Embraer and Mubadala deepen UAE aerospace partnership

Embraer and Mubadala Investment Company have signed an agreement aimed at expanding aerospace manufacturing, services and technological capabilities in the UAE, strengthening the country’s role in the aircraft maker’s global supply and support network.

The agreement establishes a framework for the two companies to assess industrial projects that could increase the amount of Embraer-related work carried out in the UAE and across the wider region. Areas under consideration include manufacturing, aircraft maintenance, repair and overhaul, engineering, training, research and development, and supply-chain participation.

The partnership also seeks to identify opportunities for UAE-based companies to produce components or provide services for Embraer’s commercial, executive and defence aircraft programmes. Detailed investment figures, production targets and implementation timelines were not disclosed.

The agreement brings together Embraer’s aircraft design and manufacturing expertise with Mubadala’s portfolio of aerospace and advanced manufacturing businesses. Mubadala has spent almost two decades building an aviation ecosystem in Abu Dhabi through investments covering aerostructures, engine maintenance, component services and technical training.

Both companies are expected to evaluate how existing industrial capacity can support Embraer aircraft operating in the Middle East, Africa and parts of Asia. The region has become an increasingly important market for commercial aviation, military transport aircraft, business jets and maintenance services.

Embraer has expanded its position in the UAE after securing an order for 10 C-390 Millennium military transport aircraft, with options for 10 more. The transaction made the UAE the first Middle Eastern customer to select the C-390, a twin-engine aircraft designed for cargo transport, troop movement, medical evacuation, aerial refuelling, firefighting and humanitarian missions.

The confirmed portion of that order has been valued by market analysts at about $1 billion, although the final contract value depends on aircraft configuration, support packages, training and associated equipment. Embraer views the programme as a platform for establishing a deeper industrial and operational presence in the Gulf.

The new agreement could support local maintenance and after-sales capabilities for the C-390 and other aircraft. Developing such capacity would reduce dependence on overseas repair centres, improve fleet availability and create opportunities for specialised engineering and technical employment.

Mubadala’s aerospace investments include Strata Manufacturing, an Al Ain-based producer of composite aircraft structures, and Sanad, which provides aircraft engine and component services. These businesses have worked with major international manufacturers and operators, giving the investment company experience in developing long-term industrial partnerships.

Strata produces aerostructure components for global aircraft programmes, while Sanad provides maintenance and financing services across engine and component markets. Their capabilities could offer possible routes for collaboration, although the companies covered by the Embraer agreement have not been specified.

Training and workforce development are also expected to form part of the discussions. Aerospace manufacturing requires specialised skills in precision engineering, composite materials, digital production, quality control and aircraft certification. Expanding these capabilities would support the UAE’s plans to increase high-value industrial activity and create technical roles for Emirati professionals.

The agreement aligns with Operation 300bn, the UAE strategy that aims to raise the industrial sector’s contribution to gross domestic product to AED300 billion by 2031. Aerospace has been identified as a priority because of its potential to generate exports, transfer technology and connect local companies with international supply chains.

For Embraer, a larger UAE presence could provide access to a growing pool of customers seeking alternatives in commercial and defence aviation. The company manufactures regional airliners with up to 150 seats, the Phenom and Praetor executive jet families, the A-29 Super Tucano light attack aircraft and the C-390 military transport.

More than 9,000 Embraer aircraft have been delivered since the company was founded in 1969. Its commercial aircraft are used by airlines across Europe, the Americas, Asia, Africa and the Middle East, while its defence products serve governments and armed forces in more than 60 countries.

The Middle East is considered a strategic growth market as governments replace ageing military transport fleets and airlines seek aircraft suited to regional routes. Embraer estimates that between 400 and 480 medium military transport aircraft will be required worldwide over the next 20 years, with hundreds of existing aircraft approaching or exceeding 45 years of service.

The agreement with Mubadala may also broaden Embraer’s links with local suppliers. Aircraft manufacturers are seeking geographically diverse production networks after component shortages and logistics disruptions exposed weaknesses in highly concentrated supply chains.