Boeing Co. predicts that countries in the Middle East would need 2,340 new airplanes worth $390 billion in the next 20 years to meet growing demand.
"The Middle East continues to outperform the world in air travel growth. The Middle East was the only region that saw an increase in international traffic in 2009, posting an 11.2% growth rate", Boeing added.
Boeing noted that the environment for aircraft financing had improved from last year, with various sources available, including funding through commercial banks, export credit agencies, and private equity. "There is no talk of a gap in terms of required funding and new planes continue to deliver on time with less difficultly than last year," John Matthews, Managing Director for the Middle East and Africa at Boeing Capital Corp., Boeing's customer financing unit.
Islamic financing was playing an increasingly prominent role in aircraft funding since last year's pioneering sukuk deal for aircraft "in which about $500 million worth of Islamic bonds, secured by 16 airplanes, were issued", it concluded.