Dubai DXB airport sees record 2024 traffic, IMF upgrades UAE growth projection
Business
Passenger forecast now stands at 91m after first quarter figures jumps to 23m
- The UAE has accelerated plans to diversify its economy away from hydrocarbons and draw foreign investment
- Its non-oil GDP now represents over 70pc of the contribution
DUBAI (Reuters) – Dubai's main airport expects to handle a record passenger traffic this year after an 8.4 per cent rise in the first quarter compared with a year earlier, operator Dubai Airports said on Tuesday.
Dubai International Airport (DXB), a major global travel hub, welcomed around 23 million passengers in the January-March period, the operator said in a statement, noting that the uptick was partly driven by increased destination offers by flagship carrier Emirates and its sister low-cost airline Flydubai.
"With a strong start to Q2 and an optimistic outlook for the rest of the year, we have revised our forecast for the year to 91 million guests, surpassing our previous annual traffic record of 89.1 million in 2018," CEO Paul Griffiths said in the statement.
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Dubai is the biggest tourism and trade hub in the Middle East, attracting a record 17.15 million international overnight visitors last year.
Its ruler Sheikh Mohammed bin Rashid al-Maktoum last month approved a new passenger terminal in Al Maktoum International Airport worth 128 billion dirhams ($34.85 billion).
The Al Maktoum International Airport will be the largest in the world with a capacity of up to 260 million passengers, and five times the size of DXB, he said, adding all operations at Dubai airport would be transferred to Al Maktoum in the coming years.
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DXB is connected to 256 destinations across 102 countries. In the first quarter, India, Saudi Arabia and Britain were the top three countries by passenger numbers, Dubai Airports added.
UAE GDP FORECAST UPGRADED
The International Monetary Fund (IMF) said on Monday the United Arab Emirates was experiencing strong economic growth, with overall real GDP projected to grow by about 4pc this year, higher than earlier estimates.
The IMF had projected GDP growth for the Gulf oil exporter at 3.5pc in 2024 in its most recent Regional Economic Outlook report, published in April.
In its latest Article IV end of mission statement, the IMF's delegation noted that economic growth in the UAE was broad based, and driven by solid domestic activity in sectors such as tourism, construction and financial services.
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"Foreign demand for real estate, increased bilateral and multilateral ties, and the UAE’s safe haven status continue to drive rapid growth in housing prices and an increase in rents, while adding to ample domestic liquidity," the statement said.
Overall economic growth would likely be further supported by higher hydrocarbon GDP growth this year, in part driven by higher crude oil production from the UAE’s OPEC+ quota increase, it added.
The UAE – one of the world's top oil exporters – has accelerated plans to diversify its economy away from hydrocarbons and draw foreign investment, with non-oil GDP now representing over 70pc of the overall GDP contribution.
The IMF said that accelerated public and private investment and structural reforms, including in areas such as renewable energy and technology, "could spur growth more than expected."
