(MENAFN- Khaleej Times) Â The market for maintenance, repair and overhaul, or MRO services, in the Middle East is expected to reach a market value of $11.2 billion by 2019, sustaining a compound annual growth rate of 5.3 per cent, according to a study by Aero Strategy-OAG Aviation.
Moreover, the global civil aviation MRO supply chain was estimated to be worth $65 billion in 2012, with the Middle East and Africa and Asia-Pacific regions collectively accounting for 32 per cent of the market.
Furthermore, the region's share of the global civil aviation fleet of around 79,800 aircraft had reached 21 per cent in 2012 and analysts expect this to double by 2020. The UAE, on the other hand, accounts for more than half of the GCC's fleet in light of the aggressive expansion drive of the country's aviation sector.
"The UAE owns more than 45 per cent of the GCC fleet. The MRO facilities in the region are therefore expected to reach capacity very soon and we need to be ready to meet the increasing demand," said Rashed Bu Qara'a, chief operating officer of Dubai Aviation City Corporation.
The planned Aviation District at Dubai World Central, or DWC, the world's first purpose-built aerotropolis, is designed to be the home of the world's leading MROs looking to benefit from the rapid growth of the industry in the MEA region. DWC's strategic location in Dubai enables MROs to reach out to a much wider market base, including the Asia-Pacific region. At the moment, the UAE has two major MROs and have a capacity of 13 wide-body hangars for aircraft maintenance, covering the full MRO supply chain including heavy airframe maintenance, engine overhaul, component maintenance and line maintenance. With its integrated aviation cluster, DWC creates a self-sustainable aviation ecosystem that will help attract the world's leading business aviation companies.
A delegation from DWC recently concluded a roadshow in the US that aimed to open discussions with key industry players and initiate the creation of an integrated MRO supply chain at DWC's Aviation District. The delegation signed an agreement with the North Texas District Export Council to facilitate MRO investments by US companies in DWC. The roadshow included high-level meetings with leading players in component overhaul, line maintenance, avionics overhaul, repair and OEM. The DWC delegation also initiated discussions to establish MROs for different purposes ranging from business jet and medical outfit to "built-to-suit" solutions.
"We are working with an eye on the future, in line with the vision of the government and DWC's mission. DWC is destined to be the future hub for business activities, especially with the increasing importance of aviation as a key component in the UAE's economic growth plan. We therefore need to develop the world's most attractive hub for key players in the MRO sector. We are confident that leading aerospace companies will find DWC the perfect location for their companies to take advantage of the growing demand for aviation services in the MEA and Asia regions," Bu Qara'a said.
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