The Middle East & North Africa Business Aviation Association 2022 show will take place on December 6-8 at DWC in Dubai. Photo: Mebaa
The Middle East & North Africa Business Aviation Association 2022 show will take place on December 6-8 at DWC in Dubai. Photo: Mebaa
The Middle East & North Africa Business Aviation Association 2022 show will take place on December 6-8 at DWC in Dubai. Photo: Mebaa
The Middle East & North Africa Business Aviation Association 2022 show will take place on December 6-8 at DWC in Dubai. Photo: Mebaa

Private jet travel demand soaring despite recession fears, trade chief says


Deena Kamel
  • English
  • Arabic

Demand for private jet charter flights in the Middle East and Africa will continue to grow beyond mega events such as Expo 2020 and the Qatar World Cup, despite global economic headwinds, the head of the industry association has said.

The Middle East's private aviation sector has grown 25 to 27 per cent year-on-year in 2022 in terms of aircraft movements, Ali Ahmed Alnaqbi, executive chairman of Mebaa — the Middle East & North Africa Business Aviation Association — said in an online media briefing on Monday.

First and business class travellers who shifted to private travel during the Covid-19 pandemic have continued to take chartered flights rather than revert to scheduled airlines, he said.

Mega events such as the Dubai Expo and the World Cup matches in Doha, as well as an increase in the number of requests for aircraft registration in the UAE, have contributed to the sector's growth, he added.

“We started to see a good level of activity in business aviation whether it's movement of aircraft, the aircraft size [or] aircraft numbers … Definitely, the Middle East and North Africa market is growing,” Mr Alnaqbi said.

“The Dubai market is really growing and leading business aviation in Middle East and North Africa. Dubai Expo and now the Fifa [World Cup] in Qatar had an impact on the business aviation market but that impact is momentary and what we're looking for is the continuation of healthy growth throughout the coming years. That is happening and we can see it in many areas.”

Mr Alnaqbi's comments came ahead of the ninth Mebaa show which is scheduled to take place in Dubai next week, where business aviation executives will gather to discuss industry trends and exhibit new aircraft. The show will take place at the emirate's second hub DWC at the Dubai Airshow site on December 6-8.

While the business aviation industry is facing new aircraft delivery delays due to supply chain snarls and labour shortages, the market for second-hand aircraft is picking up, Mr Alnaqbi said.

“The impact is there on new aircraft but the second-hand market is peaking at the same time, so the net effect is almost the same,” he said.

Bringing the aircraft buyers and manufacturers together through platforms such as the Mebaa show “will pave the road for future growth”, he predicted.

Sustainability concerns

Sustainability will be at the forefront of the discussions at the Mebaa show this year as the aviation industry takes steps towards its target of net-zero emissions by 2050, amid growing pressure from climate change activists.

Global companies involved in the production of sustainable aviation fuel (SAF), touted as a short-term solution to reducing airlines' carbon footprint, are scheduled to meet local fuel producers to “see the best way from the business aviation perspective” for SAF usage, Mr Alnaqbi said.

Mebaa is also in discussion with the UAE's aviation regulator, the General Civil Aviation Authority, to speak with local fuel producers about SAF production and usage, he added.

The global aviation industry accounts for about 4 per cent of global emissions at present, of which business aviation contributes under 1 per cent, according to Mr Alnaqbi.

“From the business aviation industry, no matter how much work you do to help raise the economy or build up countries, you will still face criticism and we accept it,” he said. “We have to accept it and continue doing our business.”

The aviation industry is valuable in transporting people to conduct business, travel home or meet family and friends in the safest and quickest way possible, so “we are there for a good cause and a good reason”, he said.

“You cannot [write off] the aviation industry.”

About 8,500 visitors are expected at the Mebaa show, which has returned after a hiatus due to the Covid-19 pandemic, according to Tim Hawes, managing director of Tarsus Group which is organising the event.

Approximately 95 countries are represented at the show, from South America, Africa, India, Pakistan and Europe, he told reporters.

“The preregistration for international visitors to the show is the highest we've had in the history of the show, so we're seeing a lot of focus from outside looking into the GCC,” Mr Hawes said.

The show has recorded a 10 per cent increase in exhibitors and 38 per cent of them will be coming from countries new to the Mebaa show, he said.

The Mebaa show will feature the BizAv Talks conference, including 20 sessions with 45 global experts discussing trends shaping the industry, from pressing sustainability concerns to the latest aircraft technologies.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4-litre%20flat-six%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E525hp%20(GT3)%2C%20500hp%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E465Nm%20(GT3)%2C%20450Nm%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh944%2C000%20(GT3)%2C%20Dh581%2C700%20(GT4)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Updated: November 29, 2022, 3:30 AM