BAE Systems, a major British defense company, is in discussions with the Abu Dhabi government-owned Mubadala Development Company to establish an aerospace business in the United Arab Emirates. Simon Keith, the regional managing director of BAE Systems, confirmed the talks during a defense conference in Abu Dhabi, stating that Mubadala expressed interest in developing aerospace expertise and sought BAE’s partnership.

As reported by Reuters, the specifics of the potential joint venture are still being evaluated. Keith noted that Mubadala is considering various roles for BAE, including areas such as materials, electronics, manufacturing, or assembly. He also mentioned that BAE will invite its aerospace partners from the UK to participate in this initiative.

Keith highlighted the significance of the Middle East market for BAE Systems, indicating that it accounts for approximately 16 to 20 percent of the company’s total turnover. He remarked on a gradual increase in sales in the region over recent years, suggesting that this trend is likely to continue and may even accelerate over the next five years.