Dubai Aerospace eyes sale of Jordan’s Joramco: The MENA region’s largest aircraft-leasing company Dubai Aerospace Enterprise (DAE) is said to be mulling the sale of its aircraft maintenance unit, Joramco, Bloomberg reports, citing people it says are familiar with the matter. DAE reportedly tapped Morgan Stanley for the transaction, which could see it divest its entire holding, good for an 80% stake, in the Jordan-based company. Dubai Aerospace is a subsidiary of Dubai sovereign wealth fund the Investment Corporation of Dubai.

Background: DAE acquired the 80% stake in Joramco from the now collapsed private equity firm Abraaj Group back in 2016, with Royal Jordanian airline still holding the remaining 20%.

The sale comes amid hot demand for jet maintenance providers as delays in new jet deliveries by Boeing and Airbus, along with a global aircraft shortage, push airlines to extend the life of older planes. The company plans to open a new hangar by this month to accommodate this growth, according to Bloomberg.

About Joramco: The company serves more than 130 customers across over 60 countries through five hangars and 10 workshops, according to DAE’s investors presentation (pdf). Most of its business is concentrated in Europe (58%), followed by the Middle East (34%) and South Asia (4%). The MRO provider reported a 35% rise in sales in 9M 2024.

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