Soaring towards success – the seven architectural pillars of the Middle East aviation boom
In the wake of global transformations and economic diversification efforts, the Middle East is increasingly emerging as a vibrant hub for aviation innovation and expansion. Fuelled by targeted investments and forward-thinking initiatives, the region is exhibiting undeniable potential to become a global aviation powerhouse.
Here, we dissect the seven architectural pillars shaping the Middle East’s aviation boom.
1. Diversification of Economies
Middle Eastern nations are pivoting away from oil dependency by investing strategically in tourism development, with aviation as a linchpin of their transformation agenda. In Saudi Arabia, for instance – where the government and its sovereign wealth fund, the PIF, are increasingly supporting the development of related infrastructure and assets – the kingdom’s aviation strategy aims to reach 330 million people by 2030, as well as 4.5 million tonnes of cargo – a noticeable growth compared to 100 million PAX in 2019, and 88 million tonnes of cargo in 2022. Recognising the potential of aviation to drive economic diversification, countries in the region have been ramping up infrastructure and fostering air connectivity to attract more global travellers and boost trade.
2. Regional Fleet Expansion and Industry Dynamism
The Middle East’s aviation market has been experiencing a significant resurgence post-COVID, evident in the robust fleet expansion plans of national carriers. With projected fleet growth rates surpassing the global average at an annual rate of 4.2 per cent for the decade 2024-2034 – a significant measure compared to Africa at 2.3 per cent, Latin America at 1.9 per cent, North America at1.8 per cent, and Western Europe at 1 per cent – regional airlines are cementing their positions as major global players, backed by strong financial performance and ambitious growth strategies. Emirates continues to excel on a global scale, while Qatar Airways and Etihad Airways are majorly expanding their networks in a major way: the former has extended its network to over 170 destinations, while the latter projects an increase to 18 million passengers by 2025, surpassing pre-pandemic levels.
3. Investment in Infrastructure
Heavy investments in airport infrastructure underscore the region’s commitment to accommodate burgeoning passenger traffic and sustain growth. Mega-projects like Saudi Arabia’s King Salman International airport and the expansion of Dubai’s Al-Maktoum International airport highlight the scale of investment (at around US$30 billion each), with the Middle East set to handle over a billion passengers annually by 2040 – a significant increase from 2019’s 405 million. The region, with over 110 airports that will soon also include the world’s first LEED Gold-accredited passenger terminal building, at Kuwait International airport, is among the fastest-growing aviation markets in the world.
4. Growth of Low-Cost Carriers (LCCs)
The Middle East is witnessing a proliferation of low-cost carriers, capitalising on the region’s strategic location and growing demand for affordable air travel. Dubai and Abu Dhabi saw their LCCs’ market share jump to over 25 per cent from 2019 to 2022, with established players like flydubai joined by newcomers such as Wizz Air, signalling a paradigm shift in regional aviation dynamics and fostering increased connectivity within the Middle East and beyond.
5. Air Cargo Hub
Leveraging strategic locations and multimodal capabilities, Middle Eastern airports are emerging as vital hubs for air freight operations. Dubai International and Hamad International, among others, serve as pivotal logistics centres, facilitating seamless trade connections between markets across continents. Ambitions in the aviation sector are complemented by strategic investments in maritime capabilities and in logistic zones to solidify the Middle East’s position as a future logistics leader.
6. Aftermarket Services
The region is eyeing the lucrative MRO (Maintenance, Repair, and Overhaul) market, with ambitious projects aimed at enhancing regional capabilities. Initiatives like the MRO Village by Saudia Aerospace Engineering Industries exemplify the region’s aspiration to compete on a global scale, establishing a robust MRO footprint alongside aviation powerhouses like Dubai and Qatar. Emirates and Etihad are not lagging behind: Emirates has recently announced investing $950 million to build a new engineering facility at Dubai World Central (DWC), while Etihad Airways Engineering is set to expand its Abu Dhabi hangar’s capacity.
7. Focus on Sustainability
With growing environmental concerns, sustainability has taken centre stage in Middle Eastern aviation. From the design of green airport infrastructure to the adoption of renewable energy sources, the region is making strides towards greener aviation practices. Ambitious projects like King Salman International Airport’s pursuit of LEED Platinum certification underscore the commitment to environmentally conscious development.
The Middle East’s aviation sector is experiencing a profound transformation driven by strategic investments and technological innovation, with a steadfast commitment to sustainability. As the region continues to soar to new heights, these seven architectural pillars will serve as guiding beacons, shaping the trajectory of Middle Eastern aviation for years to come.
Words by Aurelie Fondecave, strategy and aviation expert at Deloitte Middle East
