Dubai's aviation sector’s contribution to increase to Dh196 billion by 2030

Tourism is projected to grow significantly over the next six years, with the aviation industry expected to support one in eight jobs in the emirate

Waheed Abbas

Published: Thu 24 Oct 2024, 9:00 AM

Last updated: Thu 24 Oct 2024, 9:29 AM

Contribution of the aviation sector in Dubai is projected to increase to Dh196 billion by 2030, accounting for 32 per cent of the emirate’s GDP, according to a new study released by Emirates Group and Dubai Airports.

In 2023, Dubai’s aviation sector – which consists 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 Dh137 billion in gross value added (GVA), which is equivalent to 27 per cent of Dubai’s GDP, said the report which was compiled by Oxford Economics on the impact of aviation on Dubai’s economy.

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This included the core economic impact of Dh94 billion and Dh43 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 Dh196 billion, or 32 per cent of Dubai’s forecasted GDP by 2030.

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The study covered three aspects – direct, indirect and induced impacts – in its analysis.

The core impact of Dubai’s aviation sector comprised a direct gross value-added contribution of Dh70 billion and a further Dh24 billion stimulated through the sector’s supply chain spending and wage-funded consumption by employees.

“Dubai’s aviation sector has been a core pillar of our city’s economic growth strategy to date, and it will continue to play a key role in the D33 Economic Agenda,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, and chairman of Dubai Airports.

“Supported by strong air connectivity, Dubai has a prominent presence on the global stage for trade, investments, and 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,” he said.

Travel 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 Dh4,300 on hotels, restaurants, attractions and shopping. According to the report, international visitors flying to Dubai spent an estimated Dh66 billion last year.

The study noted that the catalytic impact of tourism facilitated by aviation contributed Dh43 billion to the local economy in 2023, with its GDP contributions expected to grow by more than 40 per cent by 2030.

In total, aviation-facilitated tourism spending is estimated to have contributed Dh43 billion in gross value added, or 8.5 per cent of Dubai’s GDP, supporting 329,000 jobs. More than half of the gross value added, Dh23 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 Dh63 billion in gross value added, equivalent to 10 per cent of Dubai’s projected GDP, as well as one in eight Dubai jobs.

Earlier this year, the World Travel and Tourism Council (WTTC) reported that the travel and tourism sector's contribution to the UAE economy will continue to grow as 23,500 new jobs will be created this year, taking the total number of employment to 833,000 in 2024. The travel and tourism sector will be employing 928,000 people by 2034, with one in nine residents working in the sector. This means, around 95,000 new jobs will be created between 2024 and 2034.

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