$600bn needed to meet regional aircraft demands by 2038

Saif Mohammed Al-Suwaidi
Updated 06 August 2019

$600bn needed to meet regional aircraft demands by 2038

Regional aircraft markets will need $600 billion in investments to meet the demand for 150-seat 10,550 aircraft by 2038 due to rise in air travelers, according to a report by aerospace company Embraer. Market growth will drive 65 percent of this demand for the aircraft, while the remaining 35 percent will replace aging aircraft, the report added.

These developments will be one of the highlighted investment opportunities at the next edition of Global Investment in Aviation Summit (GIAS). 

GIAS is an initiative of the UAE General Authority of Civil Aviation (GCAA) and will be held from Jan. 27 to 29th in Dubai under the theme “Enabling Global Aviation Growth through Fund Raising and Key Partnerships.” 

The mega event will bring together more than 200 investors, besides selected government officials, aviation organizations, finance and insurance firms, aviation asset owners, aircraft operators and logistic service providers and legal consultants.

Saif Mohammed Al-Suwaidi, director general of UAE-GCAA, said: “Investments in aviation are more vital now as regional aviation enjoys the economic benefits of robust tourism and improved regional connectivity. The rapid growth of aviation is propelled by many factors, including booming tourism industry, lower air fares, improved connectivity, and the rise of disposable incomes with the middle-class expansion. All these and more will be part of the investment opportunities that will be presented at GIAS.”

Asia Pacific will drive the highest market share for 150-seat aircraft capacity by 28 percent or 3,000 deliveries with North America following closely behind with 2,780 (27 percent), Europe with 2,240 (21 percent), Latin America with 1,140 (11 percent), CIS with 580 (6 percent), Africa with 450 (4 percent) and the Middle East with 360 (3 percent), according to Embraer, a Brazilian manufacturer of commercial aircraft with up to 150 seats.

Contributing to the greater demand for airline services is the successful tourism promotion of emerging economies.

Al-Suwaidi also added that as aviation is a key pillar in UAE national economy, the nation is investing heavily on modernization and expansion of its major international airports to meet the demands for passenger traffic, which is anticipated to increase every year. 

Investment opportunities in the UAE and participating countries will be featured during the three-day GIAS in January.

STC offers free 5G service for two months

Nasser Al-Nasser CEO of STC
Updated 12 November 2019

STC offers free 5G service for two months

Saudi Telecom Company (STC) is offering its 5G services free of cost for a period of two months starting from the subscription date. This service will enable customers to benefit from high speeds based on STC’s strong network in the Kingdom.
STC CEO Nasser Al-Nasser confirmed the group’s commitment to continue leading in the 5G era, highlighting its leadership as the first operator in the Kingdom and the Middle East to launch the live network for 5G in May 2018.
The telecom giant had deployed its 5G network at 196 sites in Makkah, Madinah and other holy places, such as Mina, Arafat and Muzdalifah during Hajj this year.
“The launch of the 5G package reflects STC’s commitment to its pivotal role as a key enabler of digital transformation and the development of the telecommunications and information technology sector in the Kingdom,” Al-Nasser added.