Nov. 12 (Bloomberg) -- Boeing Co., the world's second-biggest manufacturer of commercial airliners, won an order for 100 planes valued at $13.7 billion from Dubai Aerospace Enterprise, the Persian Gulf emirate's vehicle for creating one of the world's biggest airport and aviation-services companies.

Dubai Aerospace ordered 70 of Chicago-based Boeing's 737 Next Generation aircraft, 15 of the 787 Dreamliner model, 10 777-300ERs and five 747-8 freighters for the company's leasing unit. Dubai Aerospace aims to build DAE Capital into a multibillion-dollar lessor that competes with AIG's International Lease Finance Corp. and General Electric Co.'s GE Commercial Aviation Services.

The plane purchase, announced today at the Dubai Air Show, will allow DAE Capital ``to offer all airlines attractively priced operating-lease terms and will help us to become a major force in this industry,'' DAE Capital Chief Executive Officer Robert Genise said.

Purchases from Middle Eastern airlines are driving growth at Boeing and Toulouse, France-based Airbus SAS as oil-rich states use their wealth to build tourist and travel hubs. Airbus, the world's biggest planemaker, won a preliminary order from Dubai Aerospace earlier today for 100 aircraft valued at about $13.5 billion. DAE signed a letter of intent for 70 A320s and 30 A350 XWBs.

Airbus won a contract yesterday from Emirates, the biggest Arab carrier, worth $31 billion. Boeing orders announced at the Dubai show include a $6.1 billion commitment from Qatar Airways.

DAE Global Plans

``We expect to have a strong presence in the Middle East, with at least 25 percent of our fleet going to carriers in the region,'' DAE's Genise said. ``We'll have a strong presence in the Asia Pacific, placing around 30 to 35 percent of the planes there, 15 percent in the Americas, and the rest in Europe.''

The Gulf region has become increasingly important to Boeing, Commercial Airplanes Chief Scott Carson said after the DAE announcement.

``We've done a tremendous amount of business the last several years and gained an important market position,'' Carson said. ``Operators like Qatar Airways, Etihad and Emirates are critical customers for our wide-body products. We anticipate it will be a high-growth region as we move into the next decade.''

Boeing and Airbus are neck-and-neck for bragging rights as largest manufacturer of airliners. Airbus Chief Executive Officer Tom Enders said today that 2007 deliveries will exceed 450. Boeing reiterated that it expects to move 440 to 445 planes.

Carson said Boeing had orders for about 900 planes coming into the Dubai show. He declined to make specific projections about the order backlog expected at the end of the year.

Engine Choices

Dubai Aerospace chose engines built by CFM International, a joint venture between General Electric and Paris-based Safran SA, for the 737s. General Electric is the sole provider for the 747-8s and the 777-300ERs.

Genise said DAE hasn't chosen propulsion systems for the 787s, which can be powered by either General Electric GENX engines or the Trent made by London-based Rolls-Royce Group Plc. Fairfield, Connecticut-based GE and Rolls-Royce face ``a good contest'' to win the contract, he said.

The sheikdom of Dubai, in the United Arab Emirates, has earmarked more than $82 billion for investment in the aviation and aerospace industry to create a transport hub for the Persian Gulf. Money earned from real estate, tourism and state companies is being invested overseas as the emirate's economy expands at more than 10 percent a year.

DAE Ambition

Dubai Aerospace abandoned plans to take over Auckland International Airport Ltd., New Zealand's busiest, in September for almost $2 billion after two city councils with a combined 23 percent holding objected.

``An order of this size at one go certainly catapults them well up the rankings of aircraft lessors globally,'' Richard Pinkham, an analyst at the Centre for Asia Pacific Aviation in Singapore, said in an interview.

Arab airlines may boost their combined fleet more than 60 percent to 900 planes by 2015, according to the Arab Carriers Organization. Airbus won orders and commitments valued at $32 billion from Arab customers at the 2007 Paris Air Show in June, as Middle Eastern carriers snubbed Boeing.

To contact the reporter on this story: Massoud A. Derhally in Dubai at mderhally@bloomberg.net; Andrea Rothman in Dubai at aerothman@bloomberg.net

Last Updated: November 12, 2007 08:44 EST