Abu Dhabi's airport operator expects 10.7 million passengers to pass through the UAE capital's main airport in 2022, more than double last year's number, as the industry continues to recover from the coronavirus-induced slowdown.
Abu Dhabi International Airport handled 5.26 million passengers in 2021, 5.5 per cent less than the previous year, as demand declined due to global travel restrictions, Abu Dhabi Airports said on Wednesday.
Last year's passenger traffic levels were mainly driven by a surge in travel during the fourth quarter. About 2.43 million passengers passed through the airport in the last three months of 2021, or 46 per cent of the passenger traffic for the entire year.
“The sharp rise in passenger traffic during the last three months of the year is a clear indication that the recovery is under way and gaining momentum,” said Abu Dhabi Airports chief executive Shareef Al Hashmi.
The UAE capital has taken measures such as reducing business licence fees to bolster its tourism sector amid the pandemic as it seeks to diversify its economy.
With multibillion-dollar investments in attractions such as Louvre Abu Dhabi and the Guggenheim, which is set to be completed by 2025, the emirate is strengthening its position as a preferred destination for travellers and tourism investment.
Abu Dhabi is bullish about the outlook for air passenger demand this year due to the UAE's rapid Covid-19 vaccination programme and the loosening of travel curbs around the world.
“While the Omicron variant may have a temporary effect on demand during the early part of 2022, we expect traffic to double at Abu Dhabi International this year to reach 10.7 million as vaccination programmes progress, government restrictions in markets around the world ease and consumer confidence rebounds,” Mr Al Hashmi said.
In 2021, the airport recorded 74,176 flights, up 21.5 per cent from 61,034 flights in the previous year. Abu Dhabi International’s network also grew to 103 destinations in 2021, from 75 destinations in 2020.
The top five source countries in terms of passenger volumes in 2021 were India with 932,949 passengers, followed by Pakistan (550,728), Egypt (446,883), the US (254,201) and Saudi Arabia (244,954).
The busiest destinations served by Abu Dhabi International were Cairo with 372,456 passengers, Islamabad (209,280), New Delhi (197,012), Lahore (184,315) and Dhaka (182,983), the operator said.
“Our focus on health, safety and the well-being of [Abu Dhabi] travellers significantly enhanced our passenger experience during the year as we launched a fully equipped PCR facility, touchless technology, self-baggage drop systems and smart queuing technology to prevent crowding during peak operations,” said Mr Al Hashmi.
Air cargo volumes last year stood at 711,715 tonnes last year, up 31.8 per cent from the 540,144 tonnes handled in 2020, according to the airport operator.
“The surge in volumes was largely attributed to increases in shipments of general cargo and special products, including express, temperature-controlled, vulnerable cargo and pharmaceuticals,” Abu Dhabi Airports said.
Mail volumes were also on the rise, with 8,767 tonnes passing through Abu Dhabi International’s cargo centre, an increase of 13.1 per cent from the 7,749 tonnes handled in 2020, the operator said.
Air cargo has been a rare bright spot for the aviation industry since the onset of Covid-19 two years ago, with rates increasing due to a surge in e-commerce sales and as pandemic-related supply chain bottlenecks drive up demand for air freight services.
Pressure on airline profitability is set to continue easing during 2022 as passenger traffic recovers and cargo demand strengthens, the International Air Transport Association said this week.
An Iata survey of airline chief financial officers and cargo business bosses showed an improvement in profitability, demand, cargo and employment in an industry battered by the Covid-induced slowdown.
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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.
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Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
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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.”
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Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
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- Flexible work arrangements
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- Option 2: 50% across three years
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Second Test: New Zealand 21 British & Irish Lions 24
Third Test: New Zealand 15 British & Irish Lions 15
How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
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Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson
Dec 13, 2020: PM and his wife throw a party
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