DUBAI - The business jet market in the Middle East will grow around 11 percent this year and is forecast to witness annual growth of 6.2 percent until 2018 as the number of millionaires in the region continues to rise, Frost & Sullivan said on Monday.
The consultancy said in a report that business jet movements have growth to 103,000 this year from 93,000 in 2008 despite weaker economic conditions, and the figure is expected to reach 160,000 in 2018.
"In 2005, the number of high net worth individuals (HNWIs) was around 0.25 million in the Middle East, accounting for nearly 3 percent of the global HNWI population," Frost & Sullivan analyst John Siddharth said in a statement.
"This is anticipated to become 5 percent or approximately 0.7 million by 2012, positively impacting the market's prospects."
The consultancy estimates the air taxi sector recorded revenues $493.9 million last year.
It said the growth offers lucrative prospects for light aircraft makers, with the number of business jets to be delivered in the Middle East expected to hit 458 by 2018.
“There is significant potential for the very light jets market in the Middle East,” Siddharth said.
Frost & Sullivan said Saudi Arabia holds about 37 percent of the market potential in the Middle East, followed by the UAE with nearly 24 percent.