RASHA TABILA (ABU DHABI)
Mansoor Janahi, the Managing Director and CEO of Sanad, a global industrial services leader wholly owned by Mubadala Investment Company, said that the company plans to expand within the UAE and beyond in 2024
In remarks to Aletihad, he noted that the company plans to increase operational capacity and revenue, and form global partnerships in key markets such as East Asia, Eastern Europe, and Africa, in addition to expanding facilities to capitalise on the growth achieved by the aviation sector locally and regionally.
"Our focus in the UAE is first through increasing operational capacity for annual engine maintenance. We concluded 2023 with the maintenance of 140 engines, and we will increase capacity by 40% over the next two years to reach 200 engines," Janahi said.
"Today, we are maintaining four engines, the latest being the Leap engine, announced last November, which witnessed the opening of a dedicated maintenance centre. The contract with the manufacturer includes the Leap engine, which includes two models, one of them is the Leap 1-B, for which maintenance has already started, making it four engines currently maintained, and it will increase to five engines by the end of 2024 with the addition of the Leap 1-A engine."
In June 2023, on the sidelines of the Paris Air Show, Sanad Aerotech signed an 11-year collaboration agreement with industry giants GE Aerospace and Safran Aircraft Engines, then opened its cutting-edge facility in Abu Dhabi for aircraft engine maintenance, repair and overhaul (MRO) solutions for Leap engines in November.
Under the agreement, Sanad expanded its services to include MRO solutions for new generation CFM International engines, Leap 1-A and Leap 1-B, which power the Airbus A320neo and Boeing 737 Max aircraft families, and have gained worldwide fame for their reliability and fuel efficiency.
"What distinguishes our engine portfolio is its diversity and integration, in addition to our partnership with four major aircraft engine manufacturers in the civil aviation industry worldwide," Janahi said.
He pointed out that expanding operational capacity and adding new workshops contribute to increasing job opportunities, especially for citizens, as the current Emirtisation rate in the company is 25.3%, and it is expected to grow to over 30% in the next two years.
The CEO said: "We focus on technical and engineering positions, where we have special training programmes for citizens. One of them is the 'Sanad for Future Leaders' programme, initiated this year, which focuses on current Emirati employees in Sanad to provide them with managerial experiences to take on leadership roles."
"We have a programme to recruit technicians and train them in training centres in the UAE before joining Sanad workshops and engaging in core work. And yet, another that focuses on engineering positions," he noted.
"We currently have more than 450 employees, and we aim to add 100 jobs over the next 18 months," he added.
Regarding the total contracts in the Sanad portfolio, Janahi said: "We started 2023 with a total of Dh28 billion in long-term contracts with global commercial aircraft engine manufacturing companies, reaching Dh30 billion by the end of the year."
He added: "With the expansion and growth witnessed in the global and regional aviation sector, we expect more partnerships and expansion."
Janahi said: "The Middle East has surpassed pre-COVID-19 results, and we anticipate a complete recovery of the aviation sector in 2024, with growth compared to the pre-crisis year. We expect a 5% growth in company revenues for 2024 when compared to 2023."
Janahi noted: "Our focus in 2024 is on the airport sector, where a new contract was announced with Thales at the Dubai Airshow to focus on the airport sector. The sector in the UAE is witnessing growth in terms of investments, whether through the opening of new airports or the expansion of existing ones, as our work includes providing maintenance services for time and navigation devices at airports."
During the Dubai Airshow last November, the Sanad Group announced the signing of a strategic framework agreement with Thales, aimed at expanding its services in the field of MRO of aircraft engines to include vital areas related to airport security, air traffic control, and digital operations, paving the way for a new phase in the regional aviation sector.
Janahi added: "This comes after studying the airport sector and finding that maintenance services are diversified, and there is no leading and major company in the maintenance field. Our goal is to establish a leading company that provides maintenance services, thus contracting with Thales in this field."
The implementation of the contract has begun, and the company is currently focusing on airports within the country and plans to expand to the region and then globally, he noted.
Regarding the expansion of facilities and maintenance workshops, Janahi said: "We have a strategy to expand outside the UAE based on long-term relationships for decades with global partners and clients. Today, we have more than 30 airlines using Sanad as their maintenance centre, and we deal with more than 20 civil aviation authorities. We focus on the markets of Africa, Eastern Europe, and East Asia, which are experiencing significant growth in the aviation sector, and we aim to expand by forming partnerships with airlines and various partners to open new facilities."
Janahi noted that company was in discussion with companies in East Asia, Eastern Europe, and India for partnerships and expansions.
Regarding the use of modern technologies, Janahi said: "The aviation sector is undergoing continuous technological development, and we pay special attention to technology. In 2017, a dedicated research and development team was established to study the most important modern technologies that play a crucial role in the field of maintenance."
"We have various relationships and partnerships to support this field, such as our partnership with Khalifa University and other technological partnerships with global companies such as Honeywell and Lufthansa," he added.
"We are the largest engine maintenance service provider in the Middle East region and we contribute to the UAE's sustainability goals."