While business aviation’s so-called emerging international markets may have disappointed the industry over the past year or so, the Middle East and North Africa region continues to be a glass half full, according to representatives of the bizav community who have gathered in Dubai for this week’s MEBAA show.
“The Middle East and North African market is developing well despite everything that is going on there in terms of [political] uprisings and destabilization,” said Ali Alnaqbi, founding chairman of the Middle East and North Africa Business Aviation Association (MEBAA), speaking to AIN a few weeks before the show.
For now, the bulk of business aviation activity is concentrated in Saudi Arabia and the United Arab Emirates, which, respectively, currently account for around 35 percent and 26 percent of the Middle East business aircraft fleet, according to MEBAA. But Alnaqbi was quick to point out that growth is happening in other countries too, notably Morocco and Jordan.
Alnaqbi indicated that MEBAA still has plenty of work to do in opening up opportunity for further business aviation growth across the vast region. For instance, the association is trying to persuade authorities in Qatar to end a policy of only allowing a single AOC holder in the country—namely Qatar Executive, which is part of state-backed airline Qatar Airways. “This is very bad, and we need to convince them [that the lack of competition] is the wrong way,” Alnaqbi stated. The association abandoned plans to hold a conference in the Qatar capital Doha in September.
He pointed out that the market is facing headwinds. “It’s difficult. The region is going through a lot of uncertainty. It’s not a matter of money or oil. It’s a matter of everything: security, stability, the uprisings going on. How many wars do we have in the region? Yes, is it difficult, but I think it’s manageable.”
He said the inability to fly over countries like Syria and Yemen, capacity issues, and security at regional airports were creating difficulties, but that MEBAA had seen important successes, underlining the idea that adverse market conditions need not be a barrier to progress.
“I think, overall, MEBAA has scored some major achievements, despite everything that’s happening. As an association, we managed to reduce the gray market, we raised the profile of business aviation in several Arab countries and its role as part of their economies,” he said.
“Ministries of the economy in several countries speak highly of business aviation as a tool for prosperity. We have also managed to improve access and change rules and regulations in Morocco, Saudi Arabia, Jordan and Bahrain. We have a very strong regional presence.”
Alnaqbi, who took on a full-time MEBAA role last year, after retiring from his position at the Presidential Flight, said the show was the sixth such event, and its 10th anniversary. “It is very important to emphasize what has been achieved by the association in the last 10 years. The show is one achievement. Conferences, increasing market size and the number of members are all milestones MEBAA has achieved in the last 10 years. We want to highlight all this at the show.”
MEBAA forecasts the value of Middle East business aviation sector at $1 billion in 2020, aircraft movements in the MENA region at 175,000, and business aircraft registered in the region at 1,200.
“We are always going to have a problem with statistics in MENA. I am trying to overcome that problem. The reason: confidentiality and privacy. We have that dilemma with everybody. We are doing our best. Believe me, if I had statistics on the gray market, I would share them. The GCAA have no statistics here. No one knows. It’s difficult. We are getting there,” he said.
MEBAA intends to launch a cluster of business aviation offices at DWC headquarters. “Discussions are still ongoing. We are hoping to move all the business aviation players into the same area. A building or maybe even part of a building may be more than enough for our industry. We don’t yet have an opening date.”
Asked to comment on the general state of business aviation in region, Alnaqbi said: “The future is bright. Despite what’s going on, all the unrest, if any region had been facing what the Middle East has faced in the last six years, that region would be in a hole. We sustained our growth. We moved aircraft from countries with issues to others that are stable. An aircraft is a moveable asset. In the market, there are many optimistic and pessimistic people. I believe the future is bright.
Recent growth has not been double-digit, as MEBAA might have earlier expected, he said. “Last year it was about 8-9 percent. It’s a good number. I am very optimistic when it comes to business aviation. We have achieved many things. Members and non-members have benefitted from the existence of MEBAA.”
He believes MEBAA has cleared the way for the market to grow. “We have talked to governments, the authorities, from Morocco to Oman. We went to Lebanon, a difficult place to go. Tunisia is still difficult. Egypt is on our radar: we are always talking to them.”
Alnaqbi said it was important that Saudi Arabia’s Minister of Transport and GACA head, has a business jet background, after running the NAS Holding Group, and its bizjet subsidiary, NasJet. “Al Hamdan is very supportive. Before he became head of GACA, he was part of our industry,” he said.
“Saudi Arabia, the UAE and Morocco have changed their business aviation rules. They are more accommodating to us. In Saudi, they have canceled Part 91 rules, which are no longer issued there. All the aircraft have to be ‘commercial.’ This is a direct result of MEBAA’s campaign: as a result, the gray market in the kingdom has been significantly reduced. Passengers are now aware of the gray market.
“We decided to replicate steps taken by the European associations, by [addressing] the dangers of the gray market among the passenger community, not only among operators, brokers, airports and authorities, but also talking to people who pay the money at the end of the day. Passengers are aware of, and alert to, the problems that ensue if they choose the gray market.
“In addition, last year, the authorities said that the market in Abu Dhabi is ‘gray market-free.’ The Department of Transport started campaigning against it, and they have had some success. Things are moving in the right direction. We have a long way to go. We haven’t achieved all our objectives yet. One of them is the situation in MENA. We will continue promoting the interests of our members and the business aviation community.
Alnaqbi continues to stress MEBAA’s links to the International Business Aviation Council (IBAC), and its status as IBAC’s sole regional representative, as a key source of its legitimacy. He serves as the organization’s treasurer, and regularly attends its meetings.
“We want to be recognized as a leading player that contributes significantly to the economy. And we are. We complement all the other players. You need to get this message out very clearly. It’s the message from IBAC and all its member associations.”