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    Home » Competition & Disruption Set to Intensify as Middle East Aviation Enters Next Wave of Transformation
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    Competition & Disruption Set to Intensify as Middle East Aviation Enters Next Wave of Transformation

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    The next wave of rapid transformation may see some aviation markets triple in size in the next decade according to data from OAG in its latest industry report ‘Middle East Aviation: Transformation, Growth and Future Challenges’ but there are still new challenges ahead.

    The report has been released to coincide with this week’s Arabian Travel Market (ATM) and highlights future developments set to unfold in the world’s sixth-largest market, which signify potential disruption and intensified competition in the years to come.

    Key Highlights Include:

    • New airlines, increased mobility and massive infrastructure developments will lead to a period of rapid growth and transformation.
    • A lowering of airfares as increased capacity and new entrants create a consumers’ market.
    • Passenger loyalties will be tested as airlines compete for everyone’s business.
    • New Saudi Arabia based airlines will bring improved levels of connectivity to the country and region.
    • A difficult supply market and a fierce competitive response will challenge ambitious passenger targets.

    Middle East aviation has experienced astounding growth with the fastest-growing country markets including Qatar (12.5% AAGR), United Arab Emirates (9.3%) and Saudi Arabia (6.5%). With airline capacity of 718bn ASKs in 2024 compared to 124bn in 2000, growth is set to continue as this exciting market now enters its next phase, bringing both rapid growth and market complexity.

    Visionary investment in Saudi Arabia has set in motion the creation of new service industry sectors, which should see the country bring airline passenger volumes in line with other regional markets. Whilst the target is ambitious, achieving such a number is becoming increasingly challenging as the aviation sector faces a series of supply challenges.

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