Dubai Airshow: Dubai Airports raises annual passenger traffic forecast to 28.7 million

Dubai's airport operator raised its forecast for annual passenger traffic this year by an additional two million, anticipating the influx of travellers at Dubai International Airport (DXB) will reach 28.7 million as travel restrictions in key markets start to ease.

"We're projecting 57 million for next year at the moment and 28.7 million for this year", Paul Griffiths, chief executive of operator Dubai Airports, told The National at the Dubai Airshow. "If we can see those numbers come through that solidly thus far, then that gives us a pretty strong case for optimism."

Mr Griffiths said returning to pre-Covid levels of growth is likely by 2025 but getting back to full numbers by the end of 2024 would be "an excellent achievement".

The airport has recovered 80 per cent of point-to-point traffic, through transit travel was only at 20 per cent of pre-Covid levels, he said.

DXB may handle a record number of arrivals in the next six weeks of this year, he said.

In response to an increase in travel demand, Dubai International Airport will reopen its Concourse A on November 24, which will bring the airport to full capacity after 20 months of reduced operations due to the Covid-19 pandemic.

This will bring the airport's total capacity to 100 million passengers per year, which could expand to 120 million over the next few years through improving technology to facilitate faster passenger flows.

Dubai World Central, the emirate's second hub, will re-open its passenger terminal in May 2022 after operations were shutdown due to the pandemic, Mr Griffiths said.

"We're doing some work on the northern runway at DXB so we will need the capacity to be able to facilitate that," he said.

Beyond that, the DWC passenger terminal's continued operations will depend on the pace of recovery: a rapid rebound will see it remain open while a sluggish pace will lead to its closure, he added.

"We're not displacing any traffic or any growth by having that strategy in place, we're keeping all the options open for all of our airlines to operate exactly when they want to," Mr Griffiths said.

DWC's cargo operations are strong, recording 585 thousand tonnes in third quarter and is at 125 per cent of pre-Covid levels, he said.

"That business has gone crazy ... DWC is a major logistics hub now," he said. "DWC is really strong on the freight side and the passenger side will start to increase once DXB is full and we can no longer cope with demand at DXB."

DXB expects to remain the world's busiest international airport in 2021, retaining the title since 2014, he said.

DXB has suspended the so-called "use it or lose it" airport slots rule during the Covid-19 pandemic, allowing airlines to retain valuable airport slots as the pandemic grounded flights.

"We may have to change that regime probably by next summer once things bounce back ... you've got to call it at a certain point, because you can't hold on to capacity that some airlines aren't using whilst there is demand from other airlines that are desperate to use the slots," Mr Griffiths said.

DXB is actively seeking the right talent to run the business and manage the growth that is coming back, Mr Griffiths said. It had laid off 34 per cent of its staff during the pandemic akin to other hubs.

In terms of airport retail segment, which is highly dependent on footfall, DXB is seeing the average spending per passenger "rising through the roof" but the volumes have not recovered fully, he said.

"The future will be the complete disaggregation of the point of sale from the point of delivery," Mr Griffiths said, by giving passengers the option to order duty free goods inflight and choose where to have them delivered.

In October, passenger traffic at the airport more than doubled year-on-year to 3.4 million passengers, Dubai Airports said.

From January to October, the airport handled 20.7 million passengers, down 6 per cent on the same 10-month period last year.

The world’s busiest international airport expects the recovery to continue in the fourth quarter of 2021 as a result of easing travel restrictions globally, the opening of the six-month Expo 2020 Dubai from October, the Dubai Airshow held from November 14 to November 18 and the annual rush of tourists to the emirate during its cooler winter months.

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Dubai Airshow 2021 - in pictures

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Dubai International Airport’s passenger volumes in the third quarter reached 6.7 million, the operator said. It did not provide a comparative figure for the same period a year ago. The airport is currently serving 83 per cent of the destinations, compared with before the Covid-19 pandemic.

South Asia retained its rank as Dubai International Airport’s largest contributor of traffic led by India (2.8 million passengers) and Pakistan (1 million passengers). Egypt was ranked third with 753,000 passengers, followed closely by the US (710,000 passengers) and Turkey (598,000 passengers).

The top three cities by traffic were Cairo, Istanbul and Addis Ababa.

Cargo volumes hovered around 2019 levels during the third quarter. Dubai International Airport recorded 581,972 tonnes of freight during the period, bringing the total volume for the first nine months of 2021 to 1.7 million tonnes, a yearly increase of 25.3 per cent.

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

BUNDESLIGA FIXTURES

Friday Hertha Berlin v Union Berlin (11.30pm)

Saturday Freiburg v Borussia Monchengladbach, Eintracht Frankfurt v Borussia Dortmund, Cologne v Wolfsburg, Arminia Bielefeld v Mainz (6.30pm) Bayern Munich v RB Leipzig (9.30pm)

Sunday Werder Bremen v Stuttgart (6.30pm), Schalke v Bayer Leverkusen (9pm)

Monday Hoffenheim v Augsburg (11.30pm)

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

Greatest Royal Rumble results

John Cena pinned Triple H in a singles match

Cedric Alexander retained the WWE Cruiserweight title against Kalisto

Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus

Jeff Hardy retained the United States title against Jinder Mahal

Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos

Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe

AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out

The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

ESSENTIALS

The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”

Draw

Quarter-finals

Real Madrid (ESP) or Manchester City (ENG) v Juventus (ITA) or Lyon (FRA)

RB Leipzig (GER) v Atletico Madrid (ESP)

Barcelona (ESP) or Napoli (ITA) v Bayern Munich (GER) or Chelsea (ENG)

Atalanta (ITA) v Paris Saint-Germain (FRA)

Ties to be played August 12-15 in Lisbon

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.

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E-cigarettes report

Tobacco giants, under attack from governments and forced to print gruesome warnings on their products, pour millions into 'healthier' e-cigarette products

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register.

4) The campaign uses the hashtag #donate_hope

While you're here

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What does a decline in adherence to faith say about Britain?

Here's why even the non-believers must understand faith

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.

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Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills