Embraer anticipates further defense aircraft business in the Middle East following a landmark agreement with the United Arab Emirates for C-390 military transport jets, the head of its defense division told Reuters on Monday. The deal, which covers up to 20 aircraft - 10 confirmed purchases and 10 options - marks the first adoption of the C-390 by a Middle East state and makes the UAE the 12th country to select the type.
Bosco da Costa Junior, Embraer’s defense chief, said the contract's structure is notable and signals potential broader uptake across allied governments. "The Middle East is a strategic region for us," he said, noting that Embraer is actively promoting both the C-390 and the Super Tucano light attack aircraft in the area.
Speaking about the 10 options included in the agreement, Costa Junior said he did not think they were included merely for formality. "I don’t think those 10 options were put into the contract simply for the sake of having options," he said. He added: "I believe we will see here government-to-government mechanisms ... with one nation facilitating the entry of other nations into the C-390 operators’ club," while declining to identify any potential follow-on purchasers.
The company pointed to precedent in Europe, where government-to-government approaches helped secure orders for the C-390. In that region, Sweden joined an agreement led by the Netherlands and Portugal acquired purchase options tied to orders by other European NATO countries.
Market reaction to the UAE deal was positive for Embraer shares, which rose 2.5% after the announcement, outpacing Brazil’s benchmark Ibovespa index that fell 0.9% on the same day. Analysts at Itau BBA estimated the firm portion of the UAE order to be worth approximately $1 billion.
In the Middle East, Embraer has pursued opportunities to replace older fleets such as Saudi Arabia’s Lockheed Martin C-130s, although company CEO Francisco Gomes Neto previously told Reuters that the outlook for a Saudi order had dimmed. The UAE operates Lockheed Martin C-130s and Boeing C-17s at present.
Costa Junior addressed the influence of global security tensions on procurement timelines, saying ongoing conflicts had not directly accelerated sales. Instead, he argued these conditions were focusing government procurement decisions on operating costs and asset availability, which in turn is prompting fleet replacement choices.
Embraer provided a market estimate for the military cargo segment, forecasting global demand for 400 to 480 aircraft over the next 20 years, driven largely by the need to replace aging platforms. The company highlighted that roughly 260 cargo aircraft worldwide are approaching or have exceeded 45 years of service. "These aircraft will need to be replaced," Costa Junior said, adding that the C-390 is ready to operate in any region.
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