Contributor - Middle East

Peter Shaw-Smith

Despite a tough year for regional business aviation in 2018&nbsp;and a stuttering recovery in 2019, Dubai’s dominance as a Middle East business aviation hub continues, with Al Maktoum International Airport (DWC) continuing to demonstrate its primacy as a bizav and FBO center for the Gulf Cooperation Council (GCC).

 


“I can really put my hand on my heart and say [the situation] is very good,” Ali Alnaqbi, founder and executive chairman of&nbsp;the Middle East and North Africa Business Aviation Association (MEBAA)&nbsp;told AIN. “I can see a business aviation hub and center in Dubai [developing]. It is really doing very well, despite the shared terminal, which is dominated by Jetex Flight Support’s FBO, along with [those of] Jet Aviation and Falcon Aviation.”

 


In addition to these players, DC Aviation Al Futtaim set up DWC’s first FBO in 2013, and ExecuJet manages a temporary facility until work on its new FBO-MRO site at DWC is completed in mid-2021. Jet Aviation and ExecuJet also manage MRO-focused facilities at Dubai International (DXB).

 


“As far as Dubai Airshow is concerned, MEBAA is going to be present,” he said. “Business aviation is always part of [the show] and will continue to be so. There will be many companies from our industry coming.”

 


<h2>Saudi Market Still Hazy</h2>

 


A clear picture of the direction of business aviation in Saudi Arabia has yet to emerge. “There's really a lot of change going on,” Alnaqbi said. “Everybody is sitting back and watching. Those who used to charter aircraft from Saudi Arabia prefer to travel by airline to Dubai, and to other countries, and charter from there. The Saudis are going through a temporary phase. Hopefully, it will not last forever.”

 


He saw most of the Saudi market struggling in 2018&nbsp;and continuing to do so in 2019. “I would love to see the [problems in] the Saudi market sorted out, because when I started MEBAA, I was very happy to see the number of movements, and the size of the market&nbsp;there,” Alnaqbi said.

 


He conceded that the Saudi recovery has been&nbsp;slow. “We wish for something, but the reality is something else. Compared to the situation in Saudi Arabia in 2018, this year has been much better. That's what I meant: that's how bad 2018 was. There was a lot of uncertainty.”

 


New regulations introduced at the end of last year in Saudi Arabia called for business aircraft to be registered onshore under General Authority for Civil Aviation (GACA) regulations, either as Part 121 Special Unscheduled for commercial charter operations, or on an operating certificate for non-commercial operations. This is leading to market consolidation, with single owners moving aircraft under third-party management contracts, and smaller entities merging with larger ones.

 


“You will see that effect in Saudi Arabia: companies joining each other,” Alnaqbi said. “This also happened in Dubai. This was evident at last year's MEBAA Show.&nbsp;It's moving in the right direction. The GCC will finish the year with 8 to 9&nbsp;percent growth in movements overall. The dip in Saudi Arabia coincided with a good figure in the UAE. 2019 will see around 8 to 9 percent growth, the same figure as last year.”

 


Alnaqbi said the Iraqi bizav market is struggling. “There used to be a lot of [oil and gas] activity moving into northern Iraq. Now it's reduced. Baghdad is almost dead for business aviation. It's going to take time. All the Iraqis run their business from abroad.”

 


He commended the establishment of Oman Aviation Group (OAG), the new umbrella entity managing flag carrier Oman Air, Oman Airports, and Oman Aviation Services. “Oman is really moving in the direction of business aviation,” Alnaqbi said. “They are studying the conversion of the existing terminal at Muscat Airport into [a business aviation facility].”

 


Alnaqbi said a number of market participants continue&nbsp;to be negative, no matter how well the market was doing in the GCC. “I am very optimistic. I think the market is heading in a very normal direction; we have a dip, we have a rise, and it's just a case of people sending the wrong message.&nbsp;Most stakeholders send out the wrong message for just one reason. They go to the vendors and say: ‘Business is down; reduce the rent, reduce our costs.’

 


“Despite the disasters that happened, the wars in certain countries, we still maintain very good numbers in regional business aviation. No one can complain, honestly.”

 


Alnaqbi said MEBAA’s strong presence at Dubai Airshow 2019 would underline the importance of bizav in the region. “I would love to see all the companies in the Middle East and North Africa (MENA) grow,” he said. “That's our motive. We would like to smooth the road and to be able to represent all these companies to the authorities.

 


“If you have a problem, come to us. I would like to encourage anyone who has an issue with the authorities, whether in the UAE, Saudi Arabia, or elsewhere in MENA, to come and speak to us. I would love to hear from members who have issues of any kind. Don’t be shy.”

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