The Italian Air Force's aerobatic unit entertains visitors to the Dubai Airshow. AFP
The Italian Air Force's aerobatic unit entertains visitors to the Dubai Airshow. AFP
The Italian Air Force's aerobatic unit entertains visitors to the Dubai Airshow. AFP
The Italian Air Force's aerobatic unit entertains visitors to the Dubai Airshow. AFP


Why the Dubai Airshow is about more than just aviation


  • English
  • Arabic

November 17, 2023

Airshows are nothing if not spectacular; the sight of planes old and new soaring through the skies is a proven draw for crowds the world over. Although Dubai Airshow, which ends on Friday, has earned its place among the world’s top-tier aviation events, it is about much more than just aircraft.

Of course, the show was a natural backdrop to multibillion-dollar deals for new planes and training centres – Emirates, the world's biggest long-haul airline, placed an order for 95 additional Boeing 777X jets and Boeing 787 Dreamliners valued at $52 billion. It was also the scene for important announcements about investment in aviation – such as the launch of a Dh700 million ($190.5 million) programme to further modernise the UAE’s air navigation services over the next decade. However, a closer look at the airshow and what has been an important year for aviation in the UAE generally offers us a glimpse into the future of other sectors that will play a major role in our lives.

Aviation does not exist in a vacuum – it is an intrinsic part of the global economy and is the glue that binds strategic industries such as logistics, cargo and tourism. It is also on the cutting edge of engineering, technology and digitisation. It was this final sector that was on show with Emirates’ display of its coming biometric facial recognition system that promises to cut waiting times and queues for passengers. In a world where the shift to a cashless, paperless society seems set to continue, this was an important glimpse at what the future of travel may look like.

Sustainability is a key factor in all major industries these days, and aviation is no exception. That industry leaders used Dubai Airshow as a platform to explore ideas and innovations to reach their goals of net-zero emissions by 2050 points to the event’s importance. But elsewhere in UAE aviation, steps towards a greener future have already been taken, such as at Abu Dhabi International Airport’s recently opened new terminal building, which will reduce water consumption by 45 per cent and which includes more than 7,500 solar panels to power a three megawatt plant, saving an estimated 5,300 tonnes of carbon dioxide a year.

Aviation is not confined to jetliners and international travel. Dubai is notable for its interest in different forms of urban transport – including aerial city travel. The Integrity, a zero-emission electric air taxi produced by Spanish company Crisalion, and which can carry six passengers, was unveiled at the Dubai Airshow. It is due to undergo tests in Dubai next year as part of the city’s continuing efforts to break new ground on urban transportation.

Overall, this year’s Dubai Airshow demonstrates that aviation is to continue flourishing, not just in the UAE but in the wider GCC, which remains an important and strategic region. Passenger numbers are set to increase, new airlines – such as Saudi Arabia’s Riyadh Air – are being founded, and existing carriers are expanding their fleets and routes. Etihad, the UAE’s national airline, is a striking example of this ambition; it aims to triple the number of passengers carried to 33 million, double its fleet to 150 planes and increase its available seat kilometres – a measure of an airline's seats multiplied by kilometres flown – by about 30 per cent annually over the next seven years, its chief executive Antonoaldo Neves told The National earlier this month.

Other developments, such as the planned introduction of a pan-GCC visit visa, will further break down barriers to trade and travel. Dubai International Airport already expects to hit the 90 million-passenger mark for the first time in 2025 and with its new terminal, Abu Dhabi International Airport – soon to be renamed Zayed International Airport – will double current capacity to be able to handle up to 45 million passengers a year. This will enhance the UAE’s connectivity to the region and the wider world.

This is not expansion for the sake of it – growth in aviation and its supporting infrastructure is an investment for now and the future. Aside from creating jobs, aviation adds 14 per cent to UAE’s gross domestic product, according to the General Civil Aviation Authority – this is important revenue to be used in other areas. As President Sheikh Mohamed noted on Wednesday: “The aviation sector represents one of the most important vital fields that stimulate and support the growth of many sectors related to this industry.”

Aviation executives are also aware of their companies’ role in the UAE’s wider development. Discussing Emirates’ major purchase of new jets, the airline’s chairman and chief executive, Sheikh Ahmed bin Saeed, said on Tuesday that the orders “represent a significant investment that reflects Dubai's commitment to the future of aviation. It also supports the D33, Dubai's economic agenda”.

Dubai Airshow is a reliable gauge for where the industry is going, but what it really shows is how the future is shaping up for all of us.

Monday's results
  • UAE beat Bahrain by 51 runs
  • Qatar beat Maldives by 44 runs
  • Saudi Arabia beat Kuwait by seven wickets
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

Islamophobia definition

A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

Funk Wav Bounces Vol.1
Calvin Harris
Columbia

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.”

57%20Seconds
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
The specs

Engine: 1.4-litre 4-cylinder turbo

Power: 180hp at 5,500rpm

Torque: 250Nm at 3,00rpm

Transmission: 5-speed sequential auto

Price: From Dh139,995

On sale: now

A%20MAN%20FROM%20MOTIHARI
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EAbdullah%20Khan%0D%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EPenguin%20Random%20House%3Cbr%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E304%0D%3Cbr%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
Updated: November 21, 2023, 11:23 AM