Dubai's ambitions to become a major aviation hub shifted gears on Thursday, when private equity firm Dubai International Capital announced the purchase of a 3.12% stake in Airbus's parent, European Aeronautic Defence and Space.

It's the latest development in a string of Airbus-friendly investments for the emirate, which unveiled a $15 billion Dubai Aerospace Enterprise project for research, manufacturing and services last year. Not only did Dubai-based Emirates Airlines buy $2.6 billion worth of planes from the European manufacturer last month, but expansion plans for Dubai International Airport will create a terminal designed exclusively for the Airbus A380 superjumbo jet by 2009.

And the 3.12% stake in EADS, which has been valued at 614 million euros, could be a strategic starting point for Dubai International Capital, a subsidiary of government-owned Dubai Holdings. Although the $6 billion private equity firm said it would not seek a board seat or take "an active role" with European Aeronautic Defence and Space , it added that it wanted "a strategic relationship with the EADS management and shareholders."

"They're not trying to influence the company," said Doug McVitie, managing director of Arran Aerospace. "It's primarily to increase Dubai's pivotal role in the Middle East. It's another element in their construction of the biggest aerospace industry hub."



An EADS spokesman said that the sale was "good news" and that the company "always wanted a shareholder structure that's as broad as possible." As well it should: the Airbus unit has struggled over the past two years, with long-running delivery delays and manufacturing problems with its A380 superjumbo jet leading to the high-profile departure of several executives. (See "Airbus Rues Huge Losses") The injection of private investment could ease the gridlock that has emerged between the governments of France and Germany over the company's dual-governance structure.

The power balance of EADS's major shareholders is divided between the French government's 15% stake, the Lagardère Group (other-otc: LGDDF.PK - news - people )'s 15% stake, which is being reduced to 7.5%, DaimlerChrysler (nyse: DCX - news - people )'s 15% stake and a 7.5% stake owned by a German investor consortium, including some German states. Russia entered the fray last year with a controversial 5% stake held through state-owned Vneshtorgbank.

With France and Germany wishing to retain influence, the arrival of Dubai could be the answer to political prayers. "The EADS and the government reaction will be ecstatic," said Arran Aerospace's McVitie, adding that the stake represented "money with no overt strings attached." President Nicolas Sarkozy of France said last month that he wanted to attract new investors to EADS but worried that the restrictive shareholder pact that limited voting rights would deter new arrivals.