Middle East aviation developing 'unevenly' amid economic inequality and geopolitical instability

The Middle East aviation industry is developing "unevenly" because of geopolitical instability and economic disparity between countries, as airlines grapple with airspace closures and sanctions, the regional boss of the International Air Transport Association (Iata) has said.

Kamil Alawadhi, Iata's vice president for Africa and the Middle East, pointed out that airlines in the region are grappling with airspace closures and sanctions.

Of the 67 countries in the Middle East and Africa that Iata works with, 21 are under some form of sanctions and 12 are conflict zones. That makes it difficult for airlines to operate and slows the progress of the regional aviation industry, Mr Alawadhi said.

Speaking to reporters in New Delhi on the sidelines of Iata's annual meeting, he pointed to “stark gaps” in capacity and investment between the Middle East's poorest and richest countries.

“Aviation in the Middle East is not developing evenly,” Mr Alawadhi said, pointing to conflicts that have closed airspace, disrupted operations and led to longer and costlier rerouting of flights. Countries under sanctions also face problems like blocked access to aircraft and parts which isolates their airlines.

Mr Alawadhi called on Middle East governments to take a “co-ordinated regional approach” to narrow the gap between the countries building world-class travel hubs and lower-income nations, such as Lebanon, Syria and Yemen, that have declining infrastructure, underfunded civil aviation authorities and outdated fleets.

Mr Alawadhi said the Middle East aviation industry's “no state left behind” approach can help unlock the region's full potential. He added that a number of Gulf countries' civil aviation agencies, over the past couple of months, have asked Iata and the UN aviation body, ICAO, to play a “pivotal role” in the development of the Syrian aviation industry.

It comes as the war-torn nation expects to become free from the shackles of debilitating US and EU sanctions, with an increasing number of regional airlines announcing plans to restore flights to Damascus.

Mr Alawadhi urged Middle East countries to create “pathways for a safe and structured return” for states, like Syria, into the regional aviation system. This means facilitating access to aircraft, financing, and international standards while prioritising safety.

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Syrian aviation 'boom'

Asked about the potential growth of Syria's aviation market in the medium to long term, Mr Alawadhi told The National that “if everything went well, it would boom”. However, Syrians are still facing visa restrictions, which will limit growth if they are unable to fly out to visit other countries, he added.

Additionally, heavy investment is required to overhaul Syria's aviation infrastructure in terms of airports, ground handling, regulations and airline capacity, Mr Alawadhi said.

Airlines face $1.3bn in blocked funds

The outstanding ticket sales revenue owed by governments to airlines around the world has dropped to $1.3 billion, which is 25 per cent below the $1.7 billion reported in October 2024, according to the latest data by Iata.

The Africa and Middle East region accounted for 85 per cent of that, amounting to $1.1 billion as of end April 2025. Of the $1.1 billion, the bulk is held by governments in Africa.

Mr Alawadhi said Iata last year worked with Nigeria, where the blocked funds have been cleared, while its efforts with Ethiopia and Egypt led the owed amounts to “drop significantly”.

This year, date shows that Mozambique has climbed up to the top of blocked funds countries, withholding $205 million from airlines, compared with $127 million in October 2024.

Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea and Gabon collectively withheld $191 million from airlines, the date states. This was followed by Algeria ($178 million and Lebanon with $142 million.

Pakistan and Bangladesh have made “notable progress” in clearing their backlog to $83 million and $92 million, respectively, from $311 million and $196 million in October 2024. Bolivia made the most significant improvement, fully clearing its backlog that stood at $42 million at the end of October 2024.

Blocked funds are a contentious issue as the revenue is vital for airlines to cover dollar-denominated expenses and maintain their operations as they deal with thin profit margins. However, governments that are withholding these amounts are often struggling with a shortage of foreign currency reserves.

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