Dubai Aerospace Enterprise Ltd (DAE), owned by Dubai’s sovereign wealth fund, is contemplating the sale of its aircraft maintenance division. The company is reportedly working with Morgan Stanley to explore the potential sale of its 80% stake in Jordan-based aircraft maintenance, repair, and overhaul firm Joramco.

DAE acquired this 80% stake in 2016 from the now-defunct Abraaj Group, while the remaining 20% is held by Jordan’s state-owned airline. Officials familiar with the situation noted that discussions are at an early stage, and there is no guarantee that a deal will be finalized. Representatives for DAE and its parent company, the Investment Corporation of Dubai, have not provided comments on this matter, and Morgan Stanley has also declined to comment.

Joramco, established over 60 years ago as the engineering unit for Royal Jordanian, provides maintenance services to clients across Europe, the Middle East, Africa, and South Asia from its facility in Amman. The company is set to open a new hangar as early as March to meet the growing demand for jet maintenance services. This surge in demand has been fueled by delays in new aircraft deliveries from Boeing Co. and Airbus SE, alongside a global shortage of available planes, prompting airlines to extend the life of their older aircraft.

DAE has positioned itself as the largest plane-leasing company in the Middle East, having expanded its fleet to approximately 500 aircraft with a total value of $20 billion. Recent acquisitions have included regional jet lessor Nordic Aviation Capital in a deal worth over $2 billion.