Arab Finance: The International Air Transport Association (IATA) said Egypt’s aviation sector has strong long-term growth potential, forecasting passenger demand to grow at an annual rate of 3.4% between 2024 and 2050 under its mid-range scenario, above the global average growth rate of 3.1% over the same period, as per a press release.

Under its high-range scenario, annual passenger demand growth is projected at 3.8%, as per IATA.

IATA also urged closer cooperation between the government and industry to ensure future expansion is backed by cost-efficient infrastructure, internationally aligned regulations, and sustainable aviation initiatives.

Nick Careen, IATA’s Senior Vice President Operations, Safety and Security, commented: “Egypt has a strong aviation growth potential that can underpin prosperity. The opportunity is clear: more connectivity, more jobs, more trade, and more tourism. Airlines are investing for growth, and the regulatory environment must keep pace.”

“That means infrastructure that is efficient and cost-effective, regulation that follows global standards, and policies that keep aviation sustainable. IATA is working with the government of Egypt and industry partners to ensure aviation can deliver its full economic and social value,” Careen noted.

The association attributed the growth prospects to ongoing investments in airport and air navigation infrastructure, including developments at Cairo International Airport, Alexandria International Airport, and Sphinx International Airport, which will position Egypt as a regional aviation hub.

IATA also called on the government to establish a supportive policy environment for sustainable aviation fuel (SAF) development in line with internationally recognized sustainability standards.

The Ministry of Civil Aviation has reinforced its commitment to aviation’s net-zero carbon emissions by 2050 target by advancing plans for SAF production, supporting Egypt’s ambition to become a regional hub for lower-carbon aviation.

In April, QNB Egypt co-financed a sustainable aviation fuel (SAF) production facility in Egypt, one of the region’s most significant sustainable infrastructure projects. The project is expected to produce up to 200,000 tons of biofuel yearly, reducing up to 500,000 tons of carbon dioxide equivalent annually. The commercial operations are expected to kick off by the end of 2027.

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