Business aviation has been a growing market after COVID-19 in many parts of the world. While the fluctuations have impacted even the private aviation market, it has more or less seen better days than commercial aviation. The global business aviation sector was valued at $42.14 billion in 2022 and is poised for significant growth. Forecasts indicate an increase from $43.97 billion in 2023 to an impressive $62.66 billion by 2030. This surge is driven by a notable rise in high-net-worth tourists, escalating the demand for private aviation and propelling global business aircraft sales.

The Middle East has been seeing significant growth, further driven by tourism and global events being organised. In the Middle East Aviation Market, valued at $60 billion in 2023, RationalStat analysis predicts substantial growth at a CAGR of 3.9 per cent from 2023 to 2030. Despite a 6 per cent year-over-year decline, the sector is 47 per cent ahead of 2019, with Al Maktoum International Airport in Dubai standing out, surpassing its last year’s activity by 4 per cent. The Middle East demonstrates resilience, with certain hubs like Dubai maintaining robust activity. Business jet growth in the Middle East has been strong in recent years and is expected to continue. According to Aviation Week Network’s 2024 Business Aviation Fleet & MRO forecast, the private jet fleet in the region is projected to grow by 141 (reaching 480 in-service aircraft) over the 10 years from 2024-2032, with a sales value of $9.1 billion. The region primarily sees a dominance of long and ultra-long-range jets, aligning with travel profiles to Europe, Asia, or North America.

“MEBAA has been dedicated to serving as a strong advocate for the industry, tirelessly working behind the scenes to address challenges and champion the interests of our members. Throughout our journey, MEBAA has played a pivotal role in shaping policies, influencing regulations, and promoting best practices to ensure a thriving and sustainable business aviation ecosystem.”
—Ali Ahmed Alnaqbi, MEBAA Founding & Executive Chairman and Chair of the Governing Board of IBAC

Constructive growth in the Middle East during the forecast period is anticipated due to substantial demand in economic powerhouses such as the UAE and Saudi Arabia. This surge is further fueled by the need for private and environmentally friendly aircraft due to escalating aviation emission regulations. The Middle East stands as one of the fastest-growing aviation markets globally, with an annual regional fleet expansion of 5.1 per cent over the next decade. Notably, the Middle East outpaced the rest of the world in reviving international air travel, surpassing pre-pandemic levels in the first quarter of 2023. Demand for private jet charter flights in the Middle East is expected to continue growing and reports project the Middle East and Africa jet charter market to expand from $511.52 million in 2023 to $851.90 million by 2028. With these predictions and various developments, alongside new orders and announcements expected from the Dubai Airshow 2023, the Middle East is certainly solidifying its position in the business aviation market.

DUBAI ESTABLISHING AS THE HOTSPOT AND THE HUB

In Dubai, strong business conditions are evident with the fastest acceleration in new business intakes in four years, driven by the city’s 3.2 per cent economic growth in H1 2023. The ambitious D33 economic growth strategy targets a surge in foreign direct investment (FDI) to Dhs650 billion by 2033. Dubai continues to dominate business aviation in the Middle East, driven by robust revenues, highlighted at the Dubai Airshow with new facilities like the ExecuJet FBO. The Mohammed Bin Rashid Aerospace Hub (MBRAH) recorded over 15,400 business jet movements in 2022, with sustained momentum at 7,300 movements in H1 2023.

Government initiatives and global events like the FIFA World Cup 2022 in Qatar have boosted private jet movements to Dubai, solidifying its position as the region’s aviation hub. Growth opportunities in Saudi Arabia position the Gulf region as a focal point for private aviation diversification. The region also eyes participation in eVTOL air taxi services, aiming for a comprehensive aviation ecosystem. Investments in MBRAH, totaling $820 million, show a commitment to further growth, with expectations to reach $1.6 billion by 2026.

SAUDI ARABIA EMERGING AS A GROWTH CENTER

Saudi Arabia is re-emerging as a growth center for business aviation, with companies like Jet Aviation looking beyond the dynamic Dubai market. Jet Aviation is consolidating its UAE operations while exploring significant growth opportunities in Saudi Arabia, aligning with the country’s Vision 2030 strategy. Positive sentiments about Saudi Arabia’s business aviation sector indicate upward growth, supported by expansions in line maintenance capabilities. EAG’s aircraft management division is expanding its fleet, showing sustained interest in new private aircraft in the Middle East. Jetex, aiming for 50 FBOs by 2025 or 2026, prioritises acquisitions for network growth. The return of demand for new private aircraft, especially in the Middle East, reflects a robust market, with Middle Eastern buyers preferring new aircraft. Global Jet Capital expects continued growth in new deliveries and strong activity in both new and pre-owned markets.

UAE MOVING UPWARDS

Ali Ahmed Alnaqbi, Founder and Executive Chairman of the Middle East and North Africa Business Aviation Association (MEBAA), recently noted that the United Arab Emirates (UAE), constituting 35 per cent to 40 per cent of business aviation movements in the Middle East and North Africa, is the largest market in the region. The number of private or business aircraft in the UAE has surpassed 500, indicating a substantial increase. Alnaqbi highlighted that the cooperation agreement between MEBAA and the General Civil Aviation Authority (GCAA) aims to boost the business and private aviation sector, with the UAE aspiring to be the primary base and headquarters for business aviation in the region. The agreement involves signing contracts and establishing specialist committees, with the goal of solidifying the UAE’s position as the main hub for business and private aviation services in the region.

MEBAA STRENGTHENING BUSINESS AVIATION

According to the MEBAA, a substantial 70 per cent of private jet flights in the Middle East region serve business purposes. Leading countries in the region with extensive business aviation fleets include Saudi Arabia, Turkey, the UAE, Israel, and Egypt. In 2022, the Middle East’s private aviation sector experienced robust growth, witnessing a yearly increase of 25 to 27 per cent in aircraft movements. Notably, individuals who shifted from first and business-class travel to private aviation during the COVID-19 pandemic have sustained this trend, opting for chartered flights over scheduled airlines.

MEBAA, a key driver behind the growth of business aviation in the Middle East, plays a crucial role in unifying the industry, fostering innovation, and ensuring a conducive environment for thriving businesses. Founded by Ali Alnaqbi, who is also the Chair of the Governing Board of the International Business Aviation Council (IBAC), MEBAA is instrumental in championing common standards, safety, and sustainability for streamlined operations.

In our interconnected world, business aviation is a vital catalyst for global economic growth and connectivity, facilitating rapid market access, encouraging collaboration, enabling swift humanitarian response, and building bridges among nations, Alnaqbi shared recently. He further emphasised the swift recovery of business aviation under MEBAA’s influence. The upcoming MEBAA edition, scheduled for December 10-12, 2024, in Dubai, follows the highly successful 9th edition, which saw over 10,000 attendees and exhibitors from 95 countries. MEBAA Show 2022, a cornerstone event in the Middle East business aviation calendar, witnessed a 90 per cent increase in new visitors, providing an ideal platform for global industry networking and concluded with key deals and announcements poised to drive the business aviation sector forward.

Alnaqbi also expressed enthusiasm about the show’s success and the industry’s transformative growth. He emphasised the industry’s transition with innovation, technological advancements, and digital transformations, indicating sustained growth well into the future.