In light of Dubai Airshow, occurring now and ending Thursday, Boeing has released its forecast for the new airplane market for airlines in the Middle East. Over the next two decades, Boeing said the region is going to need 3,350 new airplanes.
"Traffic growth in the Middle East is expected to grow at 5.6% annually during the next 20 years," said Randy Tinseth, VP of marketing for Boeing Commercial Airplanes. "The fact that 85% of the world's population lives within an eight-hour flight of the Arabian Gulf, coupled with robust business models and investment in infrastructure, allows carriers in the Middle East to channel traffic through their hubs and offer one-stop service between many cities."
This demand, according to the manufacturer, is going to be worth an estimated $730 billion. Twin-aisle airplanes should make up nearly 50% of the new airplanes, Boeing said, and more than 70% of that $730 billion at $520 billion. These percentages are higher than the global average. Boeing also predicts strong long-term demand for widebody aircraft, especially considering Emirates Airline committed to purchasing 40 787-10s during the show. With current list prices, the deal is valued at $15.1 billion. Boeing said single-aisle aircraft demand would be valued at $190 billion. The region would need 1,770 of them.
"From training the next generation of pilots to creating tailored solutions and everything in between, the combined commercial and defense services market is estimated at $2.6 trillion over the next 10 years and includes strong opportunities in the Middle East," said Tinseth.