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Sanad Launches New Asset Management Division

Sanad Launches New Asset Management Division
Abu Dhabi-based aerospace engineering firm Sanad has announced the launch of a new asset management division at the Dubai Airshow, marking a strategic expansion of its business operations. As a subsidiary of Mubadala, Abu Dhabi’s sovereign investment company, Sanad has introduced Sanad Asset Management, a platform designed to consolidate engine leasing, parts trading, and lifecycle support services under one umbrella.
Strategic Expansion and Industry Positioning
Supported by an investment exceeding $100 million, the new division aims to enhance collaboration within the aviation sector by fostering partnerships with maintenance, repair, and overhaul (MRO) providers, operators, parts traders, and aircraft lessors. This initiative reflects Sanad’s ambition to establish a comprehensive aviation asset management network and to strengthen its footprint in the rapidly expanding global aviation aftermarket. Industry projections estimate that the global engine aftermarket segment will grow annually by approximately 4% to 6% over the next decade, underscoring the potential for sustained demand.
Sanad has already begun implementing its strategy through several key acquisitions, including Rolls-Royce Trent 700 and International Aero Engines (IAE) V2500 engines. With roughly 1,600 Trent 700s and over 5,000 V2500s currently in operation worldwide, the demand for dependable engine parts and lifecycle support remains robust. Recent transactions include the purchase of four Trent 700 engines from Etihad Airways, which are slated for maintenance at Sanad’s Abu Dhabi facility, as well as an additional Trent 700 acquired from Rolls-Royce Partners Finance. The company has also expanded its V2500 portfolio by acquiring two V2500-A5 engines from Fortress Transportation & Infrastructure Investors and Magellan Aviation Group.
Challenges and Market Response
Despite the promising outlook, Sanad’s entry into asset management presents significant challenges. The division faces intense competition from well-established players in the MRO sector and must prioritize the development of strong partnerships with key industry stakeholders. Furthermore, the integration of new technologies into existing asset management frameworks introduces additional complexity that the company will need to manage carefully.
Market reactions to the launch have been mixed. Some investors regard the move as a strategic expansion that could enhance Sanad’s market position and support long-term growth. Conversely, others remain cautious, questioning the immediate impact of the new division on the company’s overall financial performance. Competitors are likely to respond with increased collaboration efforts or more aggressive strategies to protect their market share.
Nonetheless, Sanad’s leadership remains confident that the new asset management division will position the company at the forefront of the aviation aftermarket, enabling it to capitalize on sector growth and evolving industry demands.

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