Boeing says commercial financial institutions in the Middle East are increasingly funding the region’s record number of airplane deliveries.
Boeing forecasts that airlines in the Middle East will require 2,610 new airplanes over the next 20 years, worth an estimated $550 billion. While one-third of that demand – 900 airplanes – will replace today’s fleets, 66 percent of the demand is expected to be driven by the rapid fleet expansion in the region, Business Intelligence Mideast reported.
Tim Myers, vice president and managing director of Aircraft Financial Services for Boeing Capital Corporation, said bank funding for airplane deliveries is becoming a global industry and the Middle East is playing an increasingly significant role.
“Last year alone, more than 65 percent of all deliveries to airlines in the Middle East were funded from within the region,” Myers said. “Over the past few years we have seen great success by Middle Eastern banks and investors providing sources of financing for the Middle Eastern carriers, but they have been expanding outside the region by providing equity, debt, Islamic Financing options and more.”
Myers and Jeff Johnson, president of Boeing Middle East, hosted more than 180 of the region’s leading aircraft financiers and investors at its annual conference in Dubai.
“The health of the Middle East’s air travel industry and the sustained performance of commercial aircraft assets continue to create good investment opportunities, which was well reflected in the strong attendance at our financiers and investors conference,” Johnson said.
“Dubai air traffic has been consistently growing between 5 and 7 percent annually, higher than the global average of 3.5 percent. Abu Dhabi International Airport reported a 21.7 percent year-over-year traffic increase in July, and Hamad International Airport has handled more than 2 million passengers since its opening in April. This traffic growth is being matched by growth in local aircraft asset financing,” he said.
