Global Jet Capital, a global provider of financing solutions for corporate aircraft, has been conducting its own research into the growing business aviation market in the Middle East. Its findings show that there are around 73 mid to large private jets for sale in the region, with a combined value of US$939m, and that 59% of business aviation professionals believe the market to be attractive currently for finance companies.
Of the 73 aircraft for sale, Global Jet Capital found 26 registered in the UAE, with 23 in Saudi Arabia, while the remainder spread out in countries including Turkey and Kuwait. The findings also show that in total, there are around 732 mid-size, large and airliner-size private jets in the region, which means roughly 10% of the market is currently for sale. The bulk of these purchases will be based on leases and loans.
In terms of the attractiveness of the market, Global Jet Capital surveyed 200 business aviation professionals, and discovered that over the next three years 41% expected its appeal to increase and 13% said it would decrease. While 59% called the regional market attractive, 15% said it was currently unattractive.
Simon Davies, Global Jet Capital’s sales director for the Middle East, said, “Many potential clients in the Middle East are looking to upgrade to a more modern aircraft, and we can help them finance their new jets. Some 350 business jets are expected to be delivered to the Middle East over the next 10 years.
“We specialize in funding the purchase of mid to large private jets, and these typically cost between US$25m and US$75m each. Up to 80% of the purchase price is sourced through external financing and if over 200 of these aircraft are going to be delivered to the Middle East between now and 2025, this becomes an increasingly attractive market for us.”