Enjoying the ride: ME regional banks on plane orders 'funding' boom
Boeing forecasts that airlines in the Middle East will require 2,610 new airplanes over the next 20 years, worth an estimated $550 billion.
Click here to add Aircraft Financial Services as an alert
Disable alert for Aircraft Financial Services,
Click here to add Boeing Capital Corporation as an alert
Disable alert for Boeing Capital Corporation,
Click here to add Doha as an alert
Disable alert for Doha,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Jeff Johnson as an alert
Disable alert for Jeff Johnson,
Click here to add Tim Myers as an alert
Disable alert for Tim Myers
Boeing, a leading aircraft manufacturer, said today that 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.
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 per cent 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.
“This regional growth is not expected to slow down in the near future,” Johnson added. “Dubai air traffic has been consistently growing between 5 and 7 per cent annually, higher than the global average of 3.5 per cent. Abu Dhabi International Airport reported a 21.7 per cent year-over-year traffic increase in July, and the Hamad International Airport in Doha has handled more than 2 million passengers since its opening in April. With key regional players making significant leaps in aerospace infrastructures, I have no doubt that the Middle East will continue to outpace other markets in travel industry growth for some time.”
This traffic growth is being matched by growth in local aircraft asset financing. “We are particularly pleased to see increasingly greater diversification in the source of funding as airlines seek to finance these new airplanes,” Myers said.
The Dubai conference is one of five that Boeing hosts in major aircraft financial centres annually to provide market updates and address investor questions on aircraft investment opportunities.
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- Show me the money: Lebanon addresses bank transfer delay problems
- Swiss Leaks revisited: Strong Egyptian presence in banking scandal
- Saudi market plans IPO in 2018
- Understanding the ripple effect: 8 reasons the US economy has slowed down in Q1 of 2015
- Boeing: Aircraft investment appetite drives strong conference attendance
- Boom in commercial aircraft sales driven by increased travel demands in Middle East
- Boeing sees record attendance at fifth regional financiers’ conference
- It's contagious after all? Mecca's surroundings experiencing 'unprecedented' real estate boom in Saudi
- Should the Gulf be freaked out by the US shale boom?