Abu Dhabi government-owned investment fund Mubadala Development Company has launched an aircraft component and engine financing company.

Sanad Aero Solutions will work with airlines as well as component and engine manufacturers alongside Mubadala’s existing aircraft maintenance companies, SR Technics and Abu Dhabi Aircraft Technologies.

The new company has already agreed two deals, worth a total of $130m.

It has signed a $100m deal for 12 engines with German carrier Air Berlin. This contract includes engine maintenance work to be carried out by SR Technics as part of the 10-year contract.

Under a second deal, Sanad will also provide financing of more than $30m over a 10-year period as part of a contract between SR Technics and Abu Dhabi carrier Etihad.

Mubadala Aerospace, another subsidiary of Mubadala, estimates that the market for spare parts is worth about $45bn a year, and that carriers spend more than $40bn on maintenance each year.

The number of commercial aircraft in operation is expected to increase to more than 27,000 by 2020 which could cause maintenance costs to rise to more than $60bn a year.