High-net-worth individuals and new crypto millionaires in the UAE are fueling demand for private charter jets, according to industry executives.
"There is a distinct segment of the market. We interact with many young crypto millionaires. Additionally, the UAE serves as an excellent hub for startups and a prime location for entrepreneurs," Shafiul Syed, CEO of Royal Jet, told Khaleej Times during the Mebaa 2024 exhibition at Dubai World Central.
"Over the past few years, we have observed a rise in the number of high-net-worth individuals, not only in Dubai but also in India. We are seeing more younger private jet users, including young crypto millionaires. Our clientele includes a diverse mix from the GCC and IMEA regions, spanning various sectors such as sports, corporates, royal families, government, and high-net-worth individuals," said Claudia Krajhanzl, vice-president for passengers for IMEA at Chapman Freeborn Aviation Services.
Bitcoin recently surpassed the $100,000 mark for the first time, reaching an all-time high of $103,992.99, transforming many young UAE crypto investors into millionaires.
The UAE boasts the highest rate of crypto ownership globally, with nearly 30% of residents owning cryptocurrency, according to data from Voronoi, citing Trip-A. This is followed by Vietnam, the US, Iran, the Philippines, Brazil, Saudi Arabia, Singapore, and Ukraine.
The UAE has also experienced a significant influx of millionaires over the past four years. The Henley and Partners’ Private Wealth Migration Report 2024, released in June, predicts that the UAE will attract over 6,700 millionaires this year—more than any other country. Ranked 14th globally, the UAE is home to 116,500 millionaires, 308 centimillionaires, and 20 billionaires, as per Henley and Partners.
The country is projected to add nearly 6,000 millionaires annually over the next five years, driven by its growing appeal to high-net-worth individuals worldwide, according to the Global Wealth Report by Swiss bank UBS in 2024.
Demand for private charter jets is coming from various sectors, including governments, corporations, and families, according to Syed.
"Post-Covid-19, demand was exceptionally strong. However, this year has been steadier with a healthy single-digit average growth rate. While America is growing slowly, Europe saw a slight decline last year, but the Middle East is expanding. Given the geopolitical landscape, the UAE’s strong ties with multiple countries make it a unique hub for travel," he added.
Paul James, director of sales/aircraft management at DC Aviation, noted increased activity in the region for aircraft management.
"There are numerous pre-owned aircraft entering the region. It’s a busy period for management firms. In the UAE, private jet owners include corporate businesspeople from India, Pakistan, and the Arab world. Following Covid-19, there has been a significant influx of high-net-worth individuals relocating to the UAE, with many basing their aircraft here," said James.
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