The aviation industry contributes $37 billion, accounting for 27% of Dubai's GDP
2 weeks ago
The aviation industry contributes $37 billion, accounting for 27% of Dubai's GDP
Emirates Group and Dubai Airports have published an economic impact study conducted by the global research firm Oxford Economics, which highlights the pivotal role of aviation in Dubai’s economy. The study projects that the aviation sector's contribution to Dubai's GDP will rise to nearly one-third by 2030.
This total economic impact encompasses both the core contributions of the aviation sector and the wider benefits generated through aviation-facilitated tourism. In 2023, the aviation sector supported over 630,000 jobs and is expected to create an additional 185,000 jobs by 2030. The tourism facilitated by aviation contributed $11.8 billion to the local economy in 2023, with projections indicating a growth of more than 40% by 2030.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Dubai Airports, stated, “Under the leadership of Sheikh Mohammed bin Rashid Al Maktoum, aviation has been a cornerstone of Dubai’s economic growth strategy, and it will continue to play an essential role in the D33 Economic Agenda.”
He emphasized that Dubai's robust air connectivity has solidified its global presence in trade, investment, and tourism, making it a key player in the aviation and logistics sectors. The ongoing expansion plans for Dubai World Central – Al Maktoum International Airport and further enhancements at Dubai International Airport are set to unlock new economic opportunities, meet growing air transport demand, and create additional skilled jobs.
According to the study, in 2023, Dubai's aviation sector—including Emirates Group, Dubai Airports, and various aviation-related entities—was estimated to generate AED 137 billion ($37.3 billion) in gross value added (GVA), representing 27% of the emirate's GDP. This figure comprises AED 94 billion from core aviation activities and AED 43 billion from the catalytic effects of tourism. By 2030, these contributions are projected to rise to AED 196 billion, or 32% of Dubai's anticipated GDP.
A previous report from Oxford Economics in 2014 indicated that aviation contributed 27% of Dubai's GDP and supported 417,000 jobs. While the GDP share has remained stable, the real value added has increased, reflecting accelerated growth in other sectors and diversification within the broader economy over the last decade.
Dubai's strategic investments aim to future-proof its aviation sector, with ongoing major expansions at Dubai International and the development of a new facility at Dubai World Central – Al Maktoum International Airport. This new AED 128 billion airport will be five times larger than Dubai International, designed to accommodate over 400 aircraft and serve 260 million passengers annually. Although the expansion isn't included in the main study results, it is expected to contribute around AED 6.1 billion to Dubai's GDP by 2030 and create 132,000 jobs.
The new airport and its associated infrastructure are key components of Dubai's D33 Economic Agenda, which aims to enhance the emirate's trade and tourism capabilities, expand its global connectivity, and establish Dubai as one of the top five logistics hubs worldwide.
Aviation is also crucial for attracting international tourists to Dubai. As one of the world's most popular destinations, visitors typically stay an average of 3.8 nights and spend approximately AED 4,300 on accommodations, dining, attractions, and shopping. In total, aviation-facilitated tourism spending contributed AED 43 billion in GVA, or 8.5% of Dubai’s GDP, supporting 329,000 jobs in 2023. More than half of this GVA, AED 23 billion, came from tourists traveling with Emirates. Looking ahead, tourism to Dubai is expected to grow significantly, with aviation-facilitated tourism projected to generate AED 63 billion in GVA, equivalent to 10% of Dubai’s projected GDP, and support one in eight jobs in the emirate.
Other significant aviation entities contributing to this ecosystem include flydubai, Dubai Duty Free, Dubai Aviation Engineering Projects, Dubai Police, Dubai Customs, Dubai Immigration, Dubai Air Navigation Services, the Dubai Civil Aviation Authority, the General Directorate of Residency and Foreigners Affairs, and Dubai Aviation City Corporation.
Source: DailyFT