The Middle East fleet of commercial airliners is projected to grow at a compound annual growth rate (CAGR) of 5.1% over the next decade, according to the Global Fleet and MRO Market Forecast, 2025-2035 report from Oliver Wyman, a global management consulting firm and business unit within Marsh McLennan.

 

This is almost double the 2.8% annual growth rate anticipated for the fleet worldwide over the same 10 years, reflecting the region’s rising demand for air travel, it said. 

 

The Middle East’s share of the global fleet is also expected to increase from 5.3% to 6.7% by 2035, as its fleet expands to close to 2,600 of the world’s more than 38,000 aircraft by 2035. 

 

Reflecting the increase in aircraft, the spending on maintenance, repair, and overhaul (MRO) in the region will also trend upward, topping $20 billion in 2035. The MRO spend in 2025 is expected to reach $16 billion.

 

“The Middle East commercial aviation market is on a growth trajectory, supported by strong demand for air travel, from both full-service airlines and low-cost carriers entering the market,” said André Martins, Oliver Wyman’s Head of the Transportation, Services, and Operations Practices for India, the Middle East, and Africa. 

 

“As the report highlights, the region’s fleet expansion will be driven primarily by the addition of narrowbodies that will cater to the growth in domestic and shorter-haul flights. In a region where widebodies have long dominated, narrowbodies will climb from 43% to 47% of the regional fleet over the decade.

 

“There is a significant opportunity for different countries in the Middle East to capture the large market potential across the entire value chain, while simultaneously enhancing the productivity and efficiency of operations. It will be imperative that there is close collaboration across the entire sector and strong investment in the expansion of local capabilities, including MRO services. By leveraging global insights and best practices, the aviation sector can adapt their strategies to address local challenges while driving substantial improvements,” he added.

 

Key findings from the report for Middle East include:

* Demand versus production: Air travel demand is soaring, with the number of passengers worldwide hitting an all-time high of close to 4.9 billion in 2024 and heading to well over five billion this year. Global revenue passenger kilometers (RPK), a measure of passenger traffic calculated by multiplying the number of paying passengers by the distance traveled, are up nearly 4% from 2019. Yet, despite the demand, aircraft production is not able to keep up with airline needs, with a record 17,000 unfilled aircraft orders projected through the next 10 years. At current rates of production, this order backlog is expected to take 14 years to clear – twice as long as airlines had to wait prior to 2019.

 

* Emerging markets: Over the next decade, the regional composition of the global fleet is expected to shift, with China, the Middle East, and India capturing a larger share. North America’s fleet will grow at a modest 1.3% CAGR, while India and the Middle East will see significant CAGR gains at 8.5% and 5.1%, respectively.

 

* The Middle East will see strong growth amid intense aviation competition: The Middle East’s aviation market is benefiting from significant aircraft orders and growing demand for air travel. Saudi Arabia and the UAE are leaders of this growth, representing just over 60% of the market, with carriers in each serving the market differently. In Saudi Arabia, domestic flying makes up 45% of seats whereas UAE air travel is solely based on international traffic.

 

* Production challenges: Every year since 2018, when the global aerospace industry set an all-time high production record, the sector has failed to manufacture enough aircraft to satisfy demand. In 2024, the industry produced just over 1,300 aircraft, close to 30% below 2018’s peak of over 1,800 aircraft. In 2025, it is expected to repeat that level of production. This number is expected to rise to about 2,200 in 2029, and just above 2,400 by 2035. By 2029, production is projected to rise to about 2,200. It is expected to top 2,400 by 2035.

 

* Future fleet projections: The global fleet is projected to exceed 38,300 aircraft by 2035, with production challenges prompting airlines to delay retiring older planes, pushing up the average age of the fleet. Narrowbody aircraft will continue to dominate the future fleet, with the share increasing from 62% to 68% by 2035. North America will continue to remain the largest market, but emerging regions like China, India, and the Middle East are expected to capture a larger share, highlighting the shifting dynamics in the global aviation sector.

 

* MRO super cycle: The MRO (maintenance, repair, and overhaul) sector is set to hit $119 billion this year, 12% higher than the previous record set in 2019. The increase is driven by the maintenance of aging fleets and higher utilization rates. The Middle East will continue to see its global MRO market share increase, driven by a large order book, and the region will gain 25% in market size by the end of the forecast period. - TradeArabia News Service

Abu Dhabi-based Edge Group, a leading advanced technology and defence group, has announced that its key entities Powertech has secured its first order for the P145i combustion engine from Adasi, marking a significant milestone in its strategy to become a globally competitive original equipment manufacturer (OEM) of high-performance propulsion systems for defence and civil aerospace applications.

 

The deal follows the engine’s official debut at International Defence Exhibition and Conference (IDEX 2025) in Abu Dhabi.

 

As per the deal, Powertech will supply Adasi with its advanced six-cylinder fuel-injection engine, designed to enhance the efficiency and performance of unmanned aerial vehicles (UAVs) and light aircraft.

 

Engineered for superior reliability, fuel efficiency, and seamless integration with advanced aerial platforms, the P145i performs across diverse environmental conditions. 

 

Meanwhile, its lightweight design ensures greater operational flexibility, making it ideal for autonomous aerial platforms, it stated.

 

This agreement marks a pivotal step in Powertech’s long-term vision to establish its position as a global leader in reliable, purpose-built propulsion systems and solutions, designed to address the growing demand for advanced aero engines and support the accelerated advancement across the UAV and aerospace propulsion sectors.

 

Julien Fabreguette, Senior Vice President of Industrial Strategy & Partnerships – Platforms & Systems, Edge, said: "This landmark order is a defining moment for Powertech and a testament to the strength of cross-complementary synergies within Edge Group. The P145i embodies our engineering excellence, offering a powerful and fuel-efficient solution for UAVs and advanced aerial platforms."

 

"We are proud to support Adasi with cutting-Edge propulsion solutions that enhance its aerial capabilities and support its portfolio of autonomous systems," he added.

 

Adasi CEO Juma Al Kaabi said: "As a regional leader in autonomous systems, Adasi is committed to equipping its platforms with the most advanced technologies to meet the evolving demands of modern defence operations."

 

"Integrating Powertech’s P145i engine into our platforms aligns with our mission to deliver superior UAV capabilities, ensuring enhanced performance, efficiency, and operational reliability. This partnership reinforces our commitment to offering our customers state-of-the-art solutions that ensure mission success," he added.-TradeArabia News Service

SAL Saudi Logistics Services Company has announced that it has signed an agreement with Sela Company to launch a new logistics zone at an investment of SAR4 billion ($1.1 billion) within the Falcons City project north of Riyadh.  

 

Spanning over 1.5 million sq m area, the facility will feature high-quality, Category A warehouses and storage spaces designed to meet diverse requirements, said a statement from SAL Saudi Logistics Services Company.

 

The initiative aligns with their joint efforts to enhance strategic partnerships, support the logistics sector, and boost the kingdom’s position as a global logistics hub in line with Saudi Vision 2030 and the National Transport and Logistics Strategy, it stated.

 

The agreement was signed by SAL CEO Omar bin Talal Hariri and Sela Managing Director Rakan Al Harthy at a key ceremony held in the presence of Minister of Investment Khalid Al Falih and Minister of Transport and Logistic Services Saleh Al Jasser.

 

It was also attended by General Authority of Civil Aviation President Abdulaziz Al Duailej, Saudi Falcons Club CEO Talal bin Abdulaziz Al Shamaisi, and several other senior officials, investors, and business leaders.

 

Falcon City, for which the agreement was inked, enhances the appeal of the Malham area north of Riyadh. Home to the Saudi Falcons Club, one of the region’s most prominent cultural and heritage landmarks, the area has contributed to tourism and cultural activities through its programs, events, and international initiatives. 

 

This integration of economic projects with heritage activities attracts visitors and investors while reinforcing the area’s status as a comprehensive destination that blends a modern economy with the preservation of Saudi Arabia’s cultural heritage, it stated.

 

On the new logistics zone, Hariri said it will significantly enhance the company’s capabilities due to its strategic location near King Khalid International Airport, major highways, and rail networks connecting various regions of the kingdom. 

 

"This will solidify its position as a comprehensive hub for shipping and distribution operations, further supporting Saudi Arabia’s role as a key global trade center," he noted.

 

According to him, the SAR4-billion investment in developing a model logistics zone aligns with SAL’s strategic plan to enhance its leadership as a national logistics provider that adheres to the highest global standards. 

 

"The key facility will boast high-quality Category A warehouses and storage spaces for diverse requirements," he stated.

 

Falcons City represents an advanced model of integrated cities, spanning 14.4 million sq m in the Malham area north of Riyadh. Its strategic location ensures easy accessibility and includes key facilities such as the Riyadh Exhibition and Convention Center, a state-of-the-art logistics zone attracting major global companies, an aviation runway, and an aircraft maintenance area, all of which enhance air transport and cargo efficiency. 

 

The project also features economic, commercial, residential, hospitality, and entertainment zones, along with an outlet mall to meet the aspirations of investors, residents, and visitors, he added.-TradeArabia News Service