• A view of Abu Dhabi's new ‘Terminal A’ building. It is scheduled to begin operations in early November. Photo: Abu Dhabi Airports
    A view of Abu Dhabi's new ‘Terminal A’ building. It is scheduled to begin operations in early November. Photo: Abu Dhabi Airports
  • Inside the terminal. Photo: Abu Dhabi Airports
    Inside the terminal. Photo: Abu Dhabi Airports
  • The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports
    The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports
  • The terminal has already featured prominently in the Tom Cruise blockbuster Mission: Impossible – Dead Reckoning Part One. Abu Dhabi Media office
    The terminal has already featured prominently in the Tom Cruise blockbuster Mission: Impossible – Dead Reckoning Part One. Abu Dhabi Media office
  • A view of the terminal under construction. Photo: Abu Dhabi Airports
    A view of the terminal under construction. Photo: Abu Dhabi Airports
  • Nearing completion. Photo: Abu Dhabi Airports
    Nearing completion. Photo: Abu Dhabi Airports
  • In January, the Executive Council gave the go-ahead for a host of projects in Abu Dhabi, including Abu Dhabi International Airport's Midfield Terminal. Wam
    In January, the Executive Council gave the go-ahead for a host of projects in Abu Dhabi, including Abu Dhabi International Airport's Midfield Terminal. Wam
  • Passenger traffic through Abu Dhabi International Airport jumped 67 per cent year-on-year in the first six months of 2023. Photo: Abu Dhabi Airports Company
    Passenger traffic through Abu Dhabi International Airport jumped 67 per cent year-on-year in the first six months of 2023. Photo: Abu Dhabi Airports Company
  • The new Midfield Terminal under construction in 2015. Mona Al Marzooqi / The National
    The new Midfield Terminal under construction in 2015. Mona Al Marzooqi / The National
  • The new Midfield Terminal under construction in 2015. Photo: Abu Dhabi Airports
    The new Midfield Terminal under construction in 2015. Photo: Abu Dhabi Airports
  • The new Midfield Terminal under construction in 2016. Christopher Pike / The National
    The new Midfield Terminal under construction in 2016. Christopher Pike / The National
  • Abu Dhabi's Midfield Terminal under construction. Photo: H.G. Esch
    Abu Dhabi's Midfield Terminal under construction. Photo: H.G. Esch
  • Visitors and journalists tour the construction site of the Midfield Terminal of Abu Dhabi International Airport. Reuters
    Visitors and journalists tour the construction site of the Midfield Terminal of Abu Dhabi International Airport. Reuters
  • The new terminal's opening comes amid a massive boom in air travel as the global aviation industry recovers from the devastating effects of the Covid-19 pandemic. Wam
    The new terminal's opening comes amid a massive boom in air travel as the global aviation industry recovers from the devastating effects of the Covid-19 pandemic. Wam

Abu Dhabi looks to new aviation era as $3bn terminal to open


Deena Kamel
  • English
  • Arabic

Abu Dhabi International Airport's long-awaited Midfield terminal building is scheduled to begin operations in early November, bolstering the emirate's position as a global centre for trade and business.

Now known as Terminal A, the new building will accommodate up to 45 million passengers per year, process 11,000 travellers per hour and operate 79 aircraft at any given time, state-owned operator Abu Dhabi Airports said on Thursday.

"As Abu Dhabi’s new gateway to the world, Terminal A is an embodiment of Abu Dhabi Airports’ commitment to support the emirate’s sustainable economic development," said Sheikh Mohammed bin Hamad, chairman of Abu Dhabi Airports.

"The opening of the facility, which is on par with the largest and grandest on our planet, turns over a new page in Abu Dhabi’s 55-year aviation history. A beacon of modernity and sophistication, it will be a pivotal driver for our emirate’s growth by spurring tourism and trade.”

Covering 742,000 square metres of built-up area, Terminal A is one of the largest airport terminals in the world and will significantly increase Abu Dhabi International Airport’s passenger and cargo capacity.

Airlines prepare for move to Terminal A

"Etihad Airways is excited and prepared to move into its new home at Terminal A ... we’re looking forward to the enhanced customer journey it will provide," Mohammed Al Bulooki, chief operating officer at Etihad Airways, told The National.

"Etihad is actively collaborating with Abu Dhabi Airports to ensure a seamless transition and will provide clear information to its guests about their departure and arrival terminals."

Etihad’s flight schedules for Terminal A are in the final stages of preparation and the airline will communicate directly with passengers regarding any changes that may affect them during this transition, he added.

Wizz Air Abu Dhabi, a joint venture between Hungary's Wizz Air and Abu Dhabi state holding company ADQ, also welcomed the move.

“We look forward to moving to Midfield terminal from the beginning of November," Johan Eidhagen, managing director of Wizz Air Abu Dhabi, told The National.

"Abu Dhabi reaffirms its leading position as a global aviation hub, providing passengers with speed and comfort for a seamless and digitised journey. Together, we are committed to enhancing the future of the industry to secure a thriving and sustainable aviation ecosystem.”

Air Arabia Abu Dhabi, the low-cost joint venture with Etihad Airways, said the terminal opening in November will further improve the travel experience from the emirate.

"With its state-of-art infrastructure, the facility will further contribute to Abu Dhabi’s success of aviation industry and its ecosystem while providing Air Arabia with the opportunity to broaden its services, offering passengers an elevated travel experience from the capital, Abu Dhabi,” Adel Al Ali, group chief executive of Air Arabia, said.

The new terminal opening is a "significant development for the aviation landscape in Abu Dhabi and the broader Gulf region", said Linus Bauer, founder and managing director of Bauer Aviation Advisory.

"This expansion aligns with the continuing efforts to enhance airport infrastructure and accommodate the growing demand for air travel.

"The addition of the new terminal is likely to strengthen Abu Dhabi’s position as one of the regional aviation megahubs, alongside Dubai’s airport capacity expansions and Riyadh’s new planned terminal," he added.

The timing of the new terminal’s opening as air travel demand soars following the pandemic underscores "the region’s commitment to meeting passenger needs and capitalising on the strong rebound in travel", Mr Bauer said.

The move is expected to contribute to increased capacity in the region, facilitating smoother travel experiences for Etihad Airways' passengers and supporting the local economies, he added.

The new terminal, on which construction began in 2012, was originally scheduled for completion in 2017.

"The aviation world in the region has changed significantly since the original planned opening," said John Strickland, director of aviation consultancy JLS Consulting.

"Abu Dhabi's Etihad Airways has become a more focused operation, low-cost carriers have become important players in Abu Dhabi and there has been growth around the region."

The terminal opening comes amid "growing demand and healthy market dynamics", he added.

Abu Dhabi is seeking to diversify non-oil sectors – as part of wider plans to reduce the economy's reliance on oil – with a focus on developing strategic industries including travel, tourism, cargo and logistics.

"This remarkable expansion of one of the busiest airports in the Middle East not only enhances connectivity but reaffirms our status as a hub for tourism, trade and commerce," said Saood Al Hosani, undersecretary of the emirate's Department of Culture and Tourism.

"For decades, Abu Dhabi has served as a gateway to the world, and the new terminal will unlock new avenues for cultural exchange, renewed exploration and unforgettable experiences – further contributing to the emirate welcoming more than 24 million visitors in 2023."

The new midfield terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase, Etihad chief executive Antonoaldo Neves told The National in May.

The Abu Dhabi-based airline aims to triple its number of passengers to 30 million and double its fleet to 150 planes by 2030, aided by the new airport terminal, he said at the time.

The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports
The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports

The new terminal's opening comes amid a massive boom in air travel as the global aviation industry recovers from the devastating effects of the Covid-19 pandemic.

Demand for travel has continued unabated despite higher air fares and inflationary pressure. A continuing mismatch between travel demand and available airline seats has sent fares soaring.

Global passenger traffic reached 94 per cent of pre-Covid levels in June, according to latest figures from the International Air Transport Association (Iata).

Passenger traffic through Abu Dhabi International Airport jumped 67 per cent year-on-year in the first six months of the year as it expanded its route network and added more airline customers.

A total of 10.2 million passengers used the airport in the January to June period, up from 6.2 million in the same time last year.

Abu Dhabi plans to increase the tourism sector's contribution to its gross domestic product to 12 per cent by 2030, up from 5 per cent this year, as the emirate continues to promote itself as a travel and culture destination, Mr Al Hosani said in June.

The UAE capital is “on track” to meet its target of attracting 24 million visitors this year, up from 18 million last year, DCT Abu Dhabi said.

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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press

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Oscars in the UAE

The 90th Academy Awards will be aired in the UAE from 3.30am on Monday, March 5 on OSN, with the ceremony starting at 5am

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UAE currency: the story behind the money in your pockets
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Correspondents

By Tim Murphy

(Grove Press)

Tank warfare

Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks. 

“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.

“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”

Updated: August 31, 2023, 5:00 PM