Market Trends of GCC Business Jet Industry
The Segment for Large Jets Dominates the Market During the Forecast Period
The business jet fleet in the GCC countries is dominated by long-range and ultra-long-range models, particularly in the large jet segment. This preference is primarily attributed to the region's affluent clientele, who favor the sophistication and capabilities of these large jets. Additionally, the geographical expanse of the GCC, nestled between continents, necessitates using long-range jets for seamless intercontinental travel, connecting to destinations in North America, South America, Europe, and Asia-Pacific.
Over the past three years, sales of long-range business jet models, including those from the Bombardier Global family, Gulfstream, and Boeing Business Jets, have surged in the GCC. Given the substantial fleet presence, MRO providers have reaped significant revenues from this segment. Furthermore, air charter services in the region have experienced a surge in demand for large jets over recent years. Leading business jet manufacturers, like Bombardier Inc., are capitalizing on this trend, bolstering their presence in the Middle East with offerings like the Global 7500.
Saudi Arabia is Expected to Witness Significant Growth During the Forecast Period
By December 2023, Saudi Arabia boasted the largest fleet of operational business jets in the GCC, a feat propelled by the increased number of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) in the country. Notably, between 2017 and 2023, the number of UHNWIs in Saudi Arabia doubled.
As of December 2023, Saudi Arabia's business jets represented 11% of the total fleet in the Middle East and Africa. Gulfstream Aerospace Corporation, a subsidiary of General Dynamics, led the pack in terms of jet deliveries, with a 24% share, closely followed by Boeing at 21%, Airbus at 18%, and Hawker at 10%. Impressively, almost all business jets in Saudi Arabia were under full ownership.
Popular models included Gulfstream Aerospace Corporation's G650ER, Bombardier's Global 6000 and 7500, and Boeing's 737-800. With Saudi Arabia spearheading business jet activities in the GCC, the ongoing expansions at Riyadh and Jeddah airports are set to create more room for private jets, benefiting local maintenance, repair, and overhaul (MRO) and fixed base operators (FBOs). Consequently, the surge in aviation infrastructure investments is poised to enhance market prospects in the coming years.
