UAE aviation group to divest Dh674 million in non-core assets as it strengthens aviation and MRO focus.
Abu Dhabi: Abu Dhabi Aviation (ADA) is moving ahead with the sale of Dh674 million worth of non-core real estate and financial assets as the group focuses on expanding its aviation and maintenance, repair and overhaul (MRO) operations.
The Abu Dhabi-listed aviation services company said its board approved the divestment of part of its non-core portfolio after the reporting period. The assets, with a combined carrying value of Dh674 million, were classified as held for sale as of June 30.
Despite the planned asset sale, ADA ended the first half of 2026 with a net cash position of Dh900 million.
ADA is one of the MENA region’s leading commercial helicopter and fixed-wing operators and a major aviation group backed by UAE state-owned ADQ. The company employs more than 9,500 people and operates a fleet of 75 aircraft along with five flight simulators.
Abu Dhabi Aviation said it is directing capital towards its core aviation and MRO operations, with proceeds from the planned asset disposals expected to support expansion in these businesses and enhance shareholder returns.
The strategy comes as the group reported a 28.2 per cent year-on-year increase in first-half revenue to Dh4.66 billion, despite a challenging regional operating environment during much of the period.
Defence MRO drives revenue growth
Abu Dhabi Aviation’s MRO business was the main contributor to growth, with revenue rising 30.6 per cent to Dh4.18 billion and accounting for 89.6 per cent of total group revenue.
Strong demand for defence MRO services and fleet-support activities continued, while contracted programmes at AMMROC progressed into full execution.
The growth helped offset weaker performance in some areas of the business, including third-party fly-in maintenance and certain rotary-wing operations, where customers delayed discretionary work amid ongoing regional uncertainty.
Mahmood Alhay Alhameli, Group CEO, said the diversity of ADA’s businesses helped the company navigate challenging conditions, with its defence-related operations more than compensating for softer segments.
The group maintained a strong balance sheet at the end of June, with Dh2.05 billion in cash and cash equivalents against total borrowings of Dh1.15 billion, resulting in a net cash position of Dh900 million.
Debt stood at 1.1 times LTM EBITDA, reflecting what management described as a conservative leverage position.
Abu Dhabi Aviation said the approved divestment aligns with its strategy of directing capital towards its core aviation and maintenance platform. Proceeds from the planned disposals are expected to support growth across aviation and MRO operations while strengthening the group’s ability to deliver shareholder returns.
The company also maintains a sizeable portfolio of investments outside its core aviation activities. Its diversified financial assets and investment properties were valued at Dh1.89 billion as of June 30, broadly unchanged from the end of 2025.
How will Abu Dhabi Aviation use the capital?
Abu Dhabi Aviation’s priorities for the remainder of 2026 will focus on expanding its core aviation operations and strengthening its key business segments.
Abu Dhabi Aviation said it is focused on expanding MRO capacity, improving facility utilisation, strengthening international operations and enhancing efficiency across the group.
At Etihad Engineering, an additional widebody hangar was substantially completed during the first half, supporting future growth in maintenance capacity. AMMROC also continued to expand its blade shop and Line Replaceable Unit capabilities.
The group is pursuing regional growth opportunities, particularly in Africa’s oil and gas aviation markets, while fleet modernisation remains a key priority.
ADA is also advancing its plans in advanced air mobility through its partnership with Archer Aviation, with the long-term goal of introducing electric air taxi services in Abu Dhabi.
Focus shifts to MRO expansion and regional growth
For the remainder of 2026, Abu Dhabi Aviation said it will prioritise increasing MRO capacity and utilisation, expanding internationally, improving operational efficiency and strengthening integration across its businesses.
The group said an additional widebody hangar at Etihad Engineering was substantially completed during the first half, supporting the next phase of maintenance capacity growth. AMMROC also continued to expand its blade shop and Line Replaceable Unit capabilities.
ADA is also targeting regional expansion, particularly in Africa’s oil and gas aviation markets, while fleet modernisation remains a central element of its long-term strategy.
Advanced air mobility remains another area of focus for Abu Dhabi Aviation through its partnership with Archer Aviation, with the long-term objective of introducing electric air taxi operations in Abu Dhabi.
Alhay Alhameli said the group was entering the second half of the year as “a more focused Group” after choosing to direct capital towards its core businesses.
“Abu Dhabi Aviation will continue to strengthen its position across the region and beyond, delivering sustained value for our shareholders while investing in the long-term future of the Group,” he said.
