Today's Edition
MOHAMMAD GHAZAL (ABU DHABI)
With over 37 years of experience, Sanad, a wholly owned subsidiary of Mubadala, has evolved from a local player into a global leader in the aviation maintenance, repair, and overhaul (MRO) industry.
The Abu Dhabi-based company now serves major airlines from every continent, establishing itself as a recognised leader with a committed backlog exceeding Dh33 billion
Global Demand and Expansion Plans
With its solid reputation for safety and quality, Sanad has not only attracted major airlines like American Airlines, the world’s largest airline by fleet size, but has also triggered increased demand from across the globe, boosting the company’s revenues, of which more than 96% come from international markets. During a recent tour of the company's state-of-the-art facility at Abu Dhabi International Airport, Mansoor Janahi, Managing Director and Group CEO of Sanad, told Aletihad that Sanad is investing over Dh100 million in upgrades, expanding its role in positioning Abu Dhabi as a global aviation hub.
Strategic Markets and Partnerships
Soaring demand amid a growing international client base has prompted Sanad to eye strategic expansion into emerging markets, particularly Egypt, Southeast Asia and India. Sanad’s long-term partnerships with all major engine original equipment manufacturers (OEMs), allows it to service a wide range of engines, from the MENA region to as far away as Mexico, where it caters to Volaris the largest low-cost carrier. “Today, we have over Dh33 billion of committed backlog running through 2035, making us one of a kind, not just in the region, but globally as well… We receive engines from all over the world,” Janahi said.
“We are extremely proud that we started in Abu Dhabi, we started local, but today our customer base is very much global,” he added.
Scaling Production
Sanad currently maintains four engine types and anticipates increasing its output from 140 engines last year to 172 engines by the end of 2024.It also plans to industrialise a new engine line in November 2024, expanding its product portfolio to five engine platforms. Production is expected to exceed 200 engines by 2025 and 225 by 2026. The growth is primarily driven by the new LEAP engine platform, which the company industrialised last year.
"This growth necessitates not only expansion within the UAE but also exploring opportunities in emerging markets like Egypt and India."
Increasing Order Book and Revenue
“We are seeing strong demand from the market. This year alone, we added Dh4 billion to our backlog, increasing Sanad's global orderbook to Dh33 billion,” he said.
In the first half of this year, Sanad reported AED 2.3 billion of revenues and it expects to close the year with a 23% year-on-year growth, achieving a total of AED 4.5 billion for the year.
Janahi underscored Sanad’s commitment to solidify its position as the region's leading aircraft engine maintenance provider, continuously investing in new capabilities and exploring growth opportunities.
Focus on Egypt and India
Egypt is one of the key expansion markets as “they have the infrastructure, the talent, and aviation market potential”, he said.
“We are also looking at India, the fastest growing aviation market globally. We have built strong relationships with Indian operators over 20 years, including approval from the Indian Aviation authority”, said Janahi. Sanad plans to initially serve the Indian market from Abu Dhabi creating a “corridor” between the two countries before establishing a presence in India. “Southeast Asia also represents a promising growth region for Sanad.” he said.
“We are extremely fortunate to be based in Abu Dhabi and we are grateful for the support from our leadership and our shareholder Mubadala,” Janahi noted, emphasising the role of UAE leadership in Sanad’s success.
Commitment to Safety and Quality
Safety is paramount at Sanad, guided by its SQDC philosophy: Safety first, Quality second, Delivery third, and Cost fourth. The company complies with regulations from over 24 aviation authorities worldwide, ensuring every engine meets stringent safety standards. "At the end of the day, it’s an engine that makes an aircraft fly," the Group CEO emphasised, highlighting the critical nature of their work.
Quality is equally prioritised. Sanad's commitment to excellence has earned it a global reputation as a trusted leader in the aviation industry.
“We have our own quality standards and department to ensure that we maintain the highest level” explained Janahi. “We take this extremely seriously and adhere to our SQDC philosophy: safety above all.”
Emiratisation and Workforce Development
An essential part of Sanad's strategy is its commitment to Emiratisation and workforce growth. From just 250 employees a decade ago, the workforce will this year grow to over 600, with more than 30% being Emirati nationals.
"Investing in local talent is crucial for our future," the Group CEO said. "Our people are the backbone of this business."
Sanad’s journey from a local operation to a global aviation leader showcases the UAE’s commitment to fostering international growth, safety, and quality in the aerospace sector. With support from Abu Dhabi’s leadership and a forward-looking strategy, Sanad is poised to make an even greater impact on the global aviation landscape.
