More than US$26 billion (Dh95.49bn) of sea and air infrastructure projects are under way or in the planning stages in the UAE to help cement the country's position as a global trade and logistics centre, a report from Standard Chartered Bank says. Investing in the expansion of ports and airports is a key way for the nation to meet its goal of economic diversification, the bank said in a report on Wednesday.
The UAE's geographic position means a third of the world's population is within four hours by plane, and it is also accessible to Europe, Asia, Africa and the Middle East by shipping routes. "We believe that the Government is right to be pursuing its expansion aggressively," said Philippe Dauba-Pantanacce, the senior MENA economist for Standard Chartered. Developing the country into a logistics centre would encourage more firms to set up regional headquarters.
Infrastructure developments benefited all sectors of the economy by lowering the costs of running businesses, the report said. Jebel Ali in Dubai, the world's largest man-made harbour at 152 sq km, is to be expanded to a capacity of 50 million 20 foot Equivalent Units (TEUs) by 2030. The port already accounts for about a third of Dubai's GDP. DP World, the state-controlled operator of Jebel Ali, is also opening a new port in Abu Dhabi: Sheikh Khalifa Port in Taweelah. Its capacity is planned to be 22 million TEUs and 35 million tonnes of cargo by 2028.
Sharjah and Fujairah are also expanding their ports. The UAE's airport expansion push is driven by government-backed airlines continuing to add to their capacity, and government development. Dubai International Airport is already the sixth-busiest airport in terms of international passenger traffic, with growth averaging 6.1 per cent in July, compared with July last year. Abu Dhabi International Airport, named the fastest-growing air centre last year by the Airports Council International, had monthly passenger traffic growth of 10.3 per cent in July.
tarnold@thenational.ae