UAE Strengthens Aerospace Sector with EPI and Etihad Engineering Partnership

Strengthening National Aerospace: The EPI and Etihad Engineering Collaboration

We are witnessing a significant evolution in the United Arab Emirates’ industrial landscape, marked by a strategic convergence between the defense and commercial aviation sectors. At the Dubai Airshow 2025, a pivotal announcement was made regarding a collaboration between EPI, the precision engineering arm of EDGE Group, and Etihad Engineering, a global leader in MRO services. This partnership represents a calculated step toward localizing critical aerospace manufacturing capabilities.

The agreement focuses on the manufacturing and machining of aircraft wheel hubs, a vital component in the aviation supply chain. By moving this specific manufacturing process to domestic facilities, the collaboration aims to reduce dependency on international suppliers and enhance the operational efficiency of the UAE’s aviation sector. This move is not merely a commercial transaction but a structural shift intended to bolster the nation’s sovereign industrial capabilities.

For industry observers, this partnership signals the maturation of the UAE’s aerospace ecosystem. It demonstrates how precision engineering capabilities, originally honed for defense applications under EDGE Group, are being effectively transferred and applied to commercial aviation needs. We analyze the details of this agreement, the profiles of the entities involved, and the broader economic implications for the region.

Defining the Strategic Alliance

The core of this collaboration involves two heavyweights in the UAE’s industrial sector. EPI serves as the cornerstone of precision engineering for EDGE Group, known for manufacturing complex metallic components for air, land, and sea platforms. Their expertise extends to surface treatment, heat treatment, and coating, serving major global clients including Airbus and Boeing. On the other side of the agreement is Etihad Engineering, recognized as the largest commercial MRO facility in the Middle East. Recently acquired by Abu Dhabi Aviation (ADA), Etihad Engineering handles heavy maintenance and component repair for massive fleets, including the Airbus A380 and Boeing 787.

Under the terms of the agreement announced at the Dubai Airshow, the two entities will collaborate on the machining of aircraft wheel hubs. While this may appear to be a specific technical niche, the implications are broad. The ability to machine and repair these hubs domestically allows for faster turnaround times for aircraft maintenance. Instead of shipping components abroad for processing, a practice that incurs logistical costs and time delays, the work will now be performed within the UAE.

This initiative leverages EPI’s advanced manufacturing facilities to support Etihad Engineering’s MRO requirements. It is a practical application of industrial synergy, where the technical certifications and machinery of one entity resolve the supply chain needs of another. We see this as a clear example of how vertical integration within Abu Dhabi’s aviation sector is beginning to yield tangible operational benefits.

“This collaboration is a milestone for the ‘Make it in the Emirates’ initiative, driving industrial growth and aerospace self-sufficiency.”, Michael Deshaies, CEO of EPI.

Economic Impact and “Operation 300bn”

To understand the weight of this partnership, we must view it through the lens of the UAE’s national industrial strategy, “Operation 300bn.” This government initiative aims to increase the industrial sector’s contribution to the GDP from AED 133 billion to AED 300 billion by 2031. The collaboration between EPI and Etihad Engineering directly supports this goal by creating high-value industrial output within the country. By manufacturing aerospace-grade parts locally, the partners are contributing to the diversification of the economy away from oil dependence.

Furthermore, the deal is closely aligned with the In-Country Value (ICV) program. The ICV program is designed to redirect public and private spending back into the local economy. When Etihad Engineering pays EPI for machining services, that capital remains within the UAE’s financial ecosystem rather than flowing to foreign MRO shops or manufacturers. This retention of economic value is a critical component of sustainable development and national wealth generation.

The “Make it in the Emirates” initiative also plays a central role here. By localizing the production of wheel hubs, the UAE is transitioning from a buyer of aerospace technology to a manufacturer. This shift is essential for long-term economic resilience. It fosters a skilled local workforce, encourages technology transfer, and builds an industrial base capable of supporting complex engineering projects in the future.

Supply Chain Sovereignty and Future Implications

The global aviation industry learned harsh lessons regarding supply chain fragility during the COVID-19 pandemic. Disruptions in logistics grounded fleets and delayed essential maintenance worldwide. By establishing the capability to machine and repair critical components like wheel hubs domestically, the UAE is effectively insulating its aviation sector from future global supply chain shocks. This concept of “supply chain sovereignty” ensures that the nation’s fleets can remain operational regardless of external logistical challenges.

Looking ahead, we anticipate that this collaboration could serve as a template for further expansion. EPI is actively expanding its facilities to handle larger components and higher volumes, while Etihad Engineering targets a doubling of its revenue by 2030. If the machining of wheel hubs proves successful, it is plausible that the partnership will expand to cover other complex aircraft components. This could eventually lead to a scenario where a significant portion of aircraft MRO parts are manufactured or repaired entirely within the UAE.

The synergy between a defense-focused entity like EDGE and a commercial giant like Etihad Engineering also suggests a blurring of lines between military and civil industrial bases. This dual-use approach to industrial capability maximizes the return on investment for infrastructure and technology. As these entities continue to integrate their operations, the UAE solidifies its position not just as a global transit hub, but as a center of excellence for aerospace engineering and manufacturing.

Concluding Section

The collaboration between EPI and Etihad Engineering marks a definitive step forward for the UAE’s aerospace sector. By localizing the machining of aircraft wheel hubs, these entities are addressing immediate operational needs while contributing to the long-term strategic goals of “Operation 300bn” and the In-Country Value program. The partnership highlights the growing maturity of the local industrial base and its ability to deliver precision engineering solutions that meet rigorous international standards.

As we look to the future, the success of this initiative will likely encourage further cooperation between the defense and commercial sectors. The transition from importing solutions to creating them domestically is well underway, positioning the UAE to become a self-reliant powerhouse in the global aviation industry.

FAQ

What was announced by EPI and Etihad Engineering?
At the Dubai Airshow 2025, EPI and Etihad Engineering announced a strategic collaboration to manufacture and machine aircraft wheel hubs domestically within the UAE.

How does this benefit the UAE economy?
The partnership supports the “Operation 300bn” strategy and the In-Country Value (ICV) program by retaining economic value within the country and reducing reliance on foreign suppliers.

What are the roles of the companies involved?
EPI, a subsidiary of EDGE Group, specializes in precision engineering and manufacturing. Etihad Engineering is a leading global provider of aircraft Maintenance, Repair, and Overhaul (MRO) services.

Sources

• EDGE Group Press Release