Brief scores:
Manchester City 3
Aguero 1', 44', 61'
Arsenal 1
Koscielny 11'
Man of the match: Sergio Aguero (Manchester City)
