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Dubai bets on $35 billion airport project to increase revenue

Dubai is resuming the construction of a new passenger terminal at Al Maktoum International Airport in anticipation of a surge in visitor numbers, following a hiatus that spanned several years.

The approval for the terminal’s designs came from the Emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, and is projected to require an investment of 128 billion dirhams ($34.8 billion), as stated by the Dubai government. Al Maktoum International Airport, known for hosting the biennial Dubai Air Show, has gained prominence as a hub for cargo planes and private jets.

Dubai Airports is strategizing to incentivize more airlines to transition their operations to the new terminal in the coming years, as revealed by Paul Griffiths, Chief Executive Officer of the airport operator, in an interview.

Dubai, recognized as one of the world’s busiest long-haul transit hubs, has experienced a surge in air traffic surpassing pre-pandemic levels due to an increase in visitor footfall and a revival in long-haul connecting flights. Emirates, the city’s flagship carrier, reported record half-year profits extending through September 2023 and has been advocating for DWC’s expansion to accommodate its growth plans and expanding fleet.

Construction work on Dubai’s Al Maktoum airport was halted in 2019 amid economic challenges in the Gulf region, as reported by Bloomberg. The airport is designed to rank among the world’s largest, with an annual capacity exceeding 260 million passengers, according to its operator.

The recent torrential rainstorm marked the most disruptive weather event in the 63-year history of Dubai International (DXB) airport, according to Griffiths, who disclosed that approximately 2,155 flights were cancelled during the deluge, marking the highest number of cancellations on record.

He noted that while the airport has encountered challenging weather conditions in the past, the scale of disruption during this event necessitated a comprehensive and coordinated response from every member of the airport community.

The rainstorm, which saw a year’s worth of rainfall inundate Dubai within 24 hours on April 16, led to the cancellation, delay, and diversion of hundreds of flights at DXB. However, normal operations were restored at the airport by Monday, April 20, following concerted efforts to mitigate the impact of the adverse weather conditions.

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