UAE aviation set for exceptional growth
Notwithstanding the headwinds posed by cyclical slowdowns across the globe and within the region, UAE's national carriers - Emirates, Etihad Airways, Air Arabia, flydubai and the new-born low-cost carrier Air Arabia Abu Dhabi, Wizz Air Abu Dhabi and a Ras Al Khaimah-based airline to be launched by Spicejet - have set their sights on turbocharging the expansion of their global connectivity, frequencies and capacity over the coming years to cope with the exponential growth of tourism and commerce the UAE - a favoured global hub for investors, conferences, mega entertainment and trade events and a destination for fine living - is undergoing.
Adding a new dynamism to the bullish growth outlook is the ongoing Dh85 billion investment by various emirates on developing and upgrading aviation and tourism infrastructure.
Aviation experts are equally upbeat about the long-term outlook as the UAE has been investing in advancing its aviation sector in terms of using the latest technologies, research and development while seeking to forge agreements with local and global partners and increase trade and investment opportunities in the aviation industry.
The International Air Transport Association (Iata) in a studied projection said the UAE's aviation sector would grow 170 per cent, support 1.4 million jobs and contribute $128 billion to the nation's economy by 2037.
In its latest study on the importance of air transport to the UAE, the Montrealbased organisation said the domestic aviation industry at present supports nearly 800,000 jobs and contributes $47.4 billion to the economy, accounting for 13.3 per cent of the UAE's GDP.
Jawaher Al Mheiri, an Abu Dhabibased economist, said the UAE aviation sector has evolved into a major contributor to the country's GDP. In 2018, the sector contributed 15 per cent to the country's GDP and has become over the years, a significant player in bolstering the country's position as an international hub for business and tourism.
"The past 10 years were marked by key milestones for the UAE aviation in terms of fast expansion of airlines' network, fleet, crew and infrastructure, as well as the presence in the international markets," said Al Mheiri.
In comparison to the regional outlook, aviation experts are more optimistic about the UAE growth, and believe it would far outstrip the regional growth rate, which is projected to be 5.1 per cent annual traffic growth and a requirement of 3,130 new aircraft over the next two decades. For the UAE, the forecast is for an annual traffic surge of 5.8 per cent and a potential deployment of a total 1,739 aircraft in the next 20 years, up from the current size of 630 aircraft.
According to the Iata, given the ongoing prioritisation of aviation by the UAE government as a key strategic asset, the sector could generate an additional 620,000 jobs and an extra $80 billion in GDP for the nation's economy by 2037, the trade body of 290 airlines across the world said.
"Today the UAE is ranked No.1 globally for air trade facilitation, tops the Middle East region for visa openness, is an aviation powerhouse and its airlines carry the country's flag to all corners of the globe," said Muhammad Ali Albakri, the Iata's regional vicepresident for the Middle East.
"To maintain the country's competitiveness as a leading global aviation hub, sufficient air space capacity to meet demand, infrastructure investments aligned to growth and rapid implementation of new technology are essential," said Albakri.
Over the past 25 years, the UAE has experienced an economic transformation and aviation has been at the heart of this evolution. Few states have a better understanding of the economic benefits that aviation's connectivity provides than the UAE. Government policy supporting the development of aviation has paid great dividends, analysts said. Airports in the UAE have been in the forefront of embracing futuristic technologies.
As Sita, an IT provider for the air transport industry, has predicted, the next decade will witness an exponentially accelerated pace of change as digital native passengers and staff usher in futuristic technologies, from flying taxis to airports that think for themselves.