The aviation market in the Middle East is experiencing significant growth, primarily due to growing passenger traffic. According to the IATA, the passenger traffic in this region may grow by 5% per year. In order to cater to the growing demand, airlines are procuring new generation aircraft and starting its operations on new routes. Countries in the Middle Eastern region are in need of over 2,600 new aircraft in the next 20 years, in order to cater to the increasing number of air travelers in the region. On the other hand, shifting oil prices, currency fluctuations, and pilot shortages (more specifically in the UAE), may be the main restraining factors, which are expected to affect the growth of the market. Additionally, military aviation in the Middle East is expected to witness impressive growth in the coming years, owing to various fighter jet deals, which have been acquired recently by Kuwait, Qatar, and Bahrain.
The commercial segment has the highest share out of all the segments. The growing number of aircraft deliveries in the Middle East in the past few years has led to the Middle East gradually becoming one of the major hubs for civil aviation operations. Over the next two decades, the Middle Eastern region is expected to order about 2,900 aircraft. Out of the estimated number of aircraft deliveries, almost half of the deliveries will be for wide-body aircraft. The increasing number of air travelers in the Middle Eastern region is one of the main factors for the increase in the number of commercial aircraft orders. Major carriers, like Qatar, Emirates, and Etihad, are expanding their fleet size to cater to the growing demand for air travel in and out of the region. In the last few years, several contracts have been signed by these carriers with Airbus and Boeing for new aircraft. Few of the deliveries are expected during the forecast period.