Passenger numbers surged at Dubai International Airport by 23 per cent in May from a year earlier, when runway repairs slowed growth.
A total of 6.26 million passengers used the airport in May compared with 5.08 million during the same period last year. In May 2013, 5.21 million passengers used the airport.
Global passenger traffic during May registered strong demand growth, led by the Middle East airlines, according to International Air Transport Association (Iata). Middle East carriers reported 14 per cent growth in demand, compared to a global average of 6.9 per cent, as capacity rose 19.7 per cent compared to 6.5 per cent globally. Load factor for the regional carriers fell 3.7 percentage points to 74.6 per cent.
But the trade body warned of a slowdown.
“The financial crisis in Greece and recent weakness in regional trade activity in Asia-Pacific have the potential to dampen performance in these markets in the coming months,” said Tony Tyler, Iata’s director general and chief executive. The airport underwent a US$1 billion runway refurbishment programme over an 80-day period starting in May last year.
During the first five months, Dubai International Airport received 32.38 million passengers, compared to 29.60 million passengers during the same period last year, an increase of 9.4 per cent.
The budget carrier flydubai’s new services to Slovakia, the Czech Republic, Bosnia, Bulgaria and Croatia, Emirates’ service to Hungary, and Air France-KLM’s low-cost unit Transavia’s connections to Bulgaria drove up the growth rate in the eastern Europe sector to 85.4 per cent during May.
It was followed by the Indian subcontinent at 33.8 per cent, Arabian Gulf by 31.1 per cent and North America by 28 per cent.
The number of flights the airport handled rose to 34,017, an increase of 48.8 per cent from 22,856 in May last year.
It also handled 15.5 per cent more cargo in May to touch 216,712 tonnes, but the volumes last year were affected by the runway closure.
Apart for Middle Eastern carriers growth in global freight, volumes continued to slow in May, according to Iata on Wednesday.
“Some economic fundamentals still point to a rebound in the second half of the year, but we have to recognise that business confidence is flat and export orders in decline,” Mr Tyler said.
Freight demand for Middle Eastern carriers grew by 18.1 per cent, compared to a global average of 2.1 per cent, because of increasing trade within the region and the Gulf carriers’ hub strategy, the trade body said. Capacity expanded 19.4 per cent compared to the global average of 4.3 per cent.
Abu Dhabi International Airport, which reported a 14.9 per cent year-on-year rise in passenger numbers during May to 1.87 million, would now handle more flights to Seychelles.
Etihad Airways yesterday said it had started operating double daily services to Mahé in the Seychelles from four flights a week starting Wednesday.
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Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
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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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UAE currency: the story behind the money in your pockets
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EA Sports FC 26
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