UAE airlines lead the way with 552 planes in pipeline
Airlines in the region currently have an estimated $345 billion worth of aircraft on order, according to MEED’s Aviation and Airports 2016 report.
With order numbers close to 1,300, airlines in the UAE lead the way with 552 aircraft on order, Qatar has 369, followed by Iran with 218.
According to company reports, Etihad Airways will have 179 aircraft deliveries between 2016 and 2025, Emirates Airline has firm orders for 142 A380s while flydubai, which operates a single fleet type of Next-Generation Boeing 737-800 aircraft, will take delivery of more than 100 aircraft by the end of 2023.
The report said: “While Dubai’s Emirates Airline, Abu Dhabi’s Etihad Airways and Qatar Airways lead the region in terms of the value of on-order planes, most of the smaller airlines have put in place restructuring programmes to enable them to contribute to the expansion of each state’s economy in view of lower oil income and increased urgency to diversify their economies away from oil.”
A projected increase in passenger traffic would also require airport upgrades. To cope with extra passenger traffic more than $100 billion-worth of airport projects are under way and planned across the region.
“These projects are intended to address a capacity gap as airport passenger volumes across the Middle East has outstripped capacity by 11 per cent,” the report added. “With these, an additional capacity of 400 million passengers a year can be accommodated across the region’s airports over the next 10 to 20 years.”
The new and expanded airports are expected to be complete between the end of 2016 and 2020.
These include Muscat International, Abu Dhabi International’s Midfield Terminal Complex, King Abdulaziz International in Jeddah and the new passenger terminal at Bahrain International.
The largest potential opportunities for contracting and sub-contracting companies are expected to come from the construction of the next phase of Dubai’s Al Maktoum International, the further expansion of Jeddah airport, Hamad International’s expansion in Doha, and the upgrade of airports in Iran.
The staging of Expo 2020 Dubai and the 2022 FIFA World Cup in Qatar will further boost the region’s profile.
Majid Al Futtaim will invest Dhs260 million to redevelop City Centre Sharjah. As part of the company’s Dhs30 billion investment in the UAE by 2026, the City Centre Sharjah redevelopment is set for completion in the last quarter of 2017, with hundreds of direct and indirect jobs being created. While increasing the mall’s fashion and lifestyle brands by 25 new storefronts, boosting the total number of retailers to 150 and adding 13,700sqm of retail space, City Centre Sharjah’s expansion will also include a 12-screen VOX Cinema, a City Centre Clinic and four new dining options. Ghaith Shocair, of Majid Al Futtaim – Properties, said: “Our Dhs260 million investment in City Centre Sharjah will complement the company’s new mall being developed in Al Zahia as well as the expansion of City Centre Ajman.” The redevelopment of assets such as City Centre Sharjah is a key element of Majid Al Futtaim’s UAE strategy to open 10 new City Centre destinations, 28 cinemas and 40 Carrefour supermarkets by the end of 2020.