Jetex has agreed to open its first FBO in Saudi Arabia, finally unlocking the door to a market it has long wanted to enter and setting the stage for the expansion of aircraft ground handling provision in the country. The Dubai-based group has reached an agreement to develop and operate the FBO at Red Sea International Airport (OERS) on Saudi Arabia’s west coast, giving access to a market rich in opportunity but facing a stiff task to bring its substantial plans to fruition. 

Adel Mardini, Jetex’s founder and CEO, signed the deal with the airport’s operator, DAA International (DAAI), on Friday, with the support of Red Sea Global (RSG), the developer behind Saudi tourism destinations The Red Sea and Amaala.

Jetex hopes its arrival at OERS, a gateway for up to 40 new luxury Saudi resorts, will allow the company to replicate its success at Dubai Al Maktoum International (OMDW) and Paris Le Bourget airports. It sees similar opportunities at several other Saudi Arabian airports. 

The general aviation strategy of the country's General Authority for Civil Aviation (GACA) calls for six dedicated general aviation airports nationwide, as well as FBO facilities in private terminals at a further nine commercial airports. 

“That’s my goal,” Mardini told AIN. “First, I want to establish our presence, showcase our product, and then I will shine.” He said he was unable to sign a more comprehensive agreement for FBO services with Saudi Arabia’s aviation authorities.

“Agreements must be made individually,” Mardini explained. “Currently, I’ve been officially awarded [only] one airport. It’s Jetex exclusively at the Red Sea. By next year, we’ll have 50 employees and operate the facility 24/7.”

Dubai-based Jetex was selected as the FBO operator of OERS following a competitive tender process. This is Jetex’s first significant venture into the Saudi market and the first FBO to be awarded under GACA’s new strategy.

Time For More Competition

With Jet Aviation and Saudia Private Aviation being the sole FBO incumbents for many years, Jetex has maintained it was time for more competition. A potentially brand-new FBO complex at the new King Salman International Airport in Riyadh will have FBO operators around the world anxiously looking to exploit the most prominent of multiple tender opportunities.

Jetex expects its workforce to hit 1,000 employees by the end of the year, as revenue growth jumped 15 percent in the first nine months, compared to the same period in 2023, the company reported on the eve of the MEBAA Show.

Today, Jetex operates 39 FBOs worldwide, along with three operations centers. Mardini has plans for four additional FBOs in Europe and the Middle East. “In 2025, we aim to announce a new location every quarter,” Mardini told AIN.

“In the first nine months of 2024, we’ve seen 12 percent growth in movements in Dubai, while Abu Dhabi’s have grown by 50%,” he said. “I now have FBOs in Dubai and Abu Dhabi. We are planning to set up another in Ras Al Khaimah.”

U.S. hotel operator Wynn Resorts is developing the $5.1 billion Wynn Al Marjan Island, the UAE’s first licensed casino, set to open at Ras Al Khaimah's Marjan Island in 2027.

ExecuJet Challenges in Dubai

Mardini indicated that he did not believe that ExecuJet’s new private terminal FBO at OMDW poses a threat to Jetex’s market dominance. Of the 18,000 movements expected in Dubai by year-end, he forecasts a handling share for Jetex of 70 percent. 

“They opened last year, but I haven’t lost any business,” he said. “In fact, I’ve grown by 12 percent this year and maintained our leading position among FBOs at OMDW.”

According to Mardini, operations in Morocco, where Jetex has five FBOs, were doing exceptionally well and in nine months from now it expects to open a new facility in the country. “I visited Marrakech a few weeks ago and business is growing steadily,” he said. “During the Marrakesh Air Show, we handled 55 flights in one day. Next year, we plan to build a new FBO terminal in Casablanca, opening a larger facility at the same location.”

Mardini said that in Egypt, the government managed business aircraft operations, and there were no private operators yet. “However, several flight-support companies are available,” he stated. “Egypt is part of our plans. It is a highly significant market that we’re eager to explore.”

In Kuwait, a tender for FBO services is expected to be released soon, but the specific details have yet to be disclosed. The fall of the Assad regime in Syria to Islamic militants could prompt change in the country's aviation sector but Jetex does not see immediate opportunities there.