A joint venture between Mubadala Development Company and the US-based United Technologies Corporation, for the maintenance of the military aircrafts in Abu Dhabi, has been approved by the European Commission (EC).

With this approval, the strategic investment body of the Abu Dhabi Government, Mubadala, shall be able to develop its aerospace industry for the customers in the region.

The joint venture aims at capturing the regional market, has been assessed at US$4 billion (Dh14.7bn) per year and would provide service to the fixed-wing and rotorcrafts of the air forces, which includes F-16 fighter jet and Black Hawk helicopters.

In Abu Dhabi's move to diversify in the non-oil economy, the maintenance, repair and overhaul (MRO) of aircrafts is considered to have substantial market in the Gulf, as the military and commercial aviation fleets are increasing.

According to the agreement, Mubadala shall jointly work with United Technologies subsidiary, Sikorsky Aerospace Services, an established and experienced organization in the maintenance of military aircrafts. This joint venture is likely to create additional 4,000 new jobs in the Emirates.

The joint venture was first announced at the IDEX military expo in Abu Dhabi during February. Thus far, the maintenance of the military aircrafts for the region is being done in the US and Europe.

David Adler, the president of Sikorsky Aerospace Services, said: "This year that the goal of the military MRO initiative was to create a one-stop shop for all logistics needs for the UAE Armed Forces, in addition to serving the wider region. As the joint venture is formed, a team from Sikorksy Aerospace Services will base themselves in the emirate to help create a centre for first and second-line maintenance as well as depot-level repairs."