RIYADH: Saudi Arabia’s business aviation sector is booming, fuelled by the country’s expanding economy, heavy government investment in infrastructure and an increasing influx of wealthy individuals.
According to TechSCI research, the segment will be worth $1.2 billion in 2023 and is projected to grow at a compound annual growth rate of 8.88% between 2025 and 2029.
This was also highlighted in the General Authority of Civil Aviation’s roadmap, presented at the Future Aviation Forum in Riyadh in May.
The roadmap aims to support the Kingdom’s development as a globally valued business and tourism destination.
It also covers the business jet sector, which includes charter, private and corporate aircraft, and aims to increase the general aviation sector’s contribution to gross domestic product tenfold to $2 billion by 2030.
Farid Ghalzeddine, captain and CEO of Dubai-based private jet company Skymark Executive, told Arab News that “the private aviation and charter business in Saudi Arabia has always been thriving, serving individuals, corporate executives, government officials and special missions.”
Skymark Executive Captain and CEO Farid Ghalzeddine. (Provided)
He added: “In 2023, the sector experienced significant growth driven by the Kingdom’s Vision 2030 and efforts to move away from oil, particularly through the promotion of sectors such as tourism and entertainment. These initiatives have had a major impact on the private charter industry, affecting both destinations and customers.”
During this period, Skymark executives acting as a private aircraft provider explained that they had seen a significant increase in requests for flights transporting tourists, entertainers and artists from overseas to emerging destinations such as AlUla and Red Sea Airport.
Red Sea International Airport, which has a population of 250 million within a three-hour flight time, opened its first international flights earlier this year.
With the capacity to accommodate one million guests per year, the milestone marks a significant step in establishing Saudi Arabia as a leading global tourist destination, according to the group’s CEO, John Pagano.
According to Motor Intelligence research, the GCC region is a very promising region for business aviation and is also a lucrative market for the civil aviation sector due to the region’s large population of affluent and ultra-high net worth individuals.
The Kingdom’s efforts to expand foreign direct investment have likely led to an influx of multinational companies setting up regional headquarters in Riyadh, boosting demand for private aviation as corporate executives and wealthy individuals seek efficient and flexible travel options, fuelling the growth of private jet and charter services.
Anticipating increased demand for new business jet models with greater cabin space and longer-range capabilities, players are investing in technological innovations to enhance the manufacturing, operation and maintenance of the aircraft.
Manufacturers such as Gulfstream, Bombardier and Embraer are poised for growth over the forecast period as they focus on increasing luxury, technology and performance to appeal to GCC customers.
Vehicle manufacturers are poised for growth during the forecast period as they focus on enhancing luxury, technology and performance to appeal to GCC customers. (Supplied)
As proof of this, Qatar Executive is the world’s largest operator of two of Gulfstream’s new aircraft, the G500 and G650ER.
Ghalzeddine said the airline’s customers in Saudi Arabia are often the most discerning customers, prioritizing cutting-edge technological advancements when choosing aircraft for their travel needs.
“These clients prioritize excellence in service delivery and value both advanced technology and exceptional service standards. They are committed to elevating the travel experience to achieve the highest levels of comfort, safety and luxury,” he added.
Furthermore, the sector is well placed to benefit from Saudi Arabia’s aviation strategy, which aims to expand connections to more than 250 destinations by 2030. A key element of this plan is privatization, with Saudi Arabia being the first in the Middle East to implement a successful public-private partnership model.
GACA also announced at the Future Aviation Forum that it would focus investments on six new general aviation airports in the Kingdom, among other initiatives.
“These investments are expected to improve the quality of infrastructure and services in the civil aviation sector, making it more attractive to high-net-worth individuals and corporate clients,” Ghalzeddine said.
“Improved facilities and services are likely to increase demand for private jet charter and ownership, improving efficiency and capacity across the aviation sector. Furthermore, these developments will establish Saudi Arabia as a leading hub for private aviation in the Gulf region,” he added.
Charter Business and Sustainability
Leading the transformation towards sustainable aviation growth, Saudi Arabia announced in November the completion of a comprehensive plan to address environmental sustainability in the civil aviation sector, in line with international commitments such as the 2015 Paris Agreement.
The Civil Aviation Environmental Sustainability Plan, spearheaded by GACA, aims to reduce greenhouse gas emissions, with a goal of zero emissions by 2060.
Saudi Arabia’s efforts extend to green projects such as hydrogen fuel infrastructure and a circular carbon economy, with major developments such as the AMAALA and Red Sea projects reflecting its commitment to net-zero emissions.
Business and government leaders around the world see sustainable aviation fuel as a key opportunity to significantly reduce emissions from air travel, and numerous efforts are underway to make this energy product a reality.
SAF is produced from renewable hydrocarbon sources and can reduce carbon emissions by 75% compared to traditional fossil-based jet fuel.
However, the main challenge is one of demand and supply, as production will need to increase significantly to meet the targets set for 2030.
In addition to limited supplies, achieving economies of scale to reduce production costs is an ongoing challenge, as is the high cost of the specialized processing required for biofuels, Gulzeddine said.
As reported by The National News in February, the UAE’s chief negotiator for aviation climate change, Maryam Al Balushi, also stressed the urgent need for the Gulf state to produce SAFs to compete in a Western-dominated market and support greener flying.
An important aspect to consider is how technology and artificial intelligence can play a key role in driving sustainable aviation: advanced flight planning systems use AI to optimize flight paths, reduce fuel consumption and minimize carbon emissions.
“By analyzing weather patterns, air traffic and aircraft performance in real time, AI can suggest more efficient routes and altitudes to ensure flights are conducted at peak efficiency,” Gulzeddine explained.
AI-powered predictive maintenance increases sustainability by identifying potential issues before they become critical, reducing downtime and extending the life of aircraft parts.
Additionally, AI-powered data analytics can help monitor and manage the carbon footprint of each flight, allowing operators to make informed decisions about fuel usage, weight management and other factors that affect emissions.
By leveraging advanced technology, AI and SAF, Saudi Arabia’s civil aviation sector can meet growing demand while setting a sustainability benchmark in the global aviation industry.
