The Middle East will lead global air cargo growth by 2018 with the UAE set to become the third-largest market worldwide, the International Air Transport Association said yesterday.
Globally, air freight growth is estimated at 4.1 per cent over the next five years. Emerging economies, particularly in the Middle East and Africa, will lead growth, according to Iata.
“[However] geopolitical concerns, volatility of oil prices, and competition from rail and sea could also affect this forecast,” said Tony Tyler, Iata’s director general and chief executive. “The air cargo industry certainly cannot afford to be complacent.”
The airlines’ association expects the region to post a compound annual growth rate of 4.7 per cent between this year and 2018. The UAE will rank after the United States and China and, in the process, surpass Germany, Hong Kong, Korea and Japan, according to the statement.
Cargo volumes at Abu Dhabi International Airport were up 16 per cent year-on-year for the first six months of this year as Etihad Airways boosted its route network. Last year, Dubai International Airport ranked the fifth-busiest worldwide for cargo handling.
Surging aircraft traffic through the UAE is adding thousands of tonnes of extra cargo capacity every day. Restaurants, hotels and other fresh produce importers are reaping the benefits of the trend. At the same time demand is rising for warehouses around airports in Dubai and Abu Dhabi as the fresh produce logistics industry swells.
Iata also regards Qatar as another significant growth country. It expects compound annual growth rate to be 5.7 per cent, making it the sixth-fastest growing country. It predicts that Qatar will add 361,000 tonnes to take its total freight to 1.48 million tonnes.
Despite starting from a slow base, Iran will also experience significant growth between 2014 and 2018. Iata forecasts the country’s compound growth at 7 per cent per annum. It expects the country to add 44,000 tonnes of freight by 2018.
For international routes, Iata said that the fastest-growing segments will be between the Middle East and Asia at 6.2 per cent per year, followed by North America to South America at 3.9 per cent and Europe to southern Africa at 3.8 per cent.
selgazzar@thenational.ae
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Mohammed bin Zayed Majlis
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Men’s singles
Group A: Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn)
Group B: Kidambi Srikanth (Ind), Shi Yugi (Chn), Chou Tien Chen (Tpe), Viktor Axelsen (Den)
Women’s Singles
Group A: Akane Yamaguchi (Jpn), Pusarla Sindhu (Ind), Sayaka Sato (Jpn), He Bingjiao (Chn)
Group B: Tai Tzu Ying (Tpe), Sung Hi-hyun (Kor), Ratchanok Intanon (Tha), Chen Yufei (Chn)
