Aerospace and Defense Exporter Alert

Aerospace & Defense Exporter Alert

Each newsletter features a market of the month, important policy initiatives, industry programs, a trade show calendar and export statistics.

Markets of the Month

Every other month, the Aerospace & Defense Exporter Alert highlights a new market with industry snapshots, updates and featured events.

Israel

The U.S.-Israel economic and commercial relationship is strong, anchored by bilateral trade of close to $45 billion in goods and services annually. U.S.-Israel bilateral economic relations are codified in several treaties and agreements, including the 1985 U.S.-Israel Free Trade Agreement (FTA) and the Agreement on Trade in Agricultural Products. Since signing the FTA in 1985, U.S.-Israel bilateral goods and services trade has grown eight-fold, making the United States Israel’s largest trading partner.

Defense
Israeli defense spending averages approximately $15B-$18B per year (national funds). In addition, the United States provides Israel $3.3B annually in Foreign Military Financing (FMF). As of June 2022, Israel has 618 active Foreign Military Sales (FMS) cases valued at $26.4B.

The current U.S. military aid to Israel, covering FY2019 to FY2028 is $38 billion: $33 billion in FMF plus $5 billion in missile defense appropriations. Additional U.S. funding was allocated in 2016 for anti-tunnel capabilities that detect, map, and neutralize underground tunnels.

Israel’s military and commercial activities with the U.S. defense industry are strong and include commercial contracts with major U.S. companies. The local industry is sourcing quality components and sub-systems, and the security cooperation programs focus on: Precision Guided Munitions (PGMs); air and missile defense; maritime security of offshore natural gas; intelligence, surveillance, and reconnaissance; ground forces capability and vehicle support; command, control, communications, and computers; and conventional munitions, presenting export opportunities to U.S. suppliers of high-quality components that can be integrated into Israeli systems.

The country’s defense industry is dominated by three companies: Israel Aerospace Industries (IAI), Rafael Advanced Defense Systems (both parastatals), publicly owned, and Elbit Systems. The companies have a diverse portfolio of products and services, including space and airborne reconnaissance systems, radar systems, UAVs, avionics and electro-optical systems, munitions, tanks and armored personnel carriers. They produce structural components and parts and operate maintenance, repair and upgrade facilities. In addition, there are several hundred small and medium sized enterprises active in the sector.

Space
Israel has a space research program with scientific and commercial goals and has developed indigenous launch capabilities. A space cooperation agreement with NASA in 2015 expanded cooperation in civil space activities. Israel’s space program is small but significant. The country’s first mission to the moon was in April 2019, that resulted in an unsuccessful lunar landing, however this event established Israel as the fourth nation to attempt to soft land on the moon. In April 2022, Eytan Stibbe, as a space tourist, became the second Israeli in space, since Ilan Ramon, who died in the 2003 Columbia disaster, returning from space.

The Israel Space Agency (ISA) published a new strategic plan in May 2022 in which it agreed on the following targets for developing the Israeli space industry:

Doubling the number of space companies (from 60, at the present time, to at least 120);
Quadrupling the number of people employed in the space industry, from 2,500 to 10,000;
Quadrupling the scope of annual sales made by the space industry, from US $1 billion to US $4 billion;
Increasing the number of space researchers in the academic world, from 120 to 160 (an increase of 33%);
Increasing the number of high school graduates who have been involved in the space industry, from 200 to 4,000; and
Establishing international partnerships in the space industry and increasing the Israeli presence in key multi- and international organizations.

Civil Aviation
Israel’s national carrier, El Al, has a fleet of 45 aircrafts, all manufactured by Boeing. The airline company, like the entire airline commercial aviation industry, suffered major loses due to the pandemic, and on July 2020, the company announced it had worked out a bailout deal with the Israeli government. Two months later, over 45% of El Al shares were bought by Kanfei Nesharim, a company owned by Eli Rozenberg. The Israeli government still holds ~13% stake in the company. In April 2022, the first ever female CEO was appointed: Dina Ben-Tal Ganancia. While it’s unlikely that El Al Airlines will be purchasing any new aircrafts anytime soon, opportunities may be found for maintenance, repairs, upgrades and other services.

Upcoming Events

We are located in U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet Yariv Moravnik Shavitt
Aerospace & Defense Commercial Specialist
U.S. Embassy Jerusalem – Branch Office Tel Aviv

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India

Let us briefly understand today’s India. Home to 1.3 billion people, it is one of the world’s fastest growing economies, spending billions of dollars aggressively to improve infrastructure. Foreign suppliers have a key role to play in offering advanced technology to help India make this transition. India’s huge market can be complex and diverse. Successful U.S. companies often invest in better understanding the forces that drive the country’s market. India’s 300 million-strong middle-class, for instance, exercises its influence on major policy matters. India and the U.S., over the years, have developed a mutual affinity. U.S. culture, products and services are accepted with much ease in India. This natural attraction is an asset for U.S. investors. India has been a customer of some of the best U.S. aviation and defense technology, thanks to strong commercial, military, and political relationships. The trajectory of this relationship mitigates many of the hurdles in the Indian market. The Make in India initiative, specifically, is often a challenge for US companies but one that can be overcome through partnerships with Indian entities.

Civil Aviation
With the industry’s $30 billion contribution to India’s GDP, the domestic aviation market is estimated to be third largest globally by 2024. India has a 20-year roadmap to develop civil aviation and envisions a five-fold increase in airports to handle over one billion trips a year. Experts estimate that the industry will require over 100,000 new pilots, technicians, and cabin crew personnel. The Indian government also plans an increase in helicopter strength through its ‘Policy for promotion of Helicopter operations’, which will encourage operators creating demand and growth for services such as emergency rescue, aerial work, disaster response, and airborne law enforcement. In pursuit of its goal to capture 25 percent of global market share, India has prepared a road map to become a UAV hub by 2030. While restrictions have been imposed on UAV imports to encourage indigenous manufacturing, U.S. companies can still find opportunities to collaborate with local partners for advanced UAV software/technology. India’s growing fleet of airplanes will demand more maintenance services. Approximately 90 percent of India’s MRO activity occurs outside India, predominantly in Sri Lanka, Singapore, and Malaysia. The government has revised its MRO policy to provide this segment ease of doing business. Efforts are underway towards making India a center for services in the region. Its location between Europe and Southeast Asia, and proximity to the Middle East, is an advantage. Airport and aviation safety and security systems is another priority segment. The Government is also making efforts to promote use of green energy at airports through 14 policy areas proposed under the draft National Green Aviation Policy.

Space
India is one of the few countries in the world with an advanced space program that has seen major growth over the last several years. Additionally, the Indian commercial space sector is on the threshold of significant change. To develop and enhance Indian private sector participation in the country’s space programs and to expand its share of the global market, in May 2020 the Indian government announced access for the Indian private sector to its space activities and programs, a major shift in policy. India’s share of the global U.S.$360 billion space market currently stands at less than three percent. India’s launch business currently accounts for less than 1% of the global launch services market generating revenues worth $288 million in a global market of $35 billion. India’s recent steps towards privatization potentially create opportunities for international space companies. In recent years, some Indian start-ups have developed innovative space systems, launch vehicles, and small satellites to include on future Indian launches. As the Indian private sector gears up to play a greater role in Indian space programs, Indian industry will look towards international cooperation and partnerships to develop and upgrade their capabilities. This presents opportunities for U.S. space companies to partner with Indian industry and participate in Indian space programs.

Defense
India enjoys a unique status as a Major Defense Partner of the United States. As bilateral ties between the United States and India grow, cooperation in the defense sector is likely to grow in parallel. Defense is one of the most promising sectors for U.S. exports to India, thanks to American technological edge and India’s security situation. India has already procured over $18 billion in equipment, including Boeing Apache and Chinook helicopters; P-8I maritime surveillance aircraft; C-17 heavy transport aircraft; Lockheed Martin C-130s; and BAE M-777 howitzers. The Make in India policy makes it imperative for US companies to reorient market strategy. With the Indian government’s focused approach to expanding indigenous defense manufacturing, US firms may struggle initially. India’s defense ministry has included 310 items (weapons and platforms) to date in restricted import list. Foreign competition on government procurements in India is intense. Major U.S. defense companies are expanding manufacturing operations in India to support the Indian government’s efforts to strengthen its domestic defense industry. This will create additional opportunities for second and third tier U.S. suppliers. India’s 2022 Defense Budget reserves 25 percent of total Research & Development (R&D) spendings for start-ups and private sector, including design and development of military equipment and platforms. This may be seen as a major opportunity for the U.S. companies to collaborate with local partners in this segment.

Upcoming Events:

For companies seeking in-person opportunities to enter the Indian market, there are at least three events of interest:

Bengaluru Space Expo (BSE) 2022, Bengaluru, India. September 5-7, 2022, Organized by the Confederation of Indian Industry (CII), India’s premier business chamber in association with the Indian space agency, ISRO (Indian Space Research Organization), the three-day event will comprise of exhibition and an international conference highlighting developments in the Indian space sector and providing a platform for Indian and International space agencies and private businesses to interact and explore partnership opportunities.
Aerospace India Trade Mission, Main stops (New Delhi, Hyderabad), Spin-off stops (Mumbai, Bengaluru), September 19-23,2022. The purpose of the mission is to introduce U.S. companies to India’s aerospace ecosystem and assist delegate companies with finding business partners and exporting their products and services to the region.
Aero India 2023, Bengaluru, India, Dates TBD, The Aero India 2023 show is organized by the Indian Ministry of Defence (MoD) and it is the country’s largest biennial premier air show and aviation exhibition. The show demonstrates military and civilian aircraft and related articles to potential partners, and to announce new policy developments.

We are located in U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet Nisha Wadhawan
Aerospace & Defense Commercial Specialist
U.S. Embassy - India, New Delhi

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U.K.

The UK aerospace and defense industries are inextricably intertwined. The UK aerospace industry is the second largest in the world, behind that of the U.S., and is an export-driven industry. In 2021, UK civil aerospace turnover totaled approximately $32 billion. The UK aerospace industry is the crown jewel for UK exports and, even though the UK does not produce large civil aircraft, 98% of domestic aerospace production is exported. In 2021, the UK defense industry turnover totaled approximately $33 billion, $15 billion of which was exported. In 2021, the UK space industry turnover totaled approximately $22 billion, $8 billion of which was exported.

Aerospace
The UK has a very mature supply chain and new entrants will need to dedicate significant resources to participate. The UK has a reputation as a global center of excellence for the design and production of engines, helicopters, wings, structures, and aircraft systems (including landing gear). The UK also designs and manufactures wings for all Airbus aircraft platforms. In addition to manufacturing, the UK has a thriving maintenance, repair, and overhaul sector (MRO), which provides services to the huge numbers of military and civil aircraft that fly through and from the UK every year.

More than 3,000 aerospace companies operate in the UK, and the aerospace sector has the largest number of SME companies in Europe, providing over 282,000 jobs directly and indirectly. Domestic companies include BAE Systems, Cobham, GKN, Meggitt, QinetiQ, Rolls-Royce, and Ultra Electronics. Non-domestic companies with a major presence include Boeing, Airbus Group, Leonardo (including its AgustaWestland and Selex ES subsidiaries), General Electric (including its GE Aviation Systems subsidiary), Lockheed Martin, MBDA, Safran, Spirit AeroSystems and Thales Group.

Airbus in Broughton assembles the wings for all Airbus civil aircraft, including the new A350 XWB. Boeing has a production facility in Sheffield, Boeing’s first manufacturing site in Europe, and GKN Aerospace produces the Advanced Technology Winglet for the Boeing 737 MAX. Rolls-Royce-manufactured engines power more than 35 types of commercial aircraft, and the company has over 13,000 engines in service around the world.

Drones are becoming an increasingly familiar aspect of life and work in the UK, playing a growing role in areas ranging from emergency services to construction and oil and gas. The rising use of drones in business and public services is predicted to be highly impactful and to deliver significant benefits to the British economy and society. Drones have seen a particularly significant uptake in the oil & gas industry. Drone use is also well established in the utilities industry, for the inspection of long, liner assets such as powerlines.

Defense
Defense cooperation between the U.S. and the UK is well established and the UK is considered a Tier one partner. As such, the UK has significant military capability and seeks to augment its current capability with the latest technology available. Most technology, if acquired from the U.S., requires an ITAR license and new suppliers need to be familiar with the licensing application process.

The UK is one of the top NATO countries in terms of defense spending. The UK met its spending target of 2% of its GDP in 2019, and 2020 and the UK Government announced in February 2022 its plan to invest $270 billion into the procurement of next generation military equipment over the next ten years. This investment is expected to strengthen the UK’s digital and cyber capabilities, along with air, land, and sea capabilities.

In March 2021, the UK released three strategic guidance documents: Integrated Review (IR) of Security, Defense, Development and Foreign Policy, Defence Command Paper (DCP), and the Defence & Security Industrial Strategy (DSIS). Highlights from the reports include:

Naval – $2.5 billion invested into the Royal Navy carrier force, the UK ship building industry, and development of greater missile capability. The UK will produce eight Type 26 Anti-Submarine Warfare Frigates, five Type 31 General Purpose Frigates, and a Type 32 multi-role frigate. $265 million will be spent on the Royal Marines to enable transition from amphibious infantry into a forward-based, highly capable maritime “Future Commando Force.”

Land – The British Army will reduce its troop strength (again) from 76,500 to 72,500 by 2025 by reorganizing into seven brigade combat teams. The British Army will create a Ranger regiment similar to the U.S. Army Rangers. The Warrior tank upgrade was cancelled and replaced with the wheeled Boxer (similar to the U.S. Stryker). $4 billion will be spent on new equipment such as long-range precision fires; air defense; tactical surveillance drones; and electronic warfare and cyberspace capabilities.

Air – Investing $2.6 billion in the Future Combat Air System. The RAF retired the E-3D Sentry in 2021, and it will be replaced with three Boeing E7 Wedgetails by 2023. The UK committed to purchasing more F-35s beyond its current order of 48, but no figure was specified. The UK, unfortunately, also announced its retirement of the C130-J Hercules, which will be replaced with 22 Airbus A400-Ms.

Space
The UK commercial space industry is rapidly growing, with an approximate turnover of over $22 billion in 2021. The stated ambition is to capture 10% of the global space market by 2030. Accelerating growth year on year, the UK is a world leader in nano and small satellites. 40% of all small satellites currently in orbit were manufactured in the UK. The UK commercial space sector has seen steady investments in new and existing space technologies and services, with funding coming primarily from industry and venture capital, with some government support. The market can be broken down into four main components. Over two-thirds of total market income is derived from Space Applications, followed by the smaller components of Space Operations, Space Manufacturing, and auxiliary services.

The UK has the ambition to be at the forefront of new developments in small satellite launch and sub-orbital flight, with seven launched sites planned within the UK. The UK’s long coastline and island location make it well suited to host different types of launch services. Scotland is the best place in the UK to reach in-demand satellite orbits with vertically launched rockets. There are also several aerodromes around the UK, each with its own unique geography and local infrastructure, giving the UK the capability to host a variety of different types of spaceflight activity including both horizontal and vertical launch. Industry and UK Government are working together to develop UK spaceports, as well as launch vehicle and small satellite technology. These technologies will be complemented by space services, such as test facilities.

U.S. companies looking to partner with British companies should look to the Harwell Space Cluster, which hosts 92 space organizations, including the UK Space Agency, RAL Space, the Satellite Applications Catapult, the Science & Technology Facilities Council and the European Space Agency’s European Centre for Space Applications and Telecommunications.
Upcoming Events:

For companies seeking in-person opportunities to enter the U.K market, there are several upcoming events of interest:

Farnborough International Airshow, Farnborough (greater London), UK. July 18-22, 2022
The Farnborough International Airshow is the second-largest show of its kind after the Paris Air Show, and includes over 1,500 exhibitors from 48 countries. It is a biennial week-long event to demonstrate civilian and military aircraft to potential customers and investors, and to announce new developments and orders.
Space-Comm Expo, Farnborough (greater London), UK. September 7-8, 2022
This event showcases the manufacturing supply chain for products, services and solutions supplying commercial enterprises and developments in Space. Space-Comm Expo brings together the entire Space sector for business and networking, and provides industry and government speakers, a Meet -the-Buyer program, and face-to-face roundtables.
MRO Europe, London, UK. October 18-20, 2022
MRO Europe is the largest event of its kind in Europe, where airlines, MROs, OEMs, lessors, suppliers and industry experts converge to explore and define the aviation maintenance industry. MRO Europe is the meeting place for all those looking to learn, connect and do business in the commercial aviation aftermarket.
Three Counties Defence & Security Expo (3CDSE), Malvern, UK. November 2-3, 2022
3CDSE is a Special Forces-focused event, and is an active touchpoint for leading-edge technology. It brings together defense and security innovators to create a forum for commercial discussions between industry, armed forces, government, law enforcement and emergency services.
DSEI, London, UK. September. 12-15, 2023
DSEI is a four-day international exhibition for civilian and military participants in the defense industry held biennially at the ExCel Center in London. DSEI will attract over 35,000 attendees from over 100 countries and will showcase over 1,000 defense and security suppliers, including all the major prime manufacturers.

We are located in U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet P.J. Menner
Aerospace & Defense Commercial Specialist
U.S. Embassy - U.K., London

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Chile

Although Chile covers a small geographic area relative to its neighbors, many companies consider Chile to be a regional leader in Latin America and an excellent platform for doing business in South America. As an open market with free trade agreement signed with over 60 countries, Chilean citizens enjoy access to a wide variety of goods and service sourced worldwide. While the United States is a top trading partner with Chile, U.S. exporters will face strong competition in the market. To be successful in becoming a registered supplier in the aerospace and defense industry, U.S. companies need to have a local presence in Chile, either with a local partner, agent, or distributor who is well-connected to potential clients or by opening an in-country branch office.

Aerospace

The Chilean market will continue to offer high demand for aircraft parts and maintenance, repair and overhaul (MRO) services. By far, these services concentrate the largest demand in the aerospace sector. The largest and main supplier of MRO services in Chile is the state-owned company, ENAER (Empresa Nacional Aeronautica de Chile) that provides MRO services mainly to the Chilean Air Force (FACh) but it also serves the Chilean Army, Navy, and civil aircraft. There are many other smaller service providers that compete mainly to provide services to civil aircraft operations. SKY and LATAM airlines have their own maintenance centers, and American Airlines has a maintenance center serving aircrafts that fly daily to the United States.

Defense

During 2011-2020, Chile invested significantly in the modernization of defense equipment, which it intends to properly maintain upgrade as necessary. The Chilean Armed Forces have shown high interest in dual-purpose equipment, which can serve for humanitarian purposes. In keeping with rapid technology advances, Chile is considering the use of state-of-the-art technologies such as robotics, artificial intelligence, data analysis, and unmanned vehicles, among others. These technologies will also require hardware and software platforms for systems and processes than can handle large volumes of information in limited time.

Space

Chile is making strides to develop its national aerospace sector and is eager to face new challenges. Its new National Satellite System (SNSat) contemplates 10 satellites that will make up a national satellite constellation allowing the replacement of the FaSat-Charlie satellite that fulfilled its useful life. This process is already underway to build 3 minisatellites of about 100 kilos and seven microsatellites of up to 20 kilos is considered by 2025. Eight of these satellites will be built entirely in Chile. A new National Space Center will be inaugurated in 2023, which will include a laboratory to manufacture satellites, a space mission control center, a center for analysis and processing of geospatial information, and a Center for Space Entrepreneurship and Innovation.

Upcoming Events:

For companies seeking in-person opportunities to enter the Chile market, there are several upcoming events of interest:

FIDAE – International Air and Space Fair 2022
Santiago, Chile, April 5-10, 2022
The International Air and Space Fair (FIDAE) is the apex aerospace, defense and security exhibition of Latin America, globally recognized as a leading industry event in drawing participation for top military officials and private sector providers across the region. Key focus areas include: Space technology, civil-commercial aviation, defense and security, UAV/RPAS (Drones), aircraft support and maintenance, airport equipment and services, and more.
FIDAE - Space Summit 2022
Santiago, Chile, April 6-8, 2022
The Space Summit will bring together organizations involved in the National Satellite System (SNSat), where the Chilean Air Force plays a fundamental role in its implementation. Key topics for discussion include space operation, geoinformation, satellite communications, space and legal policy, space domain awareness, launchers and rockets. Chile’s space educational programs and space technology development will also be discussed in depth.
EXPONAVAL 2022
Valparaiso, Chile, November 9 - December 22, 2022
EXPONAVAL 2022, jointly organized by the Chilean Navy and FISA/GL Events Group, is an international exhibition which has been held every two years since 1998. It has become an important regional event, serving as a meeting point for Latin American navy officials and exhibitors of technology for the global defense industry, shipyards, maritime technology, security, and telecommunications industries, among others.

We are located in U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet Isabel Valenzuela
Aerospace & Defense Commercial Specialist
U.S. Embassy - Chile

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Singapore

The Asia Pacific aerospace industry has made remarkable strides over the past decade given the positive economic growth across the region. Singapore has become an industry leader by carving out its own niche market within the Asian aerospace industry. Singapore has become the region’s aerospace hub, a leader in aerospace maintenance, repair, and overhaul (MRO) services, and has promoted significant investment in research and development (R&D). Given Singapore’s strong position in the industry, and home to many aviation base operations, incentives for American firms to enter the Greater Asia aerospace market have increased.

Aerospace Market
Post COVID-19, Singapore is expected to continue growing strongly due to the significant growth levels expected within the region. MRO services are foreseen to remain the largest segment of growth in the Singapore aerospace industry. As in previous years prior to the COVD-19 pandemic, engine overhaul is anticipated to make up the largest portion of MRO spending, generating possibly under half of the MRO market. Activities such as line maintenance and component overhaul and repair, would also expect to contribute to the market growth.

In addition, rapid technology advances and digitalization are also changing the complexion of manufacturing. New market segments, including the unmanned aerial systems (UAS), have emerged. These industry trends will transform existing aerospace jobs and create new skilled jobs in areas such as data science, additive manufacturing design and robotics engineering. The growth trend represents opportunities across the value chain in manufacturing, MRO and aftermarket services.

Defense
With continued regional tensions caused by the South China Sea disputes and the yet to be resolved relationship between the US and China, combined with the presence of transnational terrorism, cyberattacks and maritime piracy, demand for defense equipment in Singapore is expected to increase, making Singapore’s defense market more appealing. In particular, demand for high-tech, high-end equipment continues as the primary impetus in keeping the relatively small Singapore Armed Forces (SAF) with the best-in-class equipment. As such, Singapore’s defense expenditure is expected to increase over the immediate years ahead, which will augur well for the local defense industry and provide greater opportunities to foreign defense suppliers in selling their wares to the SAF.

Space
Singapore has arguably one of Asia’s largest and most diverse eco-systems with over 130 aerospace players. It also hosts a growing satellite industry with more than 30 firms, which includes leading players like SES and Inmarsat and space start-ups like Astroscale.

Singapore has launched 13 small satellites since 2011, and ongoing partnerships with companies and research institutions aim to further develop its small satellite capabilities and create new space applications and services. The Office for Space Technology and Industry (OSTIn) at the Singapore Economic Development Board spearheads the country’s efforts in fostering a vibrant space industry where companies can capture opportunities arising from New Space trends.

Upcoming Events:
For companies seeking in-person opportunities to enter the Singapore market, there are several upcoming events of interest:

Singapore Airshow 2022: The biennial event is Asia’s largest and most influential international aerospace and defense exhibition for stakeholders to forge strategic alliances, collaborate for change to shape the future of global aviation industry. The event will take place in Singapore, Feb15-18, 2022.
Global Space and Technology Convention: Asia’s premier space and technology event, bringing the latest technology news, what’s hot in the satellite scene and space technology. The event will be held in Singapore, Feb 8-10, 2022.
IMDEX Asia: Asia Pacific’s leading naval and maritime defense show scheduled for April 25-27, 2023 in Singapore.
Rotorcraft Asia & Unmanned Systems Asia: Scheduled for April 25-27, 2023, the event brings together the convergence of rotorcraft and unmanned sectors and fosters an exchange of knowledge and synergies to elevate mobility solutions in the booming Asia Pacific market.

We are located in the U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet Haw Cheng NG
Aerospace & Defense Commercial Specialist
U.S. Embassy - Singapore

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United Arab Emirates

For the past 11 years, the UAE has been the leading U.S. export market in the Middle East and has quickly become a regional and global hub for space and aviation. The UAE is the best market in the region for ease of doing business and the country has made aerospace investments a key investment priority. The sector currently contributes approximately 15 percent to the UAE’s overall GDP and provides up to 750,000 jobs. As with almost all other countries, the UAE has experienced slower growth due to the COVID-19 global pandemic, but its attractive business environment and focus on economic diversity are helping the economy to rebound and remain a good long term market strategy.

Commercial Aircraft
Economic struggles brought by the COVID-19 crisis, will continue to slow the purchase of additional large civil aircraft from the UAE’s two major carriers—Emirates and Etihad— for the next several years. However, there will still be a strong demand for aircraft parts and maintenance, repair, and overhaul (MRO) services. Emirates Airlines is the largest operator of the Boeing 777, with Etihad, Air Arabia, and flydubai also having substantial fleets to maintain. Due to its large fleet sizes and MRO industry, the UAE is the top market for U.S. aircraft parts in the Middle East and the 7th largest globally.

Defense
From August 2020-July 2021, the UAE ranked 9th in U.S. defense exports, with $609 million in purchases. The UAE is second only to Saudi Arabia, who ranked first globally due to several large deals, overall topping $1.9 billion in purchases over the past year. With growing strategic ties between the United States and the UAE, as well as potential instability in the region, defense exports to the UAE are expected to remain strong for several years.

Space
In the past decade, the UAE has made great efforts to establish itself as an active participant in the commercial and civil space sectors. The UAE has sent a spacecraft to Mars, and had developed “Mars Science City” outside Dubai to help understand what conditions would be like when living on Mars. The UAE Space Agency and the Mohammed bin Rashid Space Center (MBRSC), are working closely with U.S. industry and NASA to strengthen cooperation between U.S. and Emirati companies and academia. The UAE is striving to also incorporate STEM and technology education into academic programs that will create a high-technology workforce capable of supporting future space research and development programs.

Upcoming Events:
For companies seeking in-person opportunities to enter the UAE market, there are several upcoming events of interest:

International Astronautical Congress: The 2021 edition of this show will be held in Dubai on October 25-29, marking the first time this conference and trade show is being held in the Middle East. This event addresses all aspects of the space sector—commercial, civil and military space.
Dubai Air Show: Scheduled for November 14-18, the Dubai Air Show is the largest aerospace and defense show in the Middle East, and draws a large attendance from other regions as well.
Dubai World Expo: Postponed from 2020, the Dubai World Expo’s U.S. Pavilion will highlight U.S. achievements in space.
Tradewinds: On March 6-8, 2022, Tradewinds will be the largest U.S.-government led trade mission and business development forum, which will feature meetings with U.S. commercial diplomats from over 20 countries in the Middle East, North Africa and Sub-Saharan Africa.

We are located in the U.S. Embassies & Consulates worldwide and major U.S. cities across the country. Contact us to learn more about how we can assist your exporting business.

Meet George Messiha
Aerospace & Defense Commercial Specialist
U.S. Embassy - Abu Dhabi, UAE

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