The Royal Bank of Scotland plc (RBS) announced today that it has agreed to finance the purchase of two Gulfstream IV-SP aircraft for National Air Services (NAS) of Saudi Arabia. The announcement was made during the first annual Middle East Business Aviation (MEBA) conference & exhibition in Dubai. The aircraft purchase is valued at over US$50 million and represents the first such collaboration between these two market leaders. RBS is one of the ten largest banks worldwide, and NAS is the largest and fastest-growing private aviation company in the Middle East.
Donal Boylan, Head of RBS Aerospace & Defence, which includes their Corporate Aircraft & Superyacht Financing Business, said: “RBS has already demonstrated its commitment to corporate and VIP aviation in the region, with a number of aircraft financed and several others in the pipeline. Both NAS and RBS expect this market to grow significantly over the next five years and, by working together, we look forward to enjoying an important share of that growth.”
Taher Agueel, Chief Executive Officer of NAS, said: “This agreement marks another significant step in the ongoing expansion of National Air Services. We continue to
diversify our business portfolio and move into new markets, and the acquisition of two new long-range Gulfstream business jets will further those dual aims.”
He added: “We are extremely pleased to make this announcement during MEBA, one of the region’s premier industry events, and in partnership with RBS, a global leader in commercial and corporate Aircraft Finance. Indeed, we see this agreement as just the first in what we expect will be a long and mutually beneficial relationship.”
RBS, as part of its international growth strategy, is currently opening four offices in the region, including Abu Dhabi and Dubai. The bank is already ranked first in the Middle East in Project and Export Finance, and is a global leader in this category as well as in Asset Finance. Worldwide, RBS holds the number one, two and three positions, respectively, in rail locomotive leasing, commercial shipping and commercial airliner financing. RBS has had private banking operations through its Coutts brand in the GCC, whose regional offices are in Dubai.
NAS, which was established in Riyadh in 1999, is Saudi Arabia’s only privately owned air transportation services company, operating a fleet of over 30 aircraft, making it by far the largest and fastest-growing such operation in the Middle East. The two aircraft being purchased will be delivered within the coming weeks and will support its thriving private aviation solutions, including NetJets Middle East (Fractional Aircraft Ownership & Leasing), Aircraft Management and Aircraft Charter, along with its unique hybrid solutions program.
About NAS: Since its establishment in 1999 by a group of Saudi Arabian investors, National Air Services (NAS) has become a leading provider of aviation services in the Middle East. Based in Riyadh, NAS provides its vast customer base in the region with comprehensive and innovative aviation services. Currently, NAS has a workforce of 700 employees drawn from 37 nationalities, with Saudis comprising 45 percent of the workforce.
NAS products and services offered include NetJets Middle East, which provides fractional aircraft ownership and leasing; Al Khayala Airlines, which targets business and first-class travelers; Aircraft Management Services, Aircraft Charter Services and other unique aviation solutions. NAS will launch a domestic low-cost carrier in Saudi Arabia in 2007. NAS has the fastest growing private aviation fleet in the Middle East, currently comprising more than 33 aircraft under management from global manufacturers such as Airbus, Boeing, Gulfstream, Dassault and Raytheon.
About The Royal Bank of Scotland Group: Founded in 1727, Royal Bank of Scotland (RBS) is the third largest financial services group in Europe by market capitalisation and the tenth largest in the world. It is a broadly based financial services group with operations spanning retail banking, corporate and commercial banking, financial markets activities, wealth management and insurance and specialist asset finance businesses.
RBS holds an AA Credit Rating and has total assets of circa US$1,600 billion. RBS Group has more than 36 million customers worldwide.
Since the year 2000, the RBS Group has made several acquisitions, including the STG£21 billion acquisition of Natwest and the US$10.1 billion acquisition of Charter One in the US. It has more recently made a strategic shareholding in (Investment) Bank of China to supplement its own Chinese banking operations.
