Plans for a new Dh128 billion ($34.8 billion) terminal will result in much more than just a new-look airport in Dubai, according to experts.
The entire make-up of the city could be transformed when the plans for the airport come to fruition, they said.
When Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced the project on Sunday he said "an entire city" would be built around the airport.
Property and education experts told The National the Dh128 billion project had the potential to transform the lives of many in the emirate.
From this week onwards there will be a lot of market activity in these areas
Paul Kelly,
Allsopp and Allsopp real estate
Property experts agreed the news of the new airport had put the Dubai South area firmly back in the spotlight.
"I expect to see infrastructure improvements and increased commercial developments including new hotels and dining options which could attract millions to relocate to the surrounding areas," said Paul Kelly, operations director at the estate agency Allsopp and Allsopp.
"Additionally, with the Expo site being relatively close by, the ongoing redevelopments and communities that are being built around the area, we can expect to see growing attraction and demand in the community.
"I think most people in the market for home ownership or investment will be taking a renewed look at Dubai South this week."
He added that property prices in the area would inevitably rise as the airport project gets closer to completion.
"We expect to see property prices rising in Dubai South and the surrounding areas in the years to come," said Mr Kelly.
"Over that time, there may be some ups and downs, as we would expect in any market, but the trajectory over 10 years will be upwards with all the developments, infrastructure, and entertainment venues.
"It’s only going one way and that is why, from this week onwards really, I expect there will be a lot of market activity in these areas."
Once complete, Al Maktoum International Airport will have "the world's largest capacity", reaching up to 260 million passengers.
It is projected to be five times the size of the current Dubai International Airport, which is currently ranked top globally for international passenger traffic.
"The government has already said that they are expecting one million [people] to live and work in the area close to the new airport, so that must mean more properties [will be built] to address the demand," said Steven Leckie, associate director for off-plan and investment with the property firm Haus & Haus.
The news of the investment in the airport means similar development in the area around the airport is inevitable, he added.
Mr Leckie predicted there would be significant investment in new properties in the Dubai South area, but that did not necessarily mean those already living in the area could expect an immediate surge in rental prices.
"I am sure we will see some new communities; we already know that Damac Lagoons 2 will be launched there shortly," he said.
"I expect people will not be asked to pay more to live there (Dubai South) in the short term as the new airport is a massive project and will take years to complete."
It was only at the start of this month that Dubai South Properties launched the fourth phase of its South Bay waterfront development after selling out the first three phases, which includes more than 600 villas.
Major growth predicted
Education bodies in Dubai are also keeping a close eye on developments in the Dubai South area, as they expect it will experience major growth in the coming years.
"As Dubai South emerges as a vibrant urban hub adjacent to the airport, Taaleem is collaborating with strategic partners and government entities to develop additional educational facilities post-2027," said Sam Truman, chief operating officer of schools group Taaleem.
"This proactive planning aims to accommodate the growing residential demands of this swiftly developing area."
It will not just be people in Dubai South who reap the benefits of the community's expansion but also those nearby, according to the principal of a school in neighbouring Dubai Investments Park (DIP).
"The announcement about the new airport will only increase the number of families coming to Dubai," said Leigh Girven, principal at Greenfield International School, who is expecting to see a boom in the number of pupils in years to come.
"We are looking forward to welcoming those new families and we are making sure that our school can meet the needs of those students when they arrive."
The airport’s development will attract new opportunities for businesses to thrive in the area, she said, which in turn would create opportunities for work experience and other projects for pupils.
'Cheb%20Khaled'
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Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
BUNDESLIGA FIXTURES
Friday (UAE kick-off times)
Cologne v Hoffenheim (11.30pm)
Saturday
Hertha Berlin v RB Leipzig (6.30pm)
Schalke v Fortuna Dusseldof (6.30pm)
Mainz v Union Berlin (6.30pm)
Paderborn v Augsburg (6.30pm)
Bayern Munich v Borussia Dortmund (9.30pm)
Sunday
Borussia Monchengladbach v Werder Bremen (4.30pm)
Wolfsburg v Bayer Leverkusen (6.30pm)
SC Freiburg v Eintracht Frankfurt (9on)
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
if you go
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The 12 breakaway clubs
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
RIDE%20ON
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
MATCH INFO
What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany
Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.