Editor's note: Middle East Insights is a special feature series by China Media Group (CMG) Middle East station, offering a comprehensive analysis of pivotal regional issues spanning politics, economics, culture and other pertinent fields within the area. This is the third article in a series of observations on the development of the low-altitude economy in the Gulf region and cooperation between Chinese companies and the local partners.
With efforts in economic transformation and green development, the Gulf countries are demonstrating significant enthusiasm and ambition for advancing the low-altitude economy. The internal drive for economic transformation, national policy direction, the growing market demand, and robust economic power are key factors drawing low-altitude economy enterprises to the region.
As the industry expands across the Gulf, the market is poised to unlock substantial development potential.
Visitors watched the Matrix1 electric vertical take-off and landing aircraft of Yufeng Future at the 6th China International Import Expo in Shanghai, on November 7, 2023. /CFP
Opportunities and Challenges
According to a report released in January this year by the international market research firm CMR, the market size for eVTOL in the Middle East and North Africa was approximately $30 million in 2023 and it is projected to achieve a compound annual growth rate of 52.5% from 2023 to 2030.
Gao Yuanyang, Director of the General Aviation Industry Research Center at Beihang University, told CGTN that new aircraft such as eVTOL are essentially products of the integration of "traditional aviation, new energy, and artificial intelligence," and their development prospects are promising.
"Chinese low-altitude economy enterprises have significant advantages in aircraft development, low-altitude flight operations, and market expansion in Gulf countries. They are expected to make substantial progress in the region," Gao said.
EH216 series pilotless eVTOL is showcased at the Future Aviation Forum in Saudi Arabia in May./Ehang
However, the development of the low-altitude economy in the Gulf region faces several challenges. Currently, low-altitude aircraft have yet to achieve large-scale application, and there is significant room for improvement in legislative regulation, aviation safety, and infrastructure support.
The allocation of low-altitude airspace resources adds another layer of complexity, requiring companies to navigate local laws and obtain airworthiness certification for future large-scale operations.
Furthermore, the entry of low-altitude economy enterprises from Europe and the United States into the Middle East is intensifying regional market competition.
Will the industry copy the success of EV?
Regarding whether the low-altitude economy can replicate the success of domestic new energy vehicles, Gao expressed cautious optimism: "It is important to note that traditional automobiles have developed over more than a century and have a deep market foundation. Urban air mobility is a new type of urban transportation, and there is a process from experimental application to routine operation and then to large-scale commercial use."
"But we firmly believe that urban air mobility using eVTOLs, flying cars, and other new aircraft will bring revolutionary development to urban transportation methods and will undoubtedly create a huge industry," he said.
In November 2023, the 18th Dubai Airshow took place, Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed visits a Chinese company booths. / WAM
Ehang is a Chinese technology company which obtained the world's first type certificate for unmanned eVTOL from the Civil Aviation Administration of China in 2023. Its vice president He Tianxing expressed confidence from the perspective of businesses competing in this global innovation field.
"With the advancement of unmanned aerial vehicle technology and the continuous growth of global urban air mobility market demand, Chinese enterprises have established a first-mover advantage and leading applications in the global low-altitude economy development.”
"Under the 'Belt and Road' initiative, China's advanced technology industries have more opportunities for international development. Countries participating in the initiative are actively embracing new Chinese-made products and continuously promoting the integration of their own technology industries with Chinese technology, providing strong support for technology going international.”
Supervisor: Mu Li
Producer: Li Chao
Reporter: Wang Xuejing