Global Jet Survey Reveals Optimism in Middle East Private Jet Market
DEC 7, 2016 - 8:03 am
New research from Global Jet Capital reveals that 59% of business aviation professionals believe the Middle East private jet market is currently attractive for finance companies. Only 15% think it is unattractive.
The survey of more than 200 business aviation professionals reveals that over the next three years, 41% expect this market to become more attractive, compared to 13% who believe it will become less appealing.
Over the next 10 years, Global Jet Capital estimates that as many as 350 new business jets worth an estimated $10.5 billion could be delivered to the Middle East. The corporate aircraft financier believes that 220 of these jets could be medium to large in categories, which are the types it prefers to finance.
Currently, Global Jet Capital pegs the number of business jets currently in that area at 739, with 83 business airliners, 112 large jets, 537 medium-sized jets, four light jets and three very light jets.
Simon Davies, Global Jet Capital’s sales director for the Middle East, said, “We specialize in funding the purchase of mid to large private jets, and these typically cost between $25 million and $75 million 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.”
Additionally, 51% of business aviation professionals expect the availability of finance for the global business aviation sector will increase between now and 2019, with 8% predicting the increase to be dramatic. Just 21% expect the level of funding to purchase business aircraft to fall over the period, with 23% believing that it will remain at current levels until 2019.
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