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UAE Freezones Biz News Updates
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UAE business jet market to exceed Dh3.67b
By 2020 – the regional fleet size of registered business jets is expected to
cross 1,375
 An Eclipse Jet aircraft on show at the recent Middle East Business Aviation
expo in Dubai. Business jets will get a new home at the Dubai World Central,
the purpose-built aerotropolis.
When Dhananjay Datar, a Dubai-based spice trader, decided to celebrate the
25th anniversary of his business, he decided to do in style. He took his
team members and family up in the sky — in a Boeing Business Jet — to
celebrate it 33,000 feet above the sea level. His personal wealth, generated
by selling spice, is estimated at $650 million (Dh2.4 billion)!
But he is not the only one. The Gulf is home of a large number of wealthy
individuals who use business jets to celebrate moments and to fly out at
their convenience with personalised services at their own pace.
Holding business meetings at 31,000 feet above sea level or celebrating
birthdays at 900 nautical mile speed was not even in the wildest dream of
most citizens and residents of the Gulf in the early 1970s when the
erstwhile Trucial States became independent, let alone think of developing
their own aircraft.
However, 40 years down the line, these are realities. The wealthy Gulf
businessmen are now taking their fast, flamboyant and luxurious lifestyle to
the skies — flying in the latest business jets. Those who can’t afford to
own them, hire at a rate of $20,000-25,000 per hour. As the regional
economies recover from the financial crisis of 2008-09, more and more
businessmen are going to avail business jets in the coming years.
By 2020, Mubadala Aviation, is expected to manufacture its own business jet
that is expected to serve the market after commercial launch — a move that
was nearly ‘unthinkable’ in this part of the world — to benefit from the
growth.
Middle East’s business aviation market is expected to reach Dh3.67 billion
($1 billion) by 2018, and by 2020 — the regional fleet size of registered
business jets is expected to cross 1,375, according to the Middle East
Business Aviation Association (MEBAA).
However, this is going to be elevated to a new level when business jets gets
a new home in Jebel Ali — at the Dubai World Central — the 140-square
kilometre purpose-built aerotropolis.
“The business aviation sector is growing in the region — leading industry
players can now utilise our world-class facilities for business aviation to
grow their business,” Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai
Civil Aviation Authority and Chairman, Dubai Aviation City Corporation, said
in a statement.
The government’s vision to establish Dubai as a world-class aviation hub is
fast gaining traction. The government is providing strategic support to
business aviation companies to enhance their competitiveness, while the
dedicated business jet facility at Al Maktoum International Airport is
expected to serve as a catalyst for long-term growth.
“We are working on important initiatives to develop a global hub for
business aviation, supported by soft and hard infrastructure,” Shaikh Ahmad
said.
With nearly 10,000 business jets expected for delivery through 2022, and 30
per cent of buyers planning to purchase additional aircraft in the next five
years, the need for strategically located Fixed Base Operators (FBO),
Maintenance, Repair & Operations (MRO) will also greatly increase.
The world’s largest economies either directly or indirectly benefit from the
rapid growth of business aviation as the industry helps unlock new
possibilities that were otherwise unavailable with the limited offerings of
general aviation services. A study conducted by NBAA (National Business
Aviation Association) in 2012 showed that the business aviation contribution
to the US economy reached $150 billion (Dh550 billion).
“Business aviation in the Middle East is going through unprecedented
change,” Ali Ahmad al Naqbi, Chairman of MEBAA, said at a conference
earlier.
Dubai World Central last year announced it would commence business
operations from a dedicated VIP terminal at Al Maktoum International. “But
the demand for business aviation must be matched by greater airport access
and safety regulations that are specific to our operations,” he said.
That’s perhaps why Jetex, an international flight support provider, is
moving operational headquarters to Dubai World Central’s Aviation District.
Adel Mardini, President & CEO of Jetex Flight Support, said, “We recognise
the importance of the Middle East in our strategic growth plans. Moreover,
we expect our new facility in Dubai World Central to be a crucial element in
the company’s expansion plans and allow us to support the sustained growth
of the market in the coming years.”
XJet is another top-flight company that is geared to establish its business
model through its hub in the Middle East. It is planning to build a facility
at DWC.
XJet Founder and President Josh Stewart said, “The market holds great
opportunities for our company with the increasing number of private jet
owners in the Middle East, as several more owners from around the world are
interested in the region. We will provide special training to our team to
ensure they are able to cater to various cultural sensitivities and work in
our new facility.”
June 4, 2013
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Courtesy Al Nisr Publishing LLC
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