March 2014

The GCC Aviation Industry Report provides a perspective of the GCC aviation sector by presenting the current industry status, key market dynamics, and scope for future growth. It examines the key sub-segments of the aviation market by identifying fundamental growth drivers, significant challenges, and recent trends. Based on reliable third-party estimates, the report also captures the outlook for the GCC’s aviation market. The report also profiles each of the six GCC nations as well as those of the region’s major aviation players.

GCC is emerging as a key aviation hub, which is being capitalised by regional airlines and promoting the overall growth of the aviation sector in the GCC region. The growth is also being fueled by strategic development across sectors like infrastructure, tourism, healthcare, education and sports facilities.

The GCC Aviation Industry Outlook

Alpen Capital in its report predicts that the growth in air passenger and air cargo traffic in the Middle East, between 2012 and 2032, is likely to outperform that across all other regions. Air passenger traffic in the Middle East, in terms of Revenue Passenger Kilometers (RPK), is expected to expand at a compounded annual growth rate (CAGR) of 6.7%, while air cargo traffic, in terms of Freight Tonne Kilometers (FTK), is expected to grow at a 7.2% CAGR.

Air passenger traffic on outbound routes from the Middle East is expected to outpace that on traditional routes such as Europe – Europe, Europe - North America, and North America – North America. Within the Middle East, air passenger traffic in the United Arab Emirates (UAE), Saudi Arabia, and Oman is expected to grow at a 6.6%, 6.9%, and 7.5% CAGR, respectively, between 2012 and 2017.

The Middle East aviation market is expected to receive the delivery of 2,610 aircraft between 2012 and 2032, valued at US$ 550 billion. As a result, the total fleet size in the region is expected to increase at a 4.7% CAGR during the period to reach 2850 aircraft in 2032.The business jet fleet size in the Middle East is projected to grow to 1420 from 400 between 2012 and 2032.The Middle East Maintenance, Repair, and Overhaul (MRO) market is expected to grow at an 8.6% CAGR between 2013 and 2022 to be valued at US$ 8.0 billion.

For more details please click here to access the complete version of the GCC Aviation Industry Report.