A myriad of opportunities are coming up in the Middle East aerospace industry, which is estimated to be worth more than $45 billion, said experts at a recent logistics conference in Dubai, UAE.
Organised by Dubai World Central (DWC) and event management company Arabian Reach, the two-day Aerospace Supply Chain Summit concluded on December 11 at the Dubai World Central (DWC).
Keynote speaker at Khalifa AlDaboos, managing director of the Dubai Aerospace Enterprise (DAE), says current trends point to a tectonic shift in the market, where emerging economies such as the Middle East are playing a major role in transforming the global aerospace landscape.
“GCC and Middle East airports are leveraging their strategic geographic location to become global supply chain hubs for emerging markets. And recent passenger traffic performance in the region reflects this uptrend,” said AlDaboos.
According to Airports Council International (ACI), worldwide airport passenger numbers increased by 4.4 per cent to 5.7 billion in 2012, registering increases in all six regions across the globe. However, Middle East outperformed global average, recording an increase of 13 per cent.
“The Middle East is also benefiting from the growing middle class population in emerging economies, who have more disposable income to travel and explore destinations outside their home markets,” added AlDaboos.
“The Middle East is one of the world’s fastest growing aviation markets, mainly due to the robust growth in the commercial aerospace sector. Regional carriers have shown impressive performance even amidst the regional and global economic challenges,” said Tahnoon Saif, DWC’s vice president for Aviation.
Saif added that passenger traffic in the region has been buoyant, with the Middle East maintaining a clear lead over other markets worldwide with a 10.3 per cent increase in October, quoting the International Air Transport Association (Iata).
This widening shift in the aerospace market has been documented by various industry observers, highlighting the prediction that North America and Europe’s share of air traffic revenue passenger kilometres (RPK) will drop by 32 per cent between 1991 and 2031, while shares of the Middle East, China and Asia Pacific are expected to rapidly grow, according to Iata.
Raj Menon, general manager of Arabian Reach, said this interesting shift in figures offers a promising value proposition for industry players in the aerospace supply chain, who are keen to explore the Middle East market.
“Air travel and logistics are directly tied to their respective markets’ economic performance and Middle East airports, especially those in the GCC, have weathered several storms in the past, which have made them even stronger and valuable as gateways,” he said.
The second edition of the Aerospace Supply Chain Summit will be held October 7 and 8, 2015 in Dubai, Menon added. – TradeArabia News Service
