What's Happening?
Sanad, a Mubadala-backed MRO provider, is investing $100 million into its asset management business to enhance its aftermarket services. This investment is part of a broader strategy to focus on cost-efficient maintenance alternatives, particularly through the use of used serviceable material (USM) and mature engine assets. The company, based in Abu Dhabi, launched its asset management division at the Dubai Airshow in November 2025. Sanad's approach involves acquiring mid-life or rundown engines, dismantling them, and using the parts to support maintenance events more cost-effectively. The company has initially focused on mature engine platforms like the IAE V2500 and Rolls-Royce Trent 700, which power Airbus A320ceo and A330 aircraft. Sanad plans
to expand its focus to include newer-generation engines and is investing in a new MRO facility in Al Ain for Pratt & Whitney GTF engines.
Why It's Important?
Sanad's investment in asset management is significant as it reflects a shift in the aviation maintenance industry towards more sustainable and cost-effective practices. By focusing on used serviceable materials and mature engine assets, Sanad aims to reduce costs and improve maintenance flexibility, which is crucial for airlines looking to optimize their operations. This strategy not only supports Sanad's growth but also aligns with broader industry trends towards sustainability and efficiency. The investment in new facilities and workforce expansion further underscores the company's commitment to enhancing its service offerings and meeting the evolving needs of the aviation sector.
What's Next?
Sanad plans to continue expanding its asset management capabilities, potentially exploring additional engine types beyond the V2500 and Trent 700. The company is also considering expanding its aftermarket capabilities to include auxiliary power unit (APU) maintenance. Workforce growth is a priority, with plans to increase staff numbers and develop local talent through trainee and internship programs in partnership with UAE universities. These initiatives are expected to support Sanad's long-term growth and strengthen its position in the global MRO market.
