Dubai starts constructing new $35bn passenger terminal at Al Maktoum International Airport


Aarti Nagraj
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Dubai on Sunday approved designs for a new passenger terminal at Al Maktoum International Airport and began construction at a cost of Dh128 billion ($34.8 billion) as the emirate boosts airport capacity to meet growing travel demand.

Once complete, Al Maktoum International Airport will have "the world's largest capacity", reaching up to 260 million passengers, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on X.

It will be five times the size of the current Dubai International Airport, which is currently ranked the top globally for international passenger traffic.

It will "fully absorb Dubai International Airport’s operations in 10 years", Dubai Media Office said.

The first phase of the project is expected to be ready within 10 years. Photo: Dubai Media Office / X
The first phase of the project is expected to be ready within 10 years. Photo: Dubai Media Office / X

The airport, spread across 70 square kilometres, will feature 400 aircraft gates, five parallel runways, and new aviation technology. It will have the capacity to handle 12 million tonnes of cargo annually.

The first phase of the project is expected to be ready within 10 years, with a capacity to accommodate 150 million passengers annually.

The airport will offer public transport links including to the metro, bus and city air transport.

"As we build an entire city around the airport in Dubai South, demand for housing for a million people will follow. It will host the world's leading companies in the logistics and air transport sectors," Sheikh Mohammed said.

"We are building a new project for future generations ... Dubai will be the world's airport, its port, its urban hub, and its new global centre."

Dubai's aviation sector has made a strong rebound from the pandemic-induced slowdown and was among the first to reopen to international travellers, bolstered by a strong Covid vaccine programme and health guidelines.

Al Maktoum International 'is planned in such a way as to represent a leap into the future'. Photo: Dubai Media Office / X
Al Maktoum International 'is planned in such a way as to represent a leap into the future'. Photo: Dubai Media Office / X

Dubai International Airport (DXB), which handled 86.9 million passengers last year, a growth of 31.7 per cent annually, retained its spot as the world's busiest international hub for passengers for a 10th consecutive year, data by the Airports Council International this month showed.

The airport recorded a total of 416,405 flight movements in 2023, the highest on record at DXB, and is connected to more than 260 destinations through more than 100 international airlines.

This year, the airport expects to receive 88.8 million passengers, close to its previous record of 89.1 million in 2018.

DXB expects its annual passenger traffic to reach 93.8 million next year and “hopefully we'll get the magic 100 million number not long after”, Paul Griffiths, chief executive of Dubai Airports, told The National in February.

The boom in traffic comes amid rising travel demand despite inflationary pressures, concerns about economic headwinds and risks stemming from geopolitical tension.

The emirate is also recording strong growth in tourism.

Dubai reported its best annual tourism performance last year, when international arrivals to the emirate increased 19.4 per cent to 17.15 million. This exceeded the 16.73 million visitors in 2019, according to Dubai’s Department of Economy and Tourism.

As part of Dubai's economic agenda D33, the emirate aims to attract Dh100 billion in additional tourism investments and receive 40 million hotel guests in 2031.

"The new airport, which will ultimately be over five times the size of Dubai International, will prepare the ground for the next 40 years of anticipated growth in Dubai’s aviation sector," said Sheikh Ahmed bin Saeed, chairman of Dubai Aviation City Corporation and president of Dubai Civil Aviation Authority.

"It will respond to the hub airline ambitious plans in terms of fleet acquisition and passenger growth," said Sheikh Ahmed, who is also chairman and chief executive of Emirates Airline and Group.

The airport is also being designed to "strongly contribute to mitigate environmental emissions" and aims to achieve LEED gold certification, he said.

“Al Maktoum International is planned in such a way as to represent a leap into the future."

The new airport will generate an estimated workforce and residential requirement for more than 1 million people living and working in Dubai South, which has been under development since 2007.

"DXB will continue to serve as the primary hub, meeting the needs of 100 million-plus guests over the next few years as phase two of DWC [Dubai World Central] takes shape," Mr Griffiths said on Sunday.

"We will be actively collaborating with our airline customers, our strategic partners, the Dubai government and our stakeholders to bring this visionary project to fruition."

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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.

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

Favourite things

Luxury: Enjoys window shopping for high-end bags and jewellery

Discount: She works in luxury retail, but is careful about spending, waits for sales, festivals and only buys on discount

University: The only person in her family to go to college, Jiang secured a bachelor’s degree in business management in China

Masters: Studying part-time for a master’s degree in international business marketing in Dubai

Vacation: Heads back home to see family in China

Community work: Member of the Chinese Business Women’s Association of the UAE to encourage other women entrepreneurs

The Voice of Hind Rajab

Starring: Saja Kilani, Clara Khoury, Motaz Malhees

Director: Kaouther Ben Hania

Rating: 4/5

Politics in the West
SERIE A FIXTURES

Friday (UAE kick-off times)

Sassuolo v Bologna (11.45pm)

Saturday

Brescia v Torino (6pm)

Inter Milan v Verona (9pm)

Napoli v Genoa (11.45pm)

Sunday

Cagliari v Verona (3.30pm)

Udinese v SPAL (6pm)

Sampdoria v Atalanta (6pm)

Lazio v Lecce (6pm)

Parma v Roma (9pm)

Juventus v Milan (11.45pm)

 

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Transmission: 6-speed auto

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