Title: Emirates/El Maktoum: Dubai's Aviation Industry – The Pillar of Our City's Economic Growth Strategy

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Title: Emirates/El Maktoum: Dubai's Aviation Industry – The Pillar of Our City's Economic Growth Strategy

Emirates Group and Dubai Airports have released an economic impact study highlighting the central role of aviation in Dubai's economy. Based on projections of financial growth and passenger increases, the study quantifies the sector's contributions and anticipates its upward trajectory.

Compiled by global research firm Oxford Economics, the study examines the direct economic activity generated by the aviation sector, indirect activity through its supply chain, and consumption supported by wages paid to local aviation workers. It also evaluates the catalytic impact of tourism expenditure facilitated by the aviation sector in Dubai.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group and Chairman of Dubai Airports, stated, “Under Sheikh Mohammed bin Rashid Al Maktoum's leadership, Dubai's aviation sector has been a cornerstone of our economic growth strategy and will continue to play a key role in the D33 Economic Agenda.”

“With strong air connectivity, Dubai occupies a significant position on the global stage for trade, investment, and tourism, while also being a leading player in aviation and logistics. Our ambitious plans for Dubai World Central - Al Maktoum International Airport and ongoing investments to expand capacity at Dubai International will support the anticipated demand in air transport and open up further economic opportunities. Our growth plans will create more high-skilled jobs and encourage innovation by working with leading technology partners to enhance travel experiences and make operations more efficient and safe.”

Contribution of the Aviation Sector to Dubai's Economy

In 2023, the Dubai aviation sector, comprising Emirates Group, Dubai Airports (including Dubai International and Dubai World Central - Al Maktoum airports), and other aviation organizations, is estimated to contribute 137 billion AED (37.3 billion USD) in gross value added (GVA) to Dubai's GDP, equivalent to 27%. This includes a 94 billion AED basic economic impact and a 43 billion AED catalytic effect from aviation-facilitated tourism. These figures are expected to steadily increase, reaching 196 billion AED or 32% of Dubai's estimated GDP by 2030.

Aviation-led activities created 631,000 jobs across Dubai, equivalent to one in every five jobs in the emirate in 2023. By 2030, an additional 185,000 aviation-connected jobs are expected, with total employment supported by Dubai's aviation sector reaching 816,000.

The previous economic impact report published by Oxford Economics in 2014 revealed that the aviation sector contributed 27% to Dubai's GDP and provided 417,000 jobs. While the sector's share of Dubai's GDP has remained stable, its gross value added has increased in real terms. The current figures reflect diversified growth in other sectors along with the broader economy over the past decade.

Vital investments by Dubai to prepare its aviation sector for the future and ensure its status as an economic driver include significant ongoing investments to expand capacity and operations at Dubai International, alongside plans for a next-generation facility at Dubai World Central - Al Maktoum International. The new 128 billion AED airport will be five times the size of Dubai International upon completion of its first phase within ten years, eventually accommodating 260 million passengers annually with over 400 aircraft stands. The expansion of Dubai World Central - Al Maktoum International is not included in the core impact results of the study but is anticipated to contribute an estimated 6.1 billion AED to Dubai's GDP and create 132,000 jobs by 2030.

The new airport and surrounding infrastructure will contribute to Dubai's Economic Agenda (D33), aimed at strengthening the emirate's trade and tourism footprint. D33’s progressive development plans aim to make Dubai one of the world's top five logistics hubs and one of the most connected cities globally, adding 400 new flight destinations to its external trade map.

Aviation and Tourism in Dubai

Aviation is also a driving force behind international tourism growth in Dubai. In 2023, visitors to Dubai, one of the world's most visited travel destinations, stayed an average of 3.8 nights, spending an average of 4,300 AED on hotels, restaurants, attractions, and shopping. According to the report, international visitors flying to Dubai spent an estimated 66 billion AED last year.

Overall, tourism spending facilitated by aviation contributed an estimated 43 billion AED in gross value added, or 8.5% of Dubai's GDP, and supported 329,000 jobs. More than half of this GVA, 23 billion AED, was generated from passengers flying to Dubai with Emirates. Tourism in Dubai is expected to grow significantly over the next six years, with aviation-supported tourism spending projected to support 63 billion AED in GVA, equating to 10% of Dubai's projected GDP and one in every eight jobs in Dubai.