Future of Business Jets Growth within the Middle East

Stephen Jones General Manager Al Bateen Executive Airport, Sir Banyas & Delma Island Airports. Abu Dhabi, United Arab Emirates.

www.albateenairport.com

Future of Business Jets - Growth within the Middle East

Areas Of Discussion Introduction Characteristics of the Market The Middle East Fleet 2001 2010 Growth Drivers and Constraints

Risks and Opportunities

The Grey Market

Other considerations

Future of Business Jets - Growth within the Middle East

Introduction Steve Jones - General Manager Al Bateen Executive Airport, Sir Banyas Airport and Delma Airport. Previous experience in aviation Hawker Siddely Aviation - Quality Management British Aerospace - Civil and Military Programmes. Signature/BBA Aviation - MRO, Aircraft Sales. London Oxford Airport - Airport and FBO. Abu Dhabi Airports Company - Airports.

35 Years Plus Experience in Aviation

Al Bateen Executive Airport is one of five airports operated and managed by Abu Dhabi Airports Company

International airport serving major cities

Regional, low cost and cargo operations

Exclusive airport for Business Aviation

Scheduled domestic services

Scheduled domestic services

Al Bateen Executive Airport perfectly positioned in the heart of the city of Abu Dhabi to cater to future growth in business aviation

Target audience
High Net Worth Individuals Royal Family Government Corporate Special Event eg Grand Prix Medivac Tech/Fuel Stop Crew OEMs/MROs The surrounding residential community

Future of Business Jets - Growth within the Middle East

Characteristics Of The Market
Middle East business aviation activity is worth USD 800M. Saudi Arabia accounts for 42% of this market. The current business aviation fleet in Saudi is 23% larger than it was ten years ago. It is forecast that the Middle East will receive 450 new business jets deliveries 2010 2019. (1) The regions business aviation fleet will grow at a compounded annual rate of approximately 8%. (1) Business jet fleet is heavily biased towards heavy types.
(1) Bombardier Market Forecast 2010 - 2019

Middle East Business Jet Fleet 2001 -2010

Middle Business Jet Growth 2001 - 2010

Total Yemen Syria Saudi Arabia Oman Iraq Kuwait Jordan Bahrain Lebanon UAE Qatar 2% 4% 6% 8% 10% 12% 14% 16% 18%

8% 2% 4% 4%

42% mkt share makes Saudi Arabia the most significant Business Jet area in the Middle East

4% 9% 10%
16% 18% 18%
20%

CAGR % 2001 - 2010

The UAE represents 31% of the total market and coupled with Qatar has shown the most aggressive growth +18% (CAGR 2001 2010) & actual growth of over +300% when comparing 2010 to 2001

Future of Business Jets - Growth within the Middle East

Aircrafts over 40,000lbs represent 68% of the Middle East Fleet.

Traffic Profile and Forecast

Commercial Movements Forecast 2010-2014 Al Bateen Executive Airport
14,000
12,738

12,000 10,871 10,000 7,925 9,784

11,919

8,000

6,000

5,872

4,000

2,000

2009 2010 2011 2012 2013 2014

2010 movements + 35% vs. 2009

Future of Business Jets - Growth within the Middle East

Growth Drivers & Constraints Growth Drivers Underlying strength of key markets of Saudi Arabia and UAE.
Saudi economy expected to grow at an average rate of 6.1% 2010 - 2015 Saudi has 18.9% and UAE 7% of Proven World Oil Reserves
(3) (2)

Major business aviation developments at many of the regions airports, (e.g. King

Khalid International Riyadh, Dubai World Central, Al Bateen Executive Airport).

A maturing more professional business aviation environment.

Effective competition Internationally recognised Charter/MRO/FBO organisations working alongside local

partners. The emergence of partnering or linkages between scheduled carriers and business aviation operations. Maturing and co-ordinated regulatory environment. (more difficult to operate in the grey market).

Future of Business Jets - Growth within the Middle East

Risks and opportunities

World Economy
Political Developments Culture understanding and barriers for entry. Availability of skills Climate Airport Capacity and facilities.

Future of Business Jets - Growth within the Middle East

The Grey Market
Maturing and increasingly co-ordinated regulatory environment is beginning to have an impact on Grey Market operations. Each country in the Middle East has its own set of regulations but most are based on EASA standards. Operating in the grey market is universally accepted as illegal. Greater co- ordination between regulators through vehicles such as: COSAP-GS (ICAO Co operative development of Operational Safety and Continuing Airworthiness Programme.) GCC Aviations Safety and Standards Committee. MEASRM (Middle East Aviation Safety Road Map initiative). (All these programmes are leading towards greater standardisation of regulations )

Better Monitoring by Regulators.

Ramp checks Targeted checks based on risk matrix Use of watch lists to see if operators have been reported violating rules else where. Whistle blowing

Future of Business Jets - Growth within the Middle East

Other Considerations A bridge between Western and Eastern markets.

The City Of Abu Dhabi

Located in the heart of the Middle East, Abu Dhabi is a global and strategic hub for commerce and travel Abu Dhabi, capital of the United Arab Emirates, is one of the richest cities in the world with over 7% of all known oil reserves Over US$500 billion invested in projects that are already in development US$1 trillion sovereign wealth fund Al Bateen Executive Airport addresses the need for a high quality business aviation facility in a prosperous city

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Destination Abu Dhabi MICE activity in Abu Dhabi is growing

Abu Dhabi National Exhibition Centre (ADNEC) is the regions largest conference facility Hosting some of the worlds largest international events including: International Defence Exhibition (45,000 delegates) World Future Energy Summit (15,000 delegates)

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Destination Abu Dhabi More things in Abu Dhabi to do

City tour by helicopter

Sheikh Zayed Grand Mosque

Emirates Palace

Dhow Cruise

Big Bus tour Abu Dhabi

Abu Dhabi Grand Prix

Mubadala Tennis Championship

Golf Championship

FIFA Club World Cup

UFC

Volvo World Yacht Race

Qasr Al Sarab Desert Resort

Yas Arena Concerts

Abu Dhabi National Exhibition Centre

Beats on the Beach Abu Dhabi

Kayaking in Abu Dhabi Mangroves

Hot Air Ballooning Liwa Desert

Wildlife Park Sir Bani Yas Island

Dune Bashing Liwa Desert

Yellow boat ride Abu Dhabi coast

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Destination Abu Dhabi Construction projects now @ US$562billion

Amid the economic slowdown in 2010, the construction industry in Abu Dhabi witnessed fresh contracts awarded valued at $35.5 billion 66% of the total value of all contracts awarded in the UAE for 2010 are in Abu Dhabi The expected value of construction contracts in Abu Dhabi to be awarded in 2011 will reach $39.8billion, an increase of 12% from 2010

The total value of all construction projects in Abu Dhabi is currently calculated at $562.8billion

Paris Sorbonne University Abu Dhabi

Reem Island

Sowwah Island

Source: www.constructionweekonline.com. Figures published by consultancy firm Ventures Middle East LLC

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Destination Abu Dhabi - Projects to be delivered in next few years

Zayed National Museum

Masdar City - The Worlds First Green City

The Louvre Abu Dhabi

The Guggenheim Museum Abu Dhabi

Abu Dhabi Performing Arts Centre

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Destination Abu Dhabi - Projects to be delivered in next few years

Al Raha Beach

Al Gurm Resort

Sowwah Island

Reem Island

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Thank You Any Questions?