MOU represents landmark collaborative effort for aircraft financing
Cooperation aimed at meeting market of $470 billion by 2031
Abu Dhabi: The National Bank of Abu Dhabi (NBAD) and aircraft manufacturer Boeing [NYSE: BA] have signed an agreement to develop aircraft financing and leasing opportunities of mutual benefit in the Middle East market.
The memorandum of understanding effective immediately represents a landmark collaborative effort aimed at increasing investment opportunities for financial institutions in the UAE and the broader Middle East region involving large commercial aircraft.
The two leading firms committed to work together to identify and pursue projects involving structuring and arranging financing and leasing of Boeing products and services to current and potential regional customers.
Previously the two organizations have shared ideas to help stimulate the Middle East's involvement in the considerable opportunities associated with commercial aircraft investment which, as an asset class, has outperformed other alternatives even through economic uncertainties.
"Boeing has a long and valued relationship with the UAE, and NBAD has a talented team that leads in business innovation and is a trendsetting bank and aircraft lessor. Today's agreement represents the next logical step for both of us in meeting the needs of the growing Middle East aviation market," said Mike Cave, president of Boeing Capital Corporation, the manufacturer's financing and leasing unit.
In Boeing's latest 20-year commercial aviation market outlook, the Middle East is projected to become one of the largest aviation markets in the world over the next two decades with the need for 2,370 commercial jet aircraft with a value of U.S. $470 billion.
"The airline industry in the Middle East and the UAE in particular is very strong and growing significantly. The National Bank of Abu Dhabi would leverage its partnership with Boeing to support and grow this market," said Mark Yassin, the Senior General Manager of NBAD's Corporate and Investment Banking Division. "The Abu Dhabi strategic growth plans envision Abu Dhabi to be a hub of the aviation industry and our partnership with Boeing creates great business opportunities for NBAD and also confirms NBAD's commitment to the growth of Abu Dhabi."
The NBAD and Boeing agreement comes as global economic conditions continue to improve and aircraft financing markets are at their strongest point in several years.
In particular, the Middle East's support for the capital needed to pay for or finance aircraft deliveries in the region has significantly increased in recent years.
"Boeing's experience is that, for 2012, close to 60 percent of our deliveries in the Middle East have been paid for or financed by Middle Eastern sources. That's a doubling over a year ago and a clear indication that the promise of aircraft investment opportunity that we have advocated is being realized here," said Boeing's Cave.
The non-exclusive agreement will focus on creating opportunities for NBAD to advise, arrange and supply financing to support Boeing new-aircraft sales and used-aircraft remarketing in the region, with Boeing engaging with the bank in joint projects, training and issues advocacy.
One key area will be on improving the region's aircraft financing infrastructure through initiatives like the global Cape Town Treaty on mobile assets, which reduces risks for financiers by providing a standardized legal framework for aircraft deals in nations that ratify the treaty and its associated declarations.
About NBAD
The National Bank of Abu Dhabi (NBAD), The Number One Bank in UAE, was incorporated in 1968 and is listed on the Abu Dhabi Securities Exchange (ADX), under stock code (NBAD).
Ranked as one of the top 50 safest banks in the world, NBAD currently operates across 14 countries on four continents.
NBAD has a network of 123 branches and more than 550 ATMs to provide banking services to customers all over the UAE.
Besides brick & mortar branches, NBAD provides 24 hour internet banking access through NbadOnline and NbadDirect, the SMS-based payment service (Arrow) as well as account access and personalised customer support through its 24-hour Call Centre.
NBAD's overseas network stretches from Oman, Kuwait, and Bahrain in the G.C.C.; Egypt, Libya, and Sudan in Africa; UK, France, and Switzerland in Europe; Hong Kong, Shanghai-China, Malaysia, and Jordan in Asia to Washington, D.C. in the U.S.A. Overall, NBAD has nearly 55 branches and 60 ATMs outside the UAE. NBAD provides its customers with a wide variety of financial services targeting all segments of the consumer and corporate markets.
NBAD is rated senior long term/short term A+/A-1 by Standard and Poor's, Aa3/P1 by Moodys and AA-/F1+ by Fitch giving it one of the strongest combined rating of any Middle Eastern financial institution.
About Boeing:
Boeing in the Middle East
Boeing's relationship with the Middle East extends back to 1945. Since then, Boeing has established a number of offices across the region, first in Riyadh in 1982, then a dedicated Boeing Defense, Space and Security (BDS) office in Abu Dhabi in 1999, a regional headquarters in Dubai in 2005 and a new office in Doha in 2010. In addition, Boeing has field service teams across the region and two distribution centers for airplane spare parts in Dubai.
Boeing works with a variety of customers and partners in the Middle East: with the region's ambitious airlines that have successfully made the Middle East a global air transport hub; with defense forces that use state-of-the-art technology to secure their land and sea borders, while providing humanitarian assistance where required; with communications enterprises using satellite technology to link the region with the world; and with schools, universities and charities that are making a visible difference in their communities.
The Boeing Company
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. A top U.S. exporter, the company supports airlines and U.S. and allied government customers in 150 countries. Boeing products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. For more information about Boeing please visit: www.boeing.com.
© Press Release 2012
