Dubai’s aviation sector is projected to support over 1,194,700 jobs by 2030, with the total economic impact on the emirate expected to grow to $88.1 billion, according to the latest report by research firm Oxford Economics.
The report estimated that the overall economic impact of both aviation and tourism related activities will rise to about $53.1 billion in 2020, representing 37.5 per cent of the GDP and supporting over 754,000 Dubai-based jobs.
The aviation sector- which includes the Emirates Group, Dubai Airports, Dubai Duty Free, regulatory authorities and other aviation businesses- had a core impact of $16.5 billion in terms of gross value added (GVA) last year.
Oxford Economics defined GVA as the contribution that an institution, company or an industry makes to GDP.
The report also noted the aviation industry had a knock –on effect on Dubai’s economy.
For every $100 of activity in the aviation sector, a further $72 is added in other sectors of the local economy from supply chain connections and expenditures, Oxford Economics said. Meanwhile, for every 100 jobs created in aviation, an additional 116 jobs are created elsewhere in Dubai.
Such an economic impact is only projected to increase over the next few years with the aviation sector’s contribution to economy is predicted to grow at one of the fastest rates between 2014 and 2020 at the back of international passenger traffic and cargo.
Meanwhile, the industry’s contribution to Dubai’s economy in 2013 amounted to $26.7 billion, representing almost 27 per cent of the GDP.
The sector also supported a total of 416,500 jobs and accounted for 21 per cent of the emirate’s total employment, the report said.
Oxford Economics also revised its estimate of the number of passengers expected to pass through Dubai international Airport. It said that the airport is forecast to receive 126.5 million passengers by 2020, almost 30 per cent more than its assessment in 2010.
“It is no accident that we are a global aviation hub today,” said Sheikh Ahmed Bin Saeed Al Maktoum, chairman and chief Executive of Emirates Airline and Group, chairman of Dubai Airports and president of the Dubai Civil Aviation Authority.
“It has taken us years to build up the critical competencies and infrastructure that we have today, and we now have a solid base on which to further develop.
“We will continue to take a consensus-based approach to infrastructure investment, embrace open competition, and focus on opening up and connecting markets through efficient operations.”
Dubai has been investing heavily in developing its airport infrastructure, coveting the position of the world’s busiest airport.
Dubai Airports is executing a $7.8 billion expansion plan that includes building a new Concourse 3 and revamping the Terminal 2 in the current airport. Another major Concourse is slated to open next year.
Dubai also announced an investment of $32 billion to expand the emirate’s Al Maktoum International Airport to handle over 200 million people annually by the next decade.