Middle East & Africa General Aviation Market - Opportunities, Trends and Challenges (2018 - 2023)
The Middle East and Africa general aviation market is expected to register a CAGR of 5% during the forecast period, 2018 to 2023. General Aviation includes all aviation activities except those of scheduled commercial airlines and the military. Global General Aviation sector is showing tremendous growth due to growing economy especially in developing nations in Africa, Asia, and the Middle East. The numbers of millionaires in the world are rising at a tremendous pace. The number of millionaires in the world increased by more than 7.9% in 2017, as compared to 2016, with a total wealth recorded of more than USD 63 trillion.
The Middle East is a very wealthy region, but the income is concentrated only in the top echelons of society, so the growth of the market though strong will be limited. The situation is similar with Africa, although due to countries like South Africa, Nigeria, Egypt and Ghana, this trend is slowly changing. These countries are experiencing a surge in the number of middle class population and a general rise in levels of prosperity which is slowly increasing the market for General Aviation Aircraft in the region.
The Business jet market in the Middle East and Africa accounts for a major part within the General Aviation market in this region and is poised to grow at a healthy rate during the forecast period mainly due to the geographic location of the Middle East. Within the business jet market, the large cabin and ultra-long range aircraft are expected to be in higher demand during the forecast period.
Since oil is a major source of income in Middle East, the aviation market in the region was increasing at a very rapid pace until 2013 when the oil prices were at record highs. But the oil prices have crashed since then which has affected the finances of the states greatly. Most of the countries in the Middle East region can balance their budgets when the price of oil is near to USD 100 per barrel mark, but with the oil prices fluctuating at a lower level, the disposable income has reduced which has greatly affected the aviation market.
The market growth in Africa is mainly led by South Africa which will show high rate of growth during the forecast period. The market for general aviation aircraft is at a very nascent stage in Nigeria and Ghana, and will emerge as a potential market in the coming years.
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