Aviation-led activity accounted for 631,000 jobs across Dubai, equivalent to one in five jobs in the emirate in 2023, a new report said on Thursday.
Moreover, a further 185,000 aviation-linked jobs are expected to be created by 2030, with the total number of jobs supported by Dubai’s aviation sector forecast to grow to 816,000 jobs, the report added.
The study, compiled by global research firm Oxford Economics and released by Emirates Group and Dubai Airports, highlights the central role aviation plays in Dubai’s economy, by quantifying its contributions and forecasting the sector’s upwards trajectory, based on financial and passenger growth projections for the sector.
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“Supported by strong air connectivity, Dubai has a prominent presence on the global stage for trade, investments, tourism, and is a leading player in aviation and logistics. Our ambitious plans for Dubai World Central – Al Maktoum International airport, and our ongoing investments to expand capacity at Dubai International, will unlock further economic opportunities by supporting the projected demand for air transport,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline & Group, and chairman of Dubai Airports.
“Our growth plans will generate even more skilled jobs, and also help drive innovation as we work with leading technology partners to develop future solutions to enhance travel experiences and make operations more efficient and secure,” he added.
Contribution to Dubai economy
In 2023, Dubai’s aviation sector, consisting of Emirates Group, Dubai Airports (including Dubai International and Dubai World Central – Al Maktoum airports), and other aviation sector entities are estimated to have supported AED137 billion ($37.3 billion) in gross value added (GVA), equivalent to 27 percent of Dubai’s GDP. This included the core economic impact of AED94 billion, and AED43 billion from the catalytic impact of aviation-facilitated tourism. These figures are projected to increase steadily, with aviation activities facilitated by Emirates and Dubai Airports contributing AED196 billion, or 32 percent of Dubai’s forecasted GDP by 2030 (in 2023 prices).
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A previous economic impact report released by Oxford Economics in 2014 found that the aviation sector contributed to 27 percent of Dubai’s GDP and supported 417,000 jobs. While the latest results indicate the share of Dubai’s GDP has remained stable, the sector’s gross value added has increased in real terms, with the current figures reflecting faster growth across other sectors, as well as diversification in the wider economy over the past decade.
Indirect impact
In 2023, Dubai’s aviation sector spent over AED36 billion with Dubai-based suppliers on goods and services to support its day-to-day operations and capital investments. This included energy groups such as the Emirates National Oil Company (ENOC), utilities companies such as Dubai Electricity and Water Authority (DEWA), and aviation services companies such as Dubai Aerospace Enterprise (DAE).
This spending stimulated economic activity throughout Dubai’s economy, as the sector’s suppliers purchase from their own suppliers and so on. As this spending ripples through supply chains, the economic footprint reaches all parts of the Dubai economy.
The main industries benefitting were Dubai’s manufacturing and professional services sectors. Across the economy in 2023, the Dubai aviation sector’s supply chain spending is estimated to have indirectly supported AED18 billion in gross value added, equivalent to 3.5 percent of Dubai’s GDP, and 139,000 jobs, equivalent to one in 23 jobs.
The Dubai aviation sector’s indirect GDP contribution is forecast to rise to AED26 billion in 2030, equivalent to 4.2 percent of Dubai’s forecast GDP. This reflects the sector’s increased demand for goods and services to support its expanding operations and capital investments. The employment supported through the aviation sector’s supply chain spending is forecast to grow to 183,000 jobs by 2030, or one in 20 jobs in Dubai.
Impact of Al Maktoum airport
Dubai’s vital investment to futureproof its aviation sector and ensure it remains an economic driver is evident in ongoing major investments to expand capacity and operations at Dubai International, in addition to a new generation facility at Dubai World Central – Al Maktoum International. The new AED128 billion airport will be five times the size of Dubai International, with the first phase to be completed in 10 years. When fully completed, Dubai World Central – Al Maktoum International will consist of over 400 aircraft stands, with capacity to serve 260 million passengers annually. The expansion of Dubai World Central – Al Maktoum International is not included in the study’s main impact results. However, the construction project is expected to contribute an estimated AED6.1 billion to Dubai’s GDP in 2030, as well as support 132,000 jobs.
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Aviation and tourism
Aviation is also the driving force behind the growth of international tourism to Dubai. As one of the most frequented destinations in the world, visitors stayed an average of 3.8 nights in 2023, spending an average of AED4,300 on hotels, restaurants, attractions and shopping. According to the report, international visitors flying to Dubai spent an estimated AED66 billion last year.
In total, aviation-facilitated tourism spending is estimated to have contributed: AED43 billion in gross value added, or 8.5 percent of Dubai’s GDP, supporting 329,000 jobs. More than half of GVA, AED23 billion, was generated by those flying to Dubai with Emirates. Tourism to Dubai is projected to grow significantly over the next six years, with aviation-facilitated tourism spending expected to support AED63 billion in gross value added, equivalent to 10 percent of Dubai’s projected GDP, as well as one in eight Dubai jobs.
Emirates’ direct impact
Through operating the world’s largest international airline, and one of the world’s largest aviation services companies, Emirates plays a central role in Dubai’s aviation sector and the wider economy. Emirates airline flew 52 million passengers and transported 1.9 million tonnes of cargo in 2023, while dnata handled 385,000 aircraft worldwide.
Through these operations, Emirates directly contributed AED56 billion to Dubai’s GDP and employed 81,000 staff in the emirate.
Emirates’ supply chain spending also made an indirect contribution of AED14 billion to Dubai’s GDP and supported 106,000 jobs.
In addition, wage-funded consumption spending by Emirates’ employees — and by those working in its supply chains — stimulated an induced gross value added contribution of AED5 billion to Dubai GDP and supported a further 48,000 jobs.
In total, Emirates’ core economic impact in 2023 supported AED75 billion in gross value added, equivalent to 15 percent of Dubai’s GDP, and 236,000 jobs across Dubai economy, or one in every 14 jobs in the emirate.
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