A new study says the business jet market will continue to grow in the Middle East, led by Saudi Arabia and the UAE, and be a key driver for the airline industry in the region over the next decade in the wake of the economic downturn. 

In the Middle East, the business jet market is still in its infancy, but it is growing rapidly and showing no signs of letting up, according to experts in the region.Total revenues earned by the corporate jet market in the Middle East reached $493.9m in 2008, according to the Middle East Business Jets Market Assessment from research and consulting firm Frost & Sullivan.

In terms of business jet travel, the Gulf is a virgin market compared to the west,” said Ammar Balkar, President and CEO of the Middle East Business Aviation Association. In the late 1990s there were only one or two private jet operators in the entire region, but today there are 22, and that number is likely to double by 2010, he predicted.

Prices for chartering a business jet in the region have remained relatively unchanged over the past few years, but there are now smaller planes in the market to choose from, whereas previously there were only high-end aircraft. Therefore customers now have more flexibility when they are negotiating for a charter, Balkar said.
The best option to choose will vary for each customer. “If you fly over 400 hours per year, you are better off buying your own plane,” Balkar said.

“If you fly less than that, there are now more options to choose from, but each customer will need to decide what is best based on their individual needs and budget.”

Balkar cited a number of reasons for the growing popularity of business jets among corporations in the Middle East, including a growing regional economy, bigger corporate budgets and the availability of more types of cheaper aircraft. These smaller jets allow a greater variety of pricing options for charter and fractional ownership.

Another reason for the growing demand is the development of airports in the Middle East, Balkar said. More than $40 billion in projects to develop facilities in the region are underway, including the expansion of the Dubai International Airport and the new Doha International Airport.

Another factor is security. Balkar said that business jet demand since 11 Sept. jumped 40 percent–largely due to safety concerns–and that some companies now require their top executives to use private aircraft rather than commercial service.

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