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A partner’s perspective on working with Sharakat

Saudi Arabia’s water scarcity is at the centre of a blossoming infrastructure market, with private partners at its core. Its prosperity is reflected in the success of a number of flagship projects

By SHARAKAT

As a government-backed company, TPI’s mission and growth plans have to fit in with the stated priorities of parent company Tawazun to continue to qualify for funding.

The company’s targeting of the aerospace sector is, therefore, no surprise. State-owned Mubadala Aerospace has been tasked with transforming Abu Dhabi into a global hub for aerospace – for passengers, pilot training, research and development, manufacturing and maintenance, repair and overhaul. If successful, this will create a significant home market for TPI’s components and will justify the firm’s choice of aerospace as its prime target for growth.

There is, however, significant competition. Several Asian cities, including Shanghai and Singapore, are vying to become aerospace hubs. While Abu Dhabi may not be able to compete on cost with China, a Gulf hub offers access to a wide pool of skilled labour and reduced exposure to a weak dollar, thanks to the UAE’s dirham-dollar peg.

TPI’s ambitions to engineer parts for the oil and gas industry also sit neatly with the Abu Dhabi government’s priorities. Having NOV as a customer gives TPI the credentials to go to the wider market in search of new clients.

TPI had its launch into precision manufacturing made relatively easy, through a mix of Tawazun’s investment and provision of customers. Now the firm needs to demonstrate that the equipment and expertise it has developed over the past three years can compete with international companies in order to win new customers on its own merit.