Dubai International Airport (DXB) handled a record 92.3 million passengers last year, an annual increase of nearly 6 per cent, as the emirate solidified its standing as a global tourist destination.
The world's busiest airport by international traffic beat its November forecast of 91.9 million annual passengers last year, up from 87 million in 2023 and exceeding its pre-Covid record of 89.1 million in 2018.
“Dubai is the airport of the world … and a new world in the aviation sector,” Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X on Thursday.
Dubai Airports over the next 10 years will invest Dh128 billion ($34.8 billion) to “restructure the global aviation landscape with Emirati standards”, he said.
DXB recorded 300,000 flight movements, served 106 airline customers and operated flights to 272 cities in 107 countries last year, he added.
December was the airport's busiest month of last year, with 8.2 million passengers, the Dubai Media Office said.
Dubai welcomed nearly 17 million international visitors in the first 11 months of last year, the Dubai Department of Economy and Tourism's latest data shows. Western Europe was its top source market followed by South Asia and the Gulf countries, as the emirate continued to expand its tourism sector.
Emirates, the world's largest long-haul airline and the home carrier at DXB, said in November that it expects travel demand to “remain strong” for the rest of its 2024-2025 financial year, with plans to increase capacity and grow revenue as new aircraft join its fleet.
To accommodate future growth in passenger traffic, Dubai is also expanding its second hub, Al Maktoum International Airport (DWC), with a $35 billion terminal that will have a capacity of 260 million passengers a year once the final phase is completed. That airport currently has a capacity of 32.5 million passengers − handling mainly cargo and some low-cost airlines.
Dubai is pursuing a strategy to diversify its non-oil sector with a heavy focus on tourism, aviation, hospitality, technology and trade.
For the first half of last year, the emirate’s economy grew by 3.2 per cent to reach Dh231 billion, according to the latest available official data from the Dubai Media office in November.
Popular markets
Last year, India retained its position as DXB’s largest destination market, with 12 million passengers. Saudi Arabia recorded double-digit growth, with passenger numbers reaching 7.6 million.
Other top markets included the UK (6.2 million), Pakistan (4.5 million) and the US (3.5 million), while China recorded a 30.7 per cent year-on-year growth, driven by a surge in direct traffic.
London remained the top city destination, with 3.9 million passengers, followed by Riyadh (3.2 million), Mumbai (2.5 million), Jeddah (2.3 million) and New Delhi (2.2 million).
In terms of air freight, DXB handled 2.2 million tonnes of cargo throughout last year, an year-on-year increase of 20.5 per cent.
Outlook for DXB
Dubai Airports is “confident” about reaching the milestone of 100 million annual passengers by 2027, it said.
However, Paul Griffiths, chief executive of Dubai Airports, said on Thursday that the operator is likely to bring that forecast forward, predicting that DXB can reach the 100 million-mark in 2026.
“Because of the strong growth we've had and the fact that we've revised our forecast during the course of last year at least three times in the upward direction, that's giving us the confidence to suggest that we might end up reaching 100 million earlier,” Mr Griffiths said.
In 2025, DXB is expected to handle “94 million plus” passengers, as a continuing shortage of new aircraft risks constraining its growth, Mr Griffiths said.
“The uncertainty of delivery schedules and the hugely long lead times that both Boeing and Airbus have for their aircraft is having a big impact, exacerbated by the aircraft retirements that many airlines put in place during the Covid-19 pandemic,” he said.
“So many airlines are waiting for aircraft deliveries that are, in some cases, years behind schedule. That's why in 2025 we've got only a 1.7 million passenger increase in that number in our forecast. We don't believe that the supply of new aircraft will be in sufficient volume to fuel the growth that we would otherwise be able to facilitate if the aircraft were available.”
UAE airlines such as Emirates have joined a chorus of international carriers airing their frustration about continuing delays in aircraft deliveries that are costing them growth opportunities.
DWC airport terminal expansion
Meanwhile, the Dubai government is working on plans for the expansion of DWC with a new airport terminal to accommodate the anticipated growth in passenger numbers in the next decade.
The planned airport terminal expansion is still in the detailed design phase, with discussions under way with Emirates and flydubai, as well as construction companies, Mr Griffiths said.
“The aim is, by 2032, to have the airport pretty close to finishing and to have a capacity of 150 million on opening day,” he said. “We're working very closely with all the partners on this mega-project to ensure that we have timely delivery, because we cannot afford to constrain the growth of aviation here in Dubai, because that's a constraint on the growth of the economy, and both of those are absolute no-go areas.”
Asked if DXB's capacity will be able to stretch to accommodate increasing passenger traffic until the new DWC terminal is ready, Mr Griffiths said this is “clearly a challenge”.
However, there is a “safety valve” with the current passenger terminal in DWC to which some airlines can migrate their operations over the next few years, he said.
The biggest concern is to ensure that the road and railway network around DXB is able to cope with an increasing numbers of passengers, to ensure that the DWC expansion project is delivered on time and to maximise the growth at DXB, he added.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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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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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
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Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com