WASHINGTON STATE DEPARTMENT OF COMMERCE
MRO Market in the Middle East Region
Many global and regional MRO service providers , including Lufthansa Technik , AMAC Aerospace , and JO- RAMCO , have expanded their MRO service network in the region through partnerships and joint ventures . This factor is propelling the growth of aircraft , aircraft engines , and engine MRO services markets in the Middle East region .
The rise in defense spending by major regional economic powers such as Saudi Arabia , Israel , Turkey and Iran , among others , is propelling the demand for military aircraft in the region . Many countries , including the UAE and Saudi Arabia , are focusing on the procurement of refurbished aircraft and upgradation of existing military aircraft fleet . This factor is significantly driving the growth of the aircraft engine MRO market in the region .
Furthermore , Saudi Arabia , United Arab Emirates , and Qatar are actively participating in programs such as the Carbon Reduction and Offsetting Scheme for International Aviation ( CORSIA ).
Other nations in the region are expected to join the aviation emission curbing programs in the foreseeable future . This factor is also supporting the growth of the aircraft engine MRO market .
Based on Boeing ’ s longer-term prediction , the Middle East aviation services market is expected to be worth $ 745 billion ( US ) by 2037 . As part of the expansion of the industry and infrastructure , the maintenance , repair and overhaul ( MRO ) capability will grow as well . According to a recent Oliver Wyman ’ s MRO report , the Middle Eastern market is forecast to grow from $ 9 billion ( US ) in 2019 to $ 13.2 billion by 2029 , of which $ 8 billion will be spent on engines alone .
The Middle East , currently the fourth-largest MRO demand market in the world , will be surpassed by China and fall to fifth by 2024 .
The drop will be from rapid growth in China rather than a deceleration in the Middle East , where the MRO spend will still achieve a CAGR of 3.9 percent over the next 10 years . Highlighted growth is faster than the market average for the forecast period .
Findings and data suggest strong evidence that the MRO market is set for further growth . By 2029 , the Middle East will add $ 4.1 billion in MRO spend and represent more than 11 percent of the global market .
UAE ’ s Aerospace Industry Outlook
The UAE is committed to establishing itself as a regional hub for civil and commercial space activities . The aerospace industry is a vital contributor to the UAE ’ s economy . The industry supports more than 800,000 jobs , contributing $ 47.4 billion ( US ) to the economy , approximately 13.3 percent of the country ’ s GDP . As a result , the UAE ranks in the top five globally for air trade facilitation . Before the pandemic struck , the UAE ’ s aviation industry was a leading sector .
AUGUST | SEPTEMBER 2021 ISSUE NO . 22 53