Ionic Insights: The Business Jet Fleet in the UAE (November 2022)

In the run-up to next month’s MEBAA Show in Dubai, this seventh iteration of Ionic Insights focuses on the United Arab Emirates. We analyse the size, composition and age of the installed business jet fleet, whilst simultaneously investigating the most numerous aircraft registries, operators and base locations.

Market Summary

The UAE has a population of a little over ten million but already boasts the region’s largest fleet of business aircraft. With a total of 108 jets*, the fleet is now twenty-five percent larger than that of its larger neighbour, Saudi Arabia. Over half of all aircraft are based in the business, tourism and cultural hub of Dubai, whilst a quarter are based in the capital city of Abu Dhabi.

The dominant aircraft types are in the ‘heavy’ (ultra-long and corporate airliner/bizliner) segment; these represent over two-thirds of all aircraft.

Whilst Bombardier is the largest OEM by fleet size with 30% of the fleet, it is notable that the Boeing Business Jet (BBJ) product line makes up over one fifth of all aircraft. This includes a total of twenty-four BBJ1, BBJ2, BBJ3, 747, 777 and 787 variants that are operated for the governments of Dubai and Abu Dhabi by Dubai Air Wing and Presidential Flight respectively, and Royal Jet.

Unsurprisingly, light jets make up less than 6% of the fleet. The largest owner-operator of light jets is Emirates Flight Training Academy in Dubai, with a total of five Embraer Phenom 100EV aircraft. Interestingly, the Cessna Citation product line does not currently feature.

Overall, the average age of the fleet is 13 years; whilst a little under half of all aircraft are registered domestically, A6.

Opportunities for Financing

The financing of bizliners, particularly widebodies, for UHNW clients is most commonly driven by a handful of international private banks who do so on the basis of a client’s wider wealth relationship. That being said, asset and credit-based solutions exist for narrowbody variants such as BBJs, ACJs and the Embraer Lineage, albeit at more conservative advances and with faster amortisations than might otherwise be available for other new and pre-owned business aircraft.

A summary of the fleet is included in the following slide:

*Source: AMSTAT, Nov 22