By: Abdullah Al Dereai & Frédéric Eucat - 5 minute read
Aviation in the GCC: Powering Growth, Connecting the World
As the world reopens and economic diversification speeds up, aviation in the GCC is now more than just a recovery story it's driving regional transformation and connecting the world like never before.
Overview
In 2025, the Gulf Cooperation Council (GCC) aviation sector is demonstrating a remarkable post-pandemic recovery, establishing itself as a pivotal global hub in connectivity, fleet expansion, and technological innovation. Strategic investments by state-backed carriers are boosting capacity, while regional airports are undergoing multi-billion-dollar upgrades, supporting air traffic volumes that have exceeded pre-COVID benchmarks. Driven by proactive government initiatives, shifting traveler preferences, and broad economic diversification efforts, the GCC is positioned to become a major center not only for passenger travel but also for maintenance, repair, overhaul (MRO), cargo logistics, and aerospace innovation, signaling a transformative decade ahead.
Current Economic Landscape
In 2025, GCC passenger traffic has not only rebounded but exceeded pre-pandemic levels, indicating a strong recovery in regional and international air travel. GCC airports are expected to handle over 240 million passengers, a 6% increase over 2019, despite ongoing global industry normalization efforts. This growth is driven by rising leisure and business travel, airline expansions, and eased travel restrictions.
Dubai International Airport (DXB) is projected to surpass 90 million passengers, reaffirming its status as the world’s busiest international hub. Its recovery strategy, Emirates’ route reinstatements, and role as a transit hub have bolstered its dominance. Other key airports Doha, Riyadh, Jeddah, Abu Dhabi, and Muscat—have reported double-digit growth, supported by fleet expansions and infrastructure investments.
Overall, the GCC’s rapid recovery underscores its strategic use of aviation for economic growth, tourism, and global connectivity, positioning Gulf carriers and airports as leaders as the industry advances.
Fleet Expansion: GCC Carriers have resumed & accelerated fleet modernization programs.
In 2025, GCC airlines are executing one of the most ambitious fleet modernization cycles in global aviation history, with total committed expenditures exceeding USD 176 billion. Leading the region is Qatar Airways, with a landmark USD 96 billion wide-body aircraft order in progress, reflecting its strategy to dominate long-haul routes and capacity through the next decade.
Emirates follows with a confirmed USD 52 billion investment focused on integrating A350s, B787s, and 777X aircraft into its already expansive fleet. Etihad Airways has committed USD 14.5 billion, supporting its plan to double its fleet size by 2030, while Saudia continues its transformation with an estimated USD 10 billion in aircraft acquisitions aligned with Saudi Vision 2030.
Gulf Air, though smaller in scale, has made a significant USD 4.6 billioncommitment to its long-haul operations via new Boeing 787 orders.
This wave of capital expenditure underscores the region’s coordinated effort to position its carriers as global leaders in connectivity, sustainability, and passenger experience. It also reflects strong government support and strategic alignment with national economic diversification agendas across the Gulf.
Key Drivers of Growth
National Vision Programs
National Vision Programs
National Vision Programs
Vision 2030 in Saudi Arabia, the UAE's D33 agenda, and Qatar's National Vision 2030 all leverage aviation as a key driver for economic diversification, tourism, and logistics growth. For example, Saudi Arabia's Riyadh Air, launched in 2023, plans to connect over 100 global destinations by 2030, creating a new competitive force in international aviation.
Tourism and Transit Hubs
National Vision Programs
National Vision Programs
GCC countries are targeting to host more than 150 million tourists annually by the year 2030, with the aviation sector playing a crucial role as the primary facilitator of this goal. The legacy of Dubai Expo has significantly contributed to tourism infrastructure development, while Qatar's post-World Cup infrastructure investments are enhancing its appeal.
Digital Transformation
National Vision Programs
Digital Transformation
GCC airports are increasingly integrating cutting-edge technologies to enhance operational efficiency and passenger experience. These innovations include biometrics for streamlined security and identification processes, AI-enhanced baggage handling systems that improve accuracy and reduce delays, and autonomous vehicles.
Forecast: 2025–2030 Strategic Outlook
The Rise of MRO: Building a Self-Sustaining Aviation Ecosystem
As GCC carriers increase fleet operations, the regional Maintenance, Repair, and Overhaul (MRO) sector is emerging as a critical component of aviation growth and strategic localization. Valued at approximately USD 7.2 billion in 2025, the GCC’s MRO market is projected to surpass USD 10.5 billion by 2027, propelled by a rise in new-generation aircraft, national aviation strategies, and a focus on long-term cost efficiencies. Significant investments are underway in the region, with countries such as Saudi Arabia and the UAE developing purpose-built MRO facilities, including the Saudia Aerospace Engineering Industries (SAEI) complex in Jeddah and Dubai South’s Aviation District.
These centers aim to reduce reliance on overseas providers, enhance turnaround times, and meet increasing demand for airframe, engine, and component maintenance across diverse aircraft types. Furthermore, the expansion of the MRO sector aligns with regional workforce development initiatives, creating thousands of highly skilled technical jobs and positioning the GCC as a competitive alternative to established MRO hubs in Europe and Southeast Asia. With rising aircraft utilization and advancing local capabilities, the GCC is not only expanding its fleet but also establishing a resilient, integrated aviation ecosystem with long-term economic benefits.
Summary
As the GCC aviation sector enters a pivotal phase in 2025, this study emphasizes a region that is not just recovering from disruption but actively reshaping its global aviation footprint. With over USD 176 billion in cumulative fleet investments, GCC carriers such as Emirates (USD 52B), Qatar Airways (USD 96B), and Etihad Airways (USD 14.5B) are undertaking some of the largest commercial aircraft procurement programs worldwide, positioning the region at the forefront of long-haul and transit aviation. These investments support a projected fleet of over 1,200 aircraft by 2030, bolstering expanded networks that already serve more than 240 million passengers annually a 6% increase compared to 2019 pre-pandemic figures. Dubai International Airport (DXB) alone is expected to surpass 90 million passengers in 2025, reclaiming its status as the world’s busiest international hub. Meanwhile, governments are investing capital into airport megaprojects such as Saudi Arabia’s USD 147B aviation strategy and Riyadh’s upcoming King Salman International Airport to meet future demand and achieve tourism goals under Vision 2030.
At the same time, strategic growth is driven by digital innovation, sustainable fleet upgrades (A350, 787, 777X), and rising investment in MRO services, projected to exceed USD 10.5 billion by 2027. Aviation now accounts for over 4% of the GCC’s GDP, supporting more than 2.3 million direct and indirect jobs, and helping diversify economies beyond hydrocarbons. Whether measured by passenger numbers, aircraft orders, or capital investment, the GCC is transforming itself from a merely regional transit hub into an aviation powerhouse smarter, greener, and crucial to the economy for many decades ahead.
Team Members
Frédéric Eucat
Frédéric Eucat
Frédéric Eucat