What is driving the growth of business aviation in the Gulf?
One of the factors fueling the growth of business or more broadly private aviation, in the Gulf region is a phenomenon we will call the Great Billionaire Movement. According to a report by UBS Bank, this is high and ultra high net worth individuals (HNWIs and UHNWIs) emigrating from their slowing economies to emerging, high growth economies in Asia and the Middle East that offer access to ‘premium health care, education, safety and ease of doing business’ and escape from high levels of crime, conflict, failed policies and politics and deteriorating law and order as well as high taxation.
This demographic brings with it a predilection for luxury tourism and massive investments in their adopted economies, the knock on effect of which is again to boost private aviation across both leisure and business. In addition, what was thought to be a spike in charter travel during the pandemic era has proved more enduring as the influx of operators and more flexible options for charter travel have made private travel accessible to the merely wealthy as opposed to just the ultrawealthy.
The region is fast catching up with Europe – considered the most demanding sector for private travel – and experiencing an unprecedented boom. Exclusive, luxury, bespoke, unique, extravagant, exceptional are the bywords of private travel in the region whether business or chartered for personal travel. Small wonder international firms, such as Fly Society and Alabaster which have hitherto served mainly European clients are flocking to the Gulf especially Saudi Arabia and the UAE: Fly Society is setting up a regional hub in Dubai, while Spanish operator, Alabaster, is looking for strategic partners to expand operations in the dynamic Middle Eastern markets.
More about Business Aviation
As a vital hub for Business Aviation, the Middle East is experiencing a – potentially sustainable – expansion in demand. All three of the region’s largest markets, Turkey, UAE and Saudi Arabia have grown rapidly since the pandemic. According to data provided by WingX a market intelligence provider for the aviation industry, business departures year on year to September 2024, grew 106% from Turkey. Over the last five years, they’ve risen 240% in the UAE, 144% in Saudi Arabia while Cyprus and Qatar realized 114% and 240% rise in business departures respectively.
What is driving this dramatic growth? First and foremost the strategic push towards economic diversification being pursued by the Gulf nations followed closely by the focus on travel and tourism. Further economic liberalization is delivering unprecedented economic growth by increasing wealth and attracting wealthy individuals and investors as well as entrepreneurs and businesses hoping to ride the wave.
As mentioned above, the HNWI, Ultra HNWI and VIP luxury market is an important driver of demand in the region with high expectations of personalized travel that reflects this demographics preferences across business and leisure from customized interiors and premium onboard experiences to high quality amenities and on demand service. Meanwhile, a pattern of surging private and charter travel during winter and summer holidays is driven by affluent families increasingly choosing to go private when travelling between the Middle East and Europe not just for the luxury but also the privacy, convenience and flexibility.
The supply side of the market is evolving equally rapidly. The changing demographics of Dubai for instance, which has seen a sudden and one the largest inflows of HNW and UHNW individuals in the region in recent years, has been a huge market opportunity for operators with both full charter operators (which own their own aircraft) to aviation services and consulting firms which offer charter flights as a service but do not own or fly their own jets. This is adding depth and breadth to the private aviation market in the region with operators investing in technology, platforms, aircraft and amenities to offer an abundance of highly tailored services to their clients.
MEBAA 2024
Against this encouraging backdrop, a business aviation event held in the industry’s emerging heartland was bound to be a success and MEBAA 2024 did not disappoint. A 3-day event held at the Dubai World Centre, it was a stupendous success. An important event for the region’s business aviation industry, it showcased the rapid growth and potential of the business aviation industry and provided the perfect venue for the announcement of numerous new ventures and partnerships and debuts of new aircraft, such as the Airbus ACJ220.
With representation from the industry’s exclusive who’s who such as Airbus Corporate Jets, Boeing Business Jets, Bombardier, Dassault Aviation, Embraer, Gulfstream, Textron, the show attracted 145 local, regional and international exhibitors from 100 countries. It was an invaluable opportunity to discover the latest aircraft, technology and solutions transforming the industry and the way we travel.
KAMS Global were proud to attend this historic event and announced multiple important partnerships with industry leaders SKYNA and Jetbase. KAMS Global and SKYNA will collaborate on aircraft acquisitions and leverage their combined expertise in this space to deliver tailored solutions and play a leading role in the development of the region’s nascent aviation leasing market.
Our partnership with JetBase underscores our mutual commitment to advancing operational excellence, developing innovative solutions for safer, sustainable aviation and a smoother, more efficient experience for our customers.
If you are interested in entering this dynamic region with plans to establish or expand your own business aviation or charter service, please get in touch to find out how we can help you.
