Potential of Private Aviation in the Middle East and Africa
- The Middle East & Africa jet charter services market is projected to reach USD 725.37 million by 2026, registering a CAGR of 18.27%.
- Qatar is estimated to be the fastest-growing market for jet charter growing at a CAGR of 19.24% reaching a market value of USD 116.18 million by the virtue of its all-large jet fleet of charter aircraft.
- International charter traffic from Europe, Africa, and Asia will be a key factor in deciding the market potential and recovery for international charter traffic and will have a significant impact on revenues.
The Rise of Private Aviation in the Middle East
- In the current scenario, many customers, especially the ones flying on routes between Europe and the Middle East, and the United States, and the Middle East, are looking at charters as an essential way to travel because of the safety it offers.
- According to charter provider Jetex based in Dubai, as much as 70% of the demand for private jets in Q2 2021 came from first-time private jet travelers who used to fly first class on commercial airlines. Due to the burgeoning demand, charter operators have increased the prices of charter services. On average, charter prices increased by about 40% in the Middle East.
- The regional airlines including Qatar Airways are promoting their private jet charter units as scheduled air travel remains under pressure because of pandemic-related flying restrictions.
- The business jet market size is anticipated to register a CAGR of about 2.5% during the forecast period (2022-2027).
- The prevalence of charter flight carriers and business jet operators has been steadily increasing in the region. Correspondingly, governments are developing the private aviation infrastructure in the region by allocating certain resources to the sector in their civilian airport construction plans. The growth of the charter jet services sector is being supported by some aviation infrastructure development plans that are underway in the region.
- Over the past few years, there has been a significant increase in high-net-worth individuals and ultra-high-net-worth individuals globally. This is generating demand for private travel, subsequently driving the procurement of private jets with enhanced cabin interiors.
Read our associated report on Business Jet MRO Market
How UHNWI and HNWI are impacting the Charter Industry?
- The preference for luxury travel has been growing rapidly in the Middle East mainly due to the presence of many ultra-high-net-worth Individuals (UHNWI) (individuals with assets of USD 30 million or more) and high net-worth individuals (HNWI) (individuals with assets of USD 1 million or more) in this region.
- The presence of a growing UHNWI and HNWI clientele in the region has a positive effect on the demand-side dynamics of the market. The increase in spending levels of such people is enabling them to opt for charter services for satiating their exquisite tourism needs.
- In the future, as the region continues its various economic diversification programs to shift away from oil-based economies, there may be significant growth in the number of HNWIs residing in the region, with Saudi Arabia and the United Arabs Emirates is at the forefront of the growth.