Qatar, GCC Have World-Class Hub Airports, But Region's Aviation Developing 'Unevenly': Alawadhi

(MENAFN- Gulf Times) Qatar and other GCC countries, mainly the UAE and Saudi Arabia, have world-class hubs (airports) and fleets with strong government-backing, noted IATA regional vice-president Kamil Alawadhi.
“Aviation in the Middle East is not developing evenly. The region contains some of the world's richest and poorest countries, with stark gaps in aviation capacity and investment,” Alawadhi said referring to lower-income countries like Yemen, Lebanon, and Syria that face declining infrastructure, underfunded civil aviation authorities, and outdated fleets.
“A coordinated regional approach is essential to narrow the gap,” Alawadhi said at a recent media event on the sidelines of IATA's Annual General Meeting in New Delhi.
Ongoing conflicts in Yemen, Syria, Iraq and Lebanon have resulted in prolonged airspace closures and significant disruption to flight operations.
These conditions have weakened aviation infrastructure, eroded investor confidence, and limited access to critical markets, he said.
Overflight restrictions, particularly around Iranian and Syrian airspace, have forced airlines to reroute - raising fuel consumption, increasing emissions, and extending flight times.
Conflict zones also hinder intra-regional connectivity, slowing economic integration and impeding the mobility of people and goods; especially in countries that would benefit most from enhanced air access.
Sanctions limit access to aircraft, parts, and finance, isolating some carriers from the global aviation system and hindering safety and growth.
“While aviation has shown remarkable resilience amid political uncertainty, its full potential is unlocked in environments that are stable, peaceful, and open to international engagement,” Alawadhi said.
Year-to-date (YTD) demand for Middle East, which compares January to April this year with January to April 2024, was up 6% in line with global average.
Again, the YTD cargo performance for the Middle East region reflects some challenges and was down 5.3% during the period under review, he noted.
According to Alawadhi, Middle East passenger numbers will double, reaching 530mn in 2043.
Traffic will grow at an average annual rate of 3.9% over the 2023 – 2043 period, he said.
Blocked funds remain a challenge in the region, Alawadhi said and noted the Africa and Middle East (AME) region accounted for 85% of blocked funds (globally).
As of April, globally, there is a total $1.28bn in blocked funds.
Of this, 85% is blocked in Africa and Middle East for a total of $1.1bn, and out of that, $919mn is tied up in African countries.
“Significant improvements have been made in Nigeria, Egypt and Ethiopia over the last year, with Nigeria no longer on the list of blocked funds countries. However countries in AME continue to top the blocked funds list. Mozambique is currently withholding the largest amount of blocked funds globally, followed by the XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo (Congo-Brazzaville), Equatorial Guinea, Gabon) and Algeria and Lebanon,” he noted.
Alawadhi emphasised cash flow is key for airlines' business sustainability - when airlines are unable to repatriate their funds, it severely impedes their operations and limits the number of markets they can serve.
Reduced air connectivity hampers countries' competitiveness, diminishes investor confidence and labels countries as a high-risk place to do business.
Strong connectivity is an economic enabler and generates considerable economic and social benefits.
“We call on governments to prioritise aviation in the access to foreign exchange on the basis that air connectivity is a vital key economic catalyst for the country,” Alawadhi added.

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