
New analysis from Frost & Sullivan, Middle East Aviation Market, finds that the aviation market in the Middle East region generated 460,000 jobs and 17.5 billion. It is estimated that for every $100 spent on air transport, the regional economy benefits by $325. "There is a high positive correlation between air travel and the level of economic activity in the region since GDP would relate to consumer spending and hence positively impact the demand for air services," said Frost & Sullivan Financial Analyst R. Madusudanan. "Thus, a GDP growth in the Middle East will ensure that the region's aerospace sector would outpace the rest of the world." Apart from this , the strategic geographical positioning of the Middle East has proved to be highly advantageous. It lies in the centre of the world, equidistant from Asia Pacific and North America , attracting a large portion of transit traffic in the years to come. Development has taken place in small catchment areas and most of them overlap, leaving large regional pockets uncovered by the sector. "Regional regulations do not promote adequate financial and operational transparency, which is a hindrance for attracting private investment," added Madusudanan. "If the respective authorities do not address the issues relating to deregulation and privatisation, the aviation sector could be a facing a key restraint."
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