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Economy

Sanad and Etihad Engineering Announce Renewal of Long-Term Lease Agreement

Sami MohamedBy Sami MohamedFebruary 5, 2026No Comments3 Mins Read
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Sanad, a wholly owned subsidiary of Mubadala Investment Company, has announced the renewal of a long-term lease agreement with Etihad Airways Engineering, one of the world’s leading aircraft maintenance, repair, and overhaul providers and part of Abu Dhabi Aviation Group. The aircraft maintenance agreement extends Sanad’s presence at the advanced facility near Zayed International Airport, reinforcing the partnership between two major aviation companies in the emirate.

The signing ceremony took place between Bahaa Salama, General Manager of the Maintenance, Repair, and Overhaul Division at Sanad, and Daniel Hoffman, CEO of Etihad Airways Engineering, with attendance from Mansoor Janahi, Managing Director and CEO of Sanad, and Mahmoud Al Hammadi, CEO of Abu Dhabi Aviation Group. Under the terms of the agreement, Sanad will continue leasing 40,000 square meters of land and facilities within Etihad Airways Engineering’s 550,000-square-meter maintenance facility.

Aircraft Maintenance Partnership Strengthens Abu Dhabi Aviation Sector

The renewed agreement reinforces a long-standing partnership that has existed for more than 38 years, according to company statements. As Sanad enters a new growth phase with expanding capabilities and increased workforce in both Abu Dhabi and Al Ain, the lease ensures operational continuity at its original headquarters. The strategic collaboration demonstrates both companies’ shared commitment to supporting Abu Dhabi’s long-term aviation ambitions.

Additionally, Sanad will continue providing maintenance, repair, and overhaul services for LEAP, GEnx, V2500, and Trent 700 engines from its Abu Dhabi headquarters. The company serves more than 55 major global airlines and original equipment manufacturers from this location. The facility’s extensive space enables Sanad to enhance engine operations, expand future capabilities, and achieve its global leadership aspirations in the aviation maintenance industry.

Expansion to Al Ain Complements Abu Dhabi Operations

The lease renewal coincides with Sanad’s announcement of expanded presence in Al Ain through launching the first GTF engine maintenance center and new testing complex. The two facilities in Abu Dhabi and Al Ain form a unified, integrated platform for engine maintenance across the United Arab Emirates. This dual-location strategy increases Sanad’s capacity, strengthens supply chain resilience, and accelerates development of specialized technical expertise.

Mansoor Janahi emphasized that the long-term agreement reflects the solid partnership with Etihad Airways Engineering and reinforces Sanad’s commitment to driving growth in Abu Dhabi. He stated that the Abu Dhabi headquarters remains a fundamental component of operational activities despite expansion in Al Ain. The lease renewal enhances capacity and enables workforce development while delivering world-class engine services to customers globally, according to the company executive.

Meanwhile, Mahmoud Al Hammadi highlighted the importance of collaboration between two leading aviation companies in Abu Dhabi. He noted that Sanad’s continued operations at the facility near Zayed International Airport will strengthen shared technical capabilities and support the emirate’s long-term aviation strategy. Abu Dhabi Aviation Group expressed pride in supporting Sanad’s efforts to establish global presence in maintenance, repair, and overhaul services from its primary Abu Dhabi facility.

Supporting Abu Dhabi’s Aviation Vision

The agreement contributes to Abu Dhabi’s vision for building a stronger and more advanced aviation sector future. By providing operational space at Zayed International Airport facilities, Sanad will expand capacity and engine programs while developing a highly qualified workforce. The advanced infrastructure supports next-generation maintenance services and strengthens relationships with Etihad Airways Engineering, enhancing Abu Dhabi’s position as a center for engineering excellence.

However, specific financial terms of the lease agreement were not disclosed by either company. The partnership is expected to play a vital role in enhancing development and resilience of the local aviation sector, driving industrial growth, supporting national talent, and cementing Abu Dhabi’s status as a leading global aviation hub in the coming years.

Sami Mohamed
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Sami Mohamed is a journalist at Abu Dhabi News, reporting on breaking stories and daily news updates. His work emphasizes verification, concise writing, and presenting the most important details without unnecessary noise.

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