Business in the Middle East, indeed, is looking up. There is a growing demand for private charter flights as the responsibilities of top executives based in the region involve quick and frequent trips abroad

During the 2007 Dubai Air Show, Saudi Prince Alwaleed bin Talal casually signed a cheque for an undisclosed amount to privately own an A380 superjumbo jet dubbed as the “Flying Palace”. Such is the money power in the Middle East. Three years down the line, the Middle East continues to wield the “money clout”, although some of the countries were taken in by the sweep of global recession.

Year 2010 has a different story. The Middle East is bouncing back. The aviation sector is looking up. The Middle East Business Aviation (MEBA) 2010 event to be held from December 7 to 9 is expected to be bigger than ever with about 70 business aircraft on static display. Excited about a Frost and Sullivan report that the business jets market is poised for steady growth, with over 200 units expected to be delivered to the region by 2015, the Managing Director of F&E Aerospace (organisers of MEBA 2010), Alison Weller said business aviation companies from across the globe are evincing “strong interest” in MEBA 2010.

“With a recent report predicting an annual growth rate for the Middle East business aviation market by over six per cent the next 10 years, the region will surely see an increase in business aviation service providers to cater to this demand,” said Weller. MEBA 2008 reportedly struck deals worth $1.5 billion (Rs. 6,700 crore).

Frost & Sullivan report is encouraging and it mentions that business aircraft movements would reach 1,60,000 by 2018, a compound annual growth rate of about 6.21 per cent. The Kingdom of Saudi Arabia, the report said, held about 37 per cent of the market potential followed by the UAE with nearly 24 per cent. The Middle East in all is expected to get deliveries of nearly 460 aircraft by 2018, of which Saudi Arabia alone will account for 154. Private jet operations are on the rise in the UAE, Saudi Arabia, Qatar, Kuwait and Bahrain. Enthused by such market potential, the governing body of the International Business Aviation Council (IBAC) will meet in Dubai for the first time outside the US or Europe.

There is a big spurt in demand for private jets from corporations, high net worth individuals (HNWI) and other agencies. The Middle East, especially the UAE, has been witnessing a growing demand for private charter flights as the responsibilities of top executives based in the region involve quick and frequent trips abroad. Ali Al Naqbi, the founding chairman of MEBA, said the number of registered Middle Eastern business jets has risen by 30-40 per cent over the last couple of years to around 500 aircraft, of which 114 are based in Saudi Arabia, with 78 registered in the United Arab Emirates (UAE). From 1975 to 1998, there was only one business jet operator, now there are over 25.