Lifting Economies The Impact of the Aviation Sector on Middle Eastern Economies By Aviation Business ME Powered bySource: GE AerospaceThe aviation sector in the Middle East is unique among its peers. Its airlines are connecting people from the furthest corners of the globe. Its governments are demonstrating sustained commitment to an industry recognized for its tremendous power to boost economic development and growth. Local and international airframe, aircraft engine, MRO and other technology providers are focused on meeting the distinct needs and requirements of this market. Its passionate and committed workforce delivers every day to keep the industry moving forward. There are clear reasons why aviation in the Middle East stands apart. As this white paper demonstrates, it has established itself as one of the most dynamic and impactful industries anywhere on the globe. Not only is the sector already having a significant impact, its ability to foster job creation and economic growth is forecast to accelerate. This white paper is a celebration of what our industry has already achieved and what it is set to accomplish in the years ahead. This document makes clear that those of us working in this industry can be proud that what we do every day has a profound and positive impact that ripples across our communities. Forward By Aziz Koleilat President & CEO – METCIS, GE Aerospace 1In the Middle East, the aviation sector plays a significant and strategic role in economic development. As this white paper explains, aviation has a multiplier effect on regional economies. From job creation, which is set to more than double – the highest increase in jobs for any region – to GDP where aviation’s contribution is set to increase by more than 150% – also among the highest. These numbers reveal a unique aspect of the Middle East’s aviation sector. While today the sector has a relatively high rate of GDP and job impact on par with regions like Europe and North America, its impact is projected to grow at a more rapid pace on par with regions such as Africa and Asia-Pacific. This is primarily driven by two factors. First, governments across the region have made large and high-profile investments in strengthening the sector. Second, the region is itself fast-growing and surrounded by other regions with similarly high growth projections. We will see that these two elements – government policy and geography – are central to the strength of the region’s aviation sector and its outsized impact on regional economies. This white paper explores both elements and takes a deeper dive into the numbers themselves, on both a national and regional level. In addition, a special focus on Saudi Arabia’s aviation sector provides on-the-ground examples of the mechanisms by which aviation contributes to economic development. The case study also illustrates the kinds of policy choices governments are making to further deepen and strengthen aviation and related sectors. Looking ahead, this document explores emerging trends that will impact the regional industry, including the expanding role of artificial intelligence in everything from predictive maintenance to fuel optimization by pilots. Sustainability will become even more central, with sustainable aviation fuel (SAF) and engine design innovations helping move airlines toward the industry’s net-zero carbon goals. The synergies between the aviation sector and the emerging space industries in the region also will be examined. The white paper concludes with a series of recommendations to further strengthen the sector and amplify its impact on regional economies. These include greater harmonization of laws and regulations, expansion of airspace availability, and more in-region training and education. Other suggestions include ensuring that infrastructure spending is rigorously assessed and implemented efficiently, and even more policy action to support SAF uptake and supply build-out. Finally, given the significant role tourism is set to play, governments need to pursue outreach internationally to burnish the image of the region in the eyes of prospective tourists. Executive Summary Aviation’s impact on the Middle East Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies 4.3% of GDP 4 million jobs: direct, indirect, induced & tourism catalyst 5% of all employment, the highest share globally 580,000 direct jobs $3.60 of economic activity supported by every $1 of aviation value add Source: GE Aerospace 2Almost since the first "heavier-than-air" aircraft1 began flying in the early 20th century, fixed-winged aviation has shown itself to be a powerful enabler of business, trade, tourism, and economic development. Early flights illustrated many of the ways aviation still impacts economic life today. The first airmail flight took off from Allahabad, India2 in 1911. Such services quickly expanded, first within countries and later internationally and across oceans, providing an early demonstration of aviation’s power to foster commerce by linking markets and operations over vast distances. Three years later, the first regularly scheduled passenger route was launched between the cities of Tampa and St. Petersburg in Florida, United States. A trip that previously took hours, now took only 20 minutes.3 In 1919, the first scheduled international passenger flight took off, flying from London to Paris,4 launching the global aviation industry. Economic enabler Today, aviation is well understood as a central pillar of modern commerce and a vital contributor to economic growth. Aviation supported 3.9% of global GDP and 86.5 million jobs in 2023, with a US$4.1 trillion direct, indirect, induced and tourism impact.5 In 2023, the value of air cargo was US$8 trillion and accounted for 33% of world trade by value (just 1% by volume). In the Middle East, with its central geographic position, deepening integration into the global economy, government focus on the sector, and extensive tourism assets, aviation's impact on GDP is even higher than for the world as a whole. In 2023, aviation contributed 4.3% to Middle East GDP, or US$290 billion, and supported 4 million jobs. The region’s aviation sector is punching above its weight in other areas as well. Two of the top ten busiest airports for international passenger traffic are in the Middle East, with Dubai in first place and Doha in tenth place. Even considering overall airport passenger traffic, both domestic and international, Dubai is second globally. Meanwhile, Doha is 8th globally in terms of cargo traffic.6 Middle East airlines also contribute to the regional economy through their own profitability. In 2024, the International Air Transport Association (IATA) reported7 that Middle East airlines collectively achieved a net profit of US$6.1 billion, with an 8.9% profit margin and the highest per-passenger net profit of any region (US$28.50). That’s nearly triple the next highest region’s per-passenger net profit (US$10.1 in North America). The Middle East number is driven, in part, by the large share of widebody traffic flown by these airlines. Given that most airlines in the region are closely connected to governments, those profits are likely to flow into national economies. Introduction: How aviation supports economic development Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies 1 As opposed to lighter-than-air dirigibles 2 https://postalmuseum.si.edu/collections/object-spot- light/worlds-first-official-air-mail-by-airplane-india-1911 3 https://www.iata.org/en/about/history/flying-100-years/firstairline-story/ 4 https://simpleflying.com/first-international-passenger-flight-history/ 5 Unless otherwise noted, all aviation economic impact data comes from the 2024 and 2017 "Aviation Benefits Beyond Borders", published by the Air Transport Action Group. Most GDP and jobs impact data are for calendar year 2023 and 2016, respectively 6 https://aci.aero/2025/04/14/the-busiest-air- ports-in-the-world-defy-global-uncertainty-and-hold-top-rankings/ 7 “Global Outlook for Air Transport – Protectionism on the rise.” Source: Stock image-FREEPIK 38 https://www.weforum.org/stories/2024/01/travel-tourism-role-future-global-prosperity/ 9 “New study shows airports & air connectivity power 5% of European GDP - also supporting quality education, gender equality, R&D and well-being”, Air Council International, October 2024 10 https://unitingaviation.com/news/general-interest/what-contri- butions-does-air-transport-make-to-the-un-sustainable-development-goals/ Advanced technologies Aviation is a highly specialized, advanced technology industry. It is built upon some of the most complex, precision manufactured systems, components and parts. Only a handful of companies manufacture the industry’s airframes, engines and avionics. From airport operations and air traffic control to the maintenance, repair and overhaul (MRO) of aircraft and engines, the industry requires advanced equipment, software and supply chains. Personnel working across the entire industry are often among the most skilled and highly trained in their fields. Tremendous tourism Aviation is essential for tourism, one of the most important contributors to service-sector GDP. Fifty-nine percent of global tourism is facilitated by air travel. In 2022, global tourism accounted for 7.6% of all economic activity on Earth and 9% of total employment.8 By 2032, tourism is set to take an even larger share: 11.6% of GDP and 11.8% of employment. Countries in the region understand this well. Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies The industry’s social impact is apparent when assessed against the United Nations Sustainable Development Goals. Building on an International Civil Aviation Organization (ICAO) discussion,10 key impacts include: Aviation’s impact on UN Sustainable Development Goals Social benefits Beyond pure economics, air connectivity provides social benefits as well. An Airports Council International report looking at air connectivity in Europe found that every 10% increase in direct air connectivity is correlated with a 14% reduction in poverty, a 9% improvement in education access, and an 8.5% increase in investment in research and development.9 Human Development Aviation and air connectivity play an important role in addressing a number of human development-related priorities. Aviation enables the rapid and reliable delivery of food, and many other goods necessary for families and businesses. Healthcare also benefits greatly from access to medicine and vaccines, medical equipment and devices, and clinicians across long distances. When disaster strikes, conflicts develop, or other emergencies arise, air connectivity plays a crucial role in supporting humanitarian relief through the United Nations Humanitarian Air Service (UNHAS), the World Food Program (WFP), and other charities. SDGs addressed No Poverty Zero Hunger Good Health and Wellbeing Source: Stock image-FREEPIK 411 https://www.oecd.org/en/publications/influencing-air-connectivity-outcomes_997d4a23-en.html Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies Economics and innovation Aviation supports economic development that drives down inequality by facilitating trade links and providing faster access to human expertise, raw materials, equipment, electronics, and other goods and services, even to people in remote communities. A study by the OECD observes that “air connectivity is an asset improving the global competitiveness of cities, regions and countries. Connectivity growth decreases travel costs for consumers and businesses and facilitates global contacts and trade.” The study also finds air connectivity fosters trade specialization.11 These trade links improve access to goods and services, thereby helping to reduce inequality among individuals and countries. The industry itself fuels construction of significant infrastructure – from airport buildings to runways to MRO facilities. As this white paper demonstrates, the aviation industry’s contribution to GDP and job creation is substantial. Every day, aviation transports US$21.9 billion worth of goods. The contribution to economic growth is even higher in the Middle East, accounting for 4.3% of GDP and one in every 20 jobs. Sustainability The global civilian aviation industry is committed to achieving net-zero by 2050. Many technologies and approaches will help achieve this goal, including development and adoption of sustainable aviation fuels (SAF), which reduce CO 2 emissions by 80% over their lifecycle, compared with fossil fuels. Engines also are being certified to run on approved SAF blends, including all GE Aerospace civilian and defense jet engines. Other technologies include hybrid-electric engines, and breakthrough engine design improvements to lower fuel consumption. As noted in this white paper, aviation-related infrastructure can play a major role in a community's economy, creating jobs and markets for local businesses, while also helping urban and rural connectivity by integrating into community transportation links. Aviation also drives high-value, high-impact innovation. The industry is focused on safety and quality through some of the world’s most advanced and most sophisticated technologies, equipment and systems. This fosters massive, industry-wide investments in R&D that bolster advancements in areas such as material sciences, additive manufacturing, and multiple engineering disciplines. SDGs addressed Decent Work and Economic Growth Industry, Innovation and Infrastructure Reduced Inequality SDGs addressed Affordable and Clean Energy Sustainable Cities and Communities Climate Action Clean Water and Sanitation 5Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies Public recognition of aviation’s role The flying public understands the vital contributions of aviation. An IATA poll12 released in June 2025 shows that not only do 90% of flyers agree that air travel is a necessity for modern life, nine out of ten say that air connectivity is “critical” to the economy. In fact, 89% say air travel has a positive impact on societies, with four in five saying that the global air transport network is a key contributor to UN Sustainable Development Goals. The 2024 Aviation Benefits Beyond Borders report defines the direct, indirect, induced and tourism impacts on the economy as follows: Direct impact includes the activities of airlines and airports; maintenance, repair and overhaul operations; passenger-related in-airport services; air traffic control, and ground handling. Indirect impact includes the supply chains supporting the above-mentioned operations, including aircraft and engine parts, fuel supply, construction (e.g., airports), and professional services. Induced impact includes all the spending in the economy on things like housing, education, food and leisure by those working directly or indirectly in the aviation sector. Tourism impact represents all the spending by tourists who reach their destination by air travel (58% of all global tourism).13 12 https://www.iata.org/en/pressroom/2025-releases/2025-06-02-01/ 13 2024 Aviation Benefits Beyond Borders", published by the Air Transport Action Group Defining the impact Source: GE Aerospace Source: GE Aerospace 6Lifting Economies | The Impact of the Aviation Sector on Middle Eastern Economies For countries across the Middle East, and particularly Gulf states such as Saudi Arabia, Qatar and the UAE, effective economic development is crucial for dealing with changing demographic and macroeconomic trends. On the one hand, young and growing populations mean governments need to create meaningful employment for the thousands of people entering the workforce. On the other hand, hydrocarbon exporters recognize that it is not sustainable to rely on oil and gas revenues – both because reserves are running out for some countries, and global demand is likely to fall in coming decades with the rise of renewable energy and electrification. “Saudi Arabia and other countries in the region need to create a great number of jobs to ensure people have employment,” said Dr. Dan Wong, an aviation industry consultant and recently retired Associate Professor and Aviation Program Leader at Prince Sultan University in Riyadh. “Aviation is a major source for jobs, while also supporting tourism, which has been shown to be one of the largest generators of income, and jobs, for countries around the world,” he said. 14 The CEO of the Oman Aviation Group was widely quoted in local media in 2019 stating these goals. https://cdn.timesofoman.com/article/73342-40-million-passe gers-to-fly-through-oman-by-2030 National goals National Visions and the Role of Aviation The industry also is central to building logistics and manufacturing sectors – key priorities for countries in the region looking to diversify and expand their economies, Dr. Wong said. “Aviation and the connectivity it provides are essential to develop economies and move them forward.” As a result, countries across the Middle East have identified aviation as a pillar of their economic development goals, whether embedded in national vision documents, such as Egypt Vision 2030, or in industry-focused policies, such as the Saudi Aviation Strategy. EGYPT • 110 million passengers/year by 2030 • 30 million tourists/year by 2028 • Double passengers carried by EgyptAir to 22 million over the next five years • Expand destinations served to 100 by 2030 QATAR • QAR 25 billion (US$6.86 billion) in annual re-exports for the logistics sector by 2030 • 6 million visitors in the tourism sector UAE • Increase tourism sector’s contribution to GDP by 2.5 times to AED 450 billion (US$122.52 billion) by 2031 • Al Maktoum International development to handle 150 million passengers within 10 years • Etihad Airlines seeks to double its fleet of 98 aircraft by 2030 SAUDI ARABIA • 250+ destinations from 29 Saudi airports by 2030 • Triple annual passenger traffic to 330 million • Increase air cargo volume to 4.5 million tons • Increase tourism to +300 million JORDAN • 71% fleet expansion at Royal Jordanian by 2028, to 41 aircraft • MRO operator Joramco's five-year plan aims for 9 hangars with 27 lines OMAN 14 • OMR 890 million (US$2.31 billion) contribution to GDP by 2030 • 40 million passengers/year Source: Stock image-FREEPIK 7Next >