Gulf states investing Dh121bn in airports

Gulf states are currently investing about $33 billion (Dh121 billion) in airport developments in order to meet the growing demand for future passenger growth.

Amongst the leading investors in airport development activity in the Gulf are cities such as Dubai which has allocated $10 billion, Abu Dhabi which has allocated $6.8 billion, Qatar with $11 billion, Jeddah with $1.5 billion, Muscat with $1.2 billion, approximately $2.1 billion in Kuwait and $335 million in Bahrain.

Statistics from the Airports Council International (ACI) and Iata support the numbers as the global aviation bodies predict airports in the Middle East to handle over 400 million passengers by 2020.

These figures were released during the 11th edition of the Airport Show, which was opened on Tuesday by Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and CEO of Emirates Group. The show features over 160 exhibitors and a 63 member strong contingent of hosted buyers who will be sourcing products to the tune of Dh106 billion.

The opening ceremony was attended by a number of industry professionals, visitors, contractors and senior representatives from airport authorities and airlines. Sheikh Ahmed Bin Saeed took a tour of the exhibition and was briefed on the latest developments and technologies available to the airports industry.

Organised by REED Exhibitions Middle East, the event caters to the needs of existing and new airports in the region where development and expansion projects are estimated to cost US$90 billion over the next few years.

Dr. Khaled Al Mazrouei, General Manager of Fujairah International Airport and the Chairman of the Airport Leaders Summit 2011 said: "As per the International Air Transportation Association (Iata), the UAE is expected to be the world's second fastest growing aviation market in the world with 10.2 per cent growth by 2013, second to China with a 10.8 per cent growth.

Over the last decade, Middle Eastern carriers went from 5 per cent of global passenger traffic to 11per cent.

Industry analysts also believe that the private air charter business will pick up in the late 2011 and on into 2012. This is evident from the forecasted growth for the region in which aircraft movement is predicted to touch 160,000 by 2018 at a compounded annual growth rate of 6.21per cent per year for the Middle East region." GCC countries have allocated an estimated $90 Billion for airport development over the next few years, which include eight new runways in the Gulf region, development of 1200 airports and military bases worldwide in addition to the new ones coming up.

For several years now, airports and airlines have been benefiting from the robust demand for air travel in line with healthy global economic growth.

A leading project that will take the center-stage during the show is King Abdulaziz International Airport (KAIA) that will aim to source state-of-the-art technology and construction materials for its estimated spending of US$11.3 billion towards its expansion.

Mohamad Bader-Eddin, Show Director, REED Exhibitions Middle East, said: "Airport development and expansion is projected to exponentially grow over the coming years in the Middle East and Asia. As we near the exhibition date, we are looking forward to gather the sector's veterans, who will exchange valuable industry insights, highlight opportunities and explore a roadmap to overcome challenges."

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