Qatar & GCC Shine But Middle Eastern Aviation Grows Unevenly
Qatar, the UAE, and Saudi Arabia are home to some of the world’s best airports and airlines, with strong fleets and solid government backing. But not every country in the Middle East is flying high.
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According to Kamil Alawadhi, IATA’s regional vice-president for Africa and the Middle East, aviation in the region is developing unevenly. He highlighted that while Gulf countries are investing heavily in aviation, lower-income countries like Yemen, Lebanon, and Syria are falling behind.
“The region contains some of the world’s richest and poorest countries, with stark gaps in aviation capacity and investment,” Alawadhi said during a media event at IATA’s Annual General Meeting in New Delhi.
Conflict Zones and Airspace Closures Take a Toll
Ongoing conflicts in countries such as Yemen, Syria, Iraq, and Lebanon have severely disrupted aviation operations. Prolonged airspace closures have made it harder for airlines to operate efficiently, often forcing reroutes around Iranian and Syrian airspace. This leads to longer flight times, more fuel use, and increased emissions.
These conflict-driven challenges are damaging infrastructure, eroding investor confidence, and making it harder for airlines to access vital markets.
Alawadhi pointed out that reduced connectivity especially hurts countries that could benefit most from better air links. “A coordinated regional approach is essential to narrow the gap,” he stressed.
Sanctions and Outdated Fleets Hold Some Countries Back
Beyond the impact of war, some nations face sanctions that limit their access to aircraft, spare parts, and funding. This isolates their carriers from the global aviation system and makes it harder to maintain safety standards or grow.
While aviation has shown resilience despite the turmoil, Alawadhi said its full potential can only be reached in stable, peaceful environments that are open to international cooperation.
Middle East Air Travel Is Growing Steadily
Despite the uneven progress, the Middle East’s aviation sector is showing positive signs. From January to April this year, demand for air travel was up 6% on par with the global average. However, cargo traffic in the region dipped by 5.3% during the same period.
Looking ahead, IATA forecasts that the number of passengers in the Middle East will double by 2043, reaching 530 million. That’s an average annual growth rate of 3.9% from 2023 to 2043.
Blocked Funds Remain a Big Hurdle
Another major issue airlines face is blocked funds, money that can’t be moved out of countries due to currency and regulatory restrictions. As of April, there’s $1.28 billion in blocked airline funds globally. A staggering 85% of that or about $1.1 billion is stuck in Africa and the Middle East. Of that, $919 million is tied up in African countries alone.
Although countries like Nigeria, Egypt, and Ethiopia have made progress, others, including Mozambique, Lebanon, and several in Central Africa, continue to hold back large amounts of airline cash.
Alawadhi emphasized how damaging this is for the industry. “When airlines are unable to repatriate their funds, it severely impedes their operations and limits the number of markets they can serve,” he said.
Blocked funds not only hurt airlines but also hurt entire economies by limiting air connectivity, which in turn weakens a country’s appeal to investors and travelers.
Governments Urged to Prioritise Aviation
To unlock the region’s full aviation potential, Alawadhi urged governments to prioritise aviation when allocating foreign exchange. “Air connectivity is a vital economic catalyst,” he said.
Better connectivity boosts trade, tourism, investment, and job creation and helps build a more stable and prosperous future for the entire region.