Ali Al Naqbi, in an interview with Al Bayan confirmed the emirates prominent position in the sector globally

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Source: Al Bayan

Ali Al Naqbi, Founder and CEO of the Middle East and North Africa Business Aviation Association (MEBAA), confirmed that the UAE leads the private aviation and business aviation sector in the region, accounting for 41% of the total market size and 63% of the fleet of business jets and private aircraft registered in the region.

Al Naqbi said in an interview with Al Bayan: There is an 8% increase in demand for private and business aviation in Dubai during the first half of this year, compared to the corresponding period last year, supported by the activity of economic, commercial and tourism movement, the influx of investments, businessmen and celebrities to Dubai, in addition to government support for the sector, which made the emirate the leader of the cities of the region, and become one of the most important cities in the world in private aviation movement.

1. How did the private and business aviation sectors perform during the first half of the current year, and what are the projections for the remainder of the year?
The first half of the year has seen remarkable resilience and growth in the private and business aviation sectors, driven by a number of factors including geopolitical shifts, an increase in high-net-worth individuals (HNWIs), and a sustained demand for flexible, high-value travel solutions. In the UAE, business jet movements in 2023 surged by 8% year-on-year at the Mohammed bin Rashid Aerospace Hub (MBRAH), and we expect continued growth throughout 2024, reflecting Dubai's leading position in the global business aviation landscape.
Looking ahead to the second half of the year, we project continued momentum for both personal and corporate business aviation travel, particularly during the summer peak travel months of July and August, and with the growing appeal of private aviation as a strategic business tool rather than just a luxury.

2. How does the performance of the UAE's private and business aviation sector compare to the regional and global counterparts, and what percentage of the total market size does the UAE represent?
The global business jet market continues to grow and is predicted to increase from US$ 42.14 billion in 2022 to US$ 62.66 billion in 2030 . The Middle East and North Africa region will be a key contributor to this growth – and particularly the UAE which makes up 41% of the total regional market. With the strong growth driven by economic diversification, increased investment in infrastructure and the prominence of high-net-worth individuals (HNWIs), global operators are also recognising the importance of the UAE for business aviation, for example UK-headquartered Gama Aviation recently announced major progress in the development of its new Business Aviation Centre at Sharjah International Airport.

3. What is the magnitude of the private and business jet fleet registered in the UAE?
The UAE and the broader Middle East region are significant players in the global business aviation market, with a rapidly expanding fleet of business and private aircraft. As of this year, the UAE has approximately 174  registered business jets, while the rest of  Middle East and North Africa region has 276 business aircraft registered, reflecting the region's strategic importance and the growing demand for private aviation services.

4. What criteria determine business flight prices? What is the average rental price per hour?
Business flight pricing is influenced by several key criteria, including the type and size of the aircraft, flight duration, distance, operational costs (such as fuel, crew, and maintenance), and the level of service and amenities provided. Additionally, factors like the time of booking, seasonal demand fluctuations, and route popularity can also have an impact. In the Middle East and North Africa, where demand for business traveling and tailored experiences is high, these factors are particularly salient. The average rental price per hour can vary significantly, ranging from approximately 3,000 USD to 25,000 USD depending on the size of the aircraft

5. What are the most pressing contemporary challenges for the private and business aviation sectors?
The private and business aviation sectors face several challenges, however these also bring opportunities. With sustainability a key concern due to increasing pressure to reduce carbon emissions and align with global environmental goals, the industry is leading efforts to reduce carbon emissions through investments in Sustainable Aviation Fuel (SAF) and green technologies.
Technological advancements are also unlocking new potential for operational efficiency and customer experience, yet while entities must invest in new technologies like artificial intelligence and eVTOLs to stay ahead of the market, modernising infrastructure and ensuring regulatory compliance and safety is crucial to keep pace with the rising demand. Additionally, there is a challenge that the industry can be see as extravagant, however it’s essential that its role in driving economic efficiency and connectivity is not overlooked.
Addressing these challenges requires a strategic approach, industry collaboration, and a commitment to innovation and sustainability.

6. Is the gray market still an issue for investors in the sector?
The grey market remains a challenge for the business aviation sector, posing risks to safety, security, and fair competition. However, regulatory authorities in the UAE and the wider Middle East and North Africa region have been proactive in addressing these issues. The collaboration between MEBAA and regulatory bodies aims to enhance industry standards, ensure compliance, and mitigate the impact of unauthorised operators on the market.

7. How does the large influx of riches and wealthy individuals to Dubai effect the rising demand for private and business aviation?
With Dubai named as one of the world’s wealthiest cities, where the number of millionaires has surged by 78% between 2013 and 2023 , the influx of wealth is significantly impacting the demand for private and business aviation. While there is a perception that HNWIs drive demand, we also now see more than 80% utilisation of business aviation for business purposes, taking advantage of the rapid, flexible and direct travel options.
Many corporates are also now utilising business travel in a way that benefits their business, with it able to support revenue growth, innovation and employee retention. Business  aircraft can reach more airports than commercial airlines, helping to fly closer to final destinations and save time on ground transport. They can also reach numerous destinations in one day, without relying on multiple flight schedules, and executives can utilise them for meetings and private deals with better connectivity.

8. How much does the aviation industry contribute to Dubai's GDP? What is the sector's annual sales volume in Dubai and UAE?
The aviation industry is a vital part of Dubai's economy, contributing significantly to the emirate’s GDP. With substantial annual sales, driven by a combination of commercial and business activities, along with its strategic location as a global transit hub and its world-class infrastructure, Dubai continues to reaffirm its position as a global aviation hub. These elements further enhance the sector's contribution to Dubai's GDP, solidifying its role as a vital economic engine for the emirate and the UAE as a whole.

9. How does arranging significant events impact the volume of demand in the private aviation sector?
Significant industry events play a crucial role in driving the business aviation sector forward as they provide a pivotal platform for fostering crucial connections and driving innovation. For the MEBAA Show, we are committed to providing unparalleled opportunities to network, gain deep insights into key trends and explore new products and services. Each edition we look at how we can elevate the level of unique opportunities to explore new business deals and forge paths that align with our shared vision of advancing the future of business aviation. Moreover, such events highlight the region’s capabilities and commitment to excellence, further boosting its attractiveness as a premier aviation hub.

10. How are you preparing to organize MEBAA Show at Al Maktoum Airport? What is the number of participants so far?
Following a successful edition in 2022, which saw a remarkable 56% increase in visitors from its previous edition, we anticipate this year’s edition to be even bigger, and a number of international companies have already signed up and confirmed their attendance, including Boeing, Dassault Aviation, Bombardier, Embraer, Empire Aviation, DC Aviation, Vista and Saudia Private.
Preparations for the upcoming edition are well underway, with a focus on delivering an exceptional experience for all attendees. This year's edition will feature a refreshed agenda packed with new concepts. The returning BizAv Talks will address key themes, from optimising sustainable operations and exploring new initiatives, to leveraging technology trends, enhancing customer experience and maximising efficiency, while enhanced networking opportunities will ensure it’s a platform to foster crucial connections and drive innovation.
Recognising advanced Aerial mobility’s (AAM) revolutionary potential within the industry, the MEBAA Show will feature a brand new AAM pavilion, showcasing the latest technologies in the eVTOL.industry. This emerging sector also presents a huge opportunity for startups in the business aviation industry, and the newly introduced VISTA at the MEBAA Show programme will cater to this. This dedicated platform will welcome global startups to showcase their new technologies and solutions – from crypto and sustainability to eVTOLS – where they will have the opportunity to pitch live and network with industry leaders.

11. How many business and private flights are there in the UAE and in Dubai?
In recent years, the UAE has witnessed a surge in business and private jet movements, with approximately 18,750 business and 6,250 private flights each year driven by the country's strategic location, influx of HNWIs and its appeal as a global business hub. In Dubai, the city’s two primary airports, Dubai International (DXB) and Al Maktoum International (DWC), handle a significant volume of these flights, having witnesses 18,000 business and private flights so far in 2024.
Across the other emirates, the total number of business and private flights has also seen a steady increase, with major hubs like Abu Dhabi and Sharjah also contributing to this growth. The UAE's comprehensive aviation infrastructure supports a high volume of such flights, reflecting the nation's leadership in the sector.