Air transport has a vast economic impact on the UAE, almost disproportionately compared to other countries. For air freight, this is due to its unique location as a halfway point for many world-crossing trips. This, too, is significant for commercial passenger travel, but the UAE has also become a central tourist hub in its own right.
So, how did the UAE grow to become one of the world’s great transport hubs? And what does the data say about the importance of air transport in the region? Learn about the history and figures and find out exactly how vital this sector is in one of the world’s most rapidly growing regions.
Emirates, owned by the government of Dubai's Investment Corporation of Dubai, was founded in 1985. Sir Maurice Flanagan, who was in charge of setting the airline up, was given just five months and $10 million in start-up capital to achieve this. The loan was repaid within a year.
Emirates experienced staggering growth during the 1990s, expanding its fleet with eyebrow-raising aircraft acquisitions. In 1991, Emirates secured a highly sought-after spot at London Heathrow, the world’s busiest international airport. Four years later, by its tenth anniversary, Emirates operated flights to 34 destinations across the Middle East, Far East, and Europe. In 1998, the airline reached record-breaking profits, serving nearly four million passengers and transporting around 200,000 tonnes of cargo by the decade’s close.
Passenger traffic at Dubai International soared to 11 million, prompting continued government investment in the region’s high-performing air transport sector. In 1998, the airport opened a US$500 million Terminal 2, followed by the Sheikh Rashid Terminal a few years later.
As the 2000s rolled in, Abu Dhabi Airport more than doubled passenger numbers after a multi-billion dollar expansion. Sharjah Airport also showed steady growth, developing a reputation in cargo services. In 2006, the airport reported a year-on-year rise in aircraft movements by 14.2%, with 36.9% passenger growth to 3.064 million passengers and freight handling increasing to 569,511 tonnes.
Charter jet sales grew rapidly in response to the growth of the region’s business aviation industry, leading to a rise in private jet companies and related services. Companies were desperate to invest in an area that could seemingly do no wrong. Dubai and Abu Dhabi saw an increase in Fixed-Base Operators. Abu Dhabi then took the daring step of creating an airport dedicated solely to business aviation, Al Bateen Executive Airport, in 2008.
Today, the UAE continues to forge a reputation as a titan of air transport. Expansions to Al Maktoum International Airport in Dubai mean that this could soon become the most prominent aviation hub the world has ever seen, with a projected annual capacity of 12 million tonnes of freight and up to 260 million passengers.
UAE Air Transport in Numbers
In a population of just over 11 million people, around 777,000 jobs in the UAE are supported, directly or indirectly, by the aviation industry. That means 7% of the whole population is dependent on the industry. What makes this even more fascinating is that the industry, through air transport and foreign tourists arriving by air, contributes 13.3% of the region’s GDP. The vast importance of air transport in the UAE is self-evident, especially compared to other nations. In the U.K., for example, air transport contributes just 4% to the GDP. Even in Singapore, a city-state known for aviation, air transport is just 5% of GDP.
It might not surprise that India has the highest number of passenger arrivals and is the busiest air cargo route to the UAE. This is partly due to the high number of Indian workers in the UAE, Dubai, and Abu Dhabi, the busiest airports connecting India with Africa, Europe, and the Americas. Saudi Arabia, Pakistan, the United Kingdom, and Oman round out the top five countries regarding passenger arrivals, reinforcing the UAE’s prominence as a global tourist hub for the world’s wealthiest individuals. According to the IATA, these tourists spend approximately $21 billion annually in the UAE. This money is continually reinvested, allowing the aviation and tourism sectors to grow yearly.
While the aviation sector’s economic impact on the UAE is undoubted, it’s also vital to consider how it grows and the influence of the UAE around the world. Air transport provides speedy connections between cities and a virtual bridge that enables the economic flow of goods, people, and ideas. The more these ‘virtual bridges’ flow through the UAE, the more dependent other countries become on the region. Dubai is one of the twenty most connected airports in the world. With the hotly-anticipated Al Maktoum International Airport, this is only forecasted to grow in the near future.
A Bright Future for Air Transport in the UAE
From a clearing in the desert to one of the world’s most trusted and reliable transport hubs, the UAE has been on an impressive journey while making air transport a fundamental cog in the nation’s rapidly growing economy. With several scheduled growth opportunities on the horizon, this is set to maintain the UAE as one of the world leaders in aviation.