In December (7-11) this year, approximately 450 exhibitors and 30,000 attendees will arrive in the United Arab Emirates for the Dubai Airshow, the largest event of its kind in the region. The optimism and excitement buzzing around this airshow – particularly compared to the last one – is palpable, and signals the growing sense shared by many business aviation professionals that the Middle East market is entering a period of significant and dynamic growth.

In sharp contrast, the 2001 Dubai Airshow reflected many of the problems that beset the aviation industry as a whole. Held in the immediate aftermath of the September 11 tragedy, it was an understandably downbeat affair. In the period that followed, depressed global economic conditions and conflict in the region dampened down expectations about the potential of the Middle East aviation sector.

However, even throughout this challenging period, the overall business aviation market continued to grow. Records from the Dubai International Airport operations department show that the number of business aircraft movements through Dubai has grown steadily, from 12 to 15 a month in 2000, up to 11 to 12 a day in 2003.

The key factors driving growth in the Middle East market – rising investment levels, demand for alternatives to scheduled flights and a lack of viable surface transport options – kept demand buoyant even after 2001, although on a small scale.

A number of new factors, including changing perceptions of the nature of business aviation, have stimulated the market further in recent months. Most of the evidence we’ve seen, supported by conversations with people across the Middle East aviation industry, suggests that while Dubai Airshow 2001 was held at one of the worst times, Dubai Airshow 2003 may be remembered as the start of the best.

The issue of changing perceptions is an interesting one for those of us working in the region, because concerns about how the use of business aircraft would be perceived had an effect on every aspect of business aviation.

Even though the geography and comparatively under-developed aviation infrastructure of the region make it ideal territory for premier aviation companies, customers still raised questions about how deploying business jets would be perceived. Would using a business jet be seen as frivolous, and be considered an attempt to better oneself against other companies, or would peers perceive it as a legitimate business decision?

There are strong signs that these concerns are beginning to be resolved, partly as more companies look at the hard business benefits of deploying executive aviation, and partly as a new generation of young business entrepreneurs enter the market, and demand the safety, security and flexibility provided by business aviation.

In recent months, the slow growth experienced since 2001 has picked up pace, with strong increases in all aspects of business aviation – charter flights, financing, management, maintenance and aircraft sales.

Perceptions about business aircraft are changing – they’re seen less like a luxury accessory, and more as a business tool that helps companies maximise the productivity of their human resources.

A good example of the change that is occurring in the market is the changing fortunes of fractional ownership programmes. Initially, customers raised concerns about how factional ownership would be perceived in such a status-conscious market and many programmes failed to hit their objectives.\r

However, in recent months, the number of inquiries around fractional ownership is growing. Success feeds upon success in this area – the more companies recognise the benefits of sharing an asset like an executive jet, including the capacity to offset some of their fixed costs on the aircraft, the more seriously companies are willing to consider it.

The end result of this perception shift, coupled with a variety of economic, social and political factors has seen a significant increase in the executive aviation space over the summer months of 2003. A number of new charter companies have emerged in territories like Kuwait and the UAE. The local media are beginning to cover the executive aviation market in greater depth, reflecting the strong interest of the business community.

This is not to say that it’s just blue skies from here on in. Customers’ expectations are rising along with the increased competition, with strong demand for higher standards of service and an entirely premium experience. There are also the challenges of new markets, and the issue of re-establishing easy flight access as part of the rebuilding of Iraq. However, it’s hard not to feel greater excitement about this year’s airshow than the last one.

Horm Irani, Managing Director, ExecuJet Middle East