Market Trends of GCC Aviation Infrastructure Industry
Commercial Airport Segment will Showcase Remarkable Growth during the Forecast Period
The commercial airport segment is anticipated to show significant growth in the GCC aviation infrastructure market. The growing number of commercial airport infrastructure developments will help the market to witness growth in the near future. A steady increase in aviation operations in the GCC region is also expected to increase the need for new airport infrastructure developments in the coming years.
The GCC region comprises some of the most advanced commercial airports in the world, including Dubai International Airport and King Abdulaziz International Airport. Ease in the global COVID pandemic has led to increased travel and tourism within the region, which has led to a positive recovery in aviation operations and air passenger traffic. Such notable growth has led to various airport infrastructure companies within the GCC region investing heavily, thereby increasing the number of advanced airport development projects, such as airport expansion and new airport construction projects within the region.
For instance, in May 2023, Jeddah Airports Company announced that it was in plans to transform King Abdulaziz International Airport into one of the largest airports in the world under a USD 31 billion airport expansion plan, which is expected to include the design and expansion of Terminal 1 and construction of a new passenger Terminal 2. According to the company, the anticipated date of completion of the construction is in 2031. However, in September 2022, Saudi Arabia also announced its plans to construct more than 20 airports, many among them being greenfield airports, in order to ensure airport infrastructure is at par with the rest of the world. Thus, growth in the number of airport construction projects within the region, coupled with growing visa-free entry in GCC countries to strengthen the region’s position as a hub for travel, is expected to lead to the market witnessing significant growth during the forecast period.
Saudi Arabia will Dominate the Market during the Forecast Period
Saudi Arabia held the largest share of the market and continued its domination during the forecast period. Growth in aviation operations within Saudi Arabia has bolstered the development of aviation infrastructure projects. Various airport officials are now looking to invest in technologies for the construction of advanced airports to cater to growing aviation demand. For instance, in October 2023, Saudi Arabia announced that it was in plans to expand its Abha International Airport. The new expansion plan will increase the current terminal area from 10,500 square meters to 65,000 square meters, with the first phase and the construction of the terminal expansion due to be completed in 2028.
Thus, the growth in the number of aviation infrastructure construction projects in recent years due to significant growth in the Saudi Arabian aviation sector will lead to generating a positive market outlook and lead to significant market growth for aviation infrastructure within Saudi Arabia during the forecast period.
