This is why DXB records surge in passenger traffic, what IMF says?
An impressive 8.4 percent increase in passenger numbers during the first quarter compared to the previous year
Dubai: Dubai Airports revealed an impending surge in passenger traffic at Dubai International Airport (DXB), a pivotal global travel hub.
The announcement follows an impressive 8.4 percent increase in passenger numbers during the first quarter compared to the previous year.
First quarter performance:
During the period spanning January to March, DXB welcomed approximately 23 million passengers, a testament to its status as a cornerstone of Dubai's infrastructure. The surge in traffic was attributed in part to the expanded destination offerings provided by Emirates and its subsidiary, Flydubai.
Confidence in future growth:
CEO Paul Griffiths expressed confidence in the airport's future performance, citing a strong start to the second quarter and an optimistic outlook for the remainder of the year. Griffiths announced a revised annual forecast, anticipating a record-breaking 91 million guests, surpassing the previous high of 89.1 million set in 2018.
Dubai's global appeal
Dubai's prominence as the foremost tourism and trade centre in the Middle East was further underscored by its attraction of a remarkable 17.15 million international overnight visitors last year.
New terminal development
In a significant development, Sheikh Mohammed bin Rashid al-Maktoum recently permitted the construction of a new passenger terminal at Al Maktoum International Airport. Valued at 128 billion Dirhams ($34.85 billion), this terminal is poised to become the largest globally, with a capacity of up to 260 million passengers, five times larger than DXB.
Transition to Al Maktoum
The forthcoming terminal signifies a strategic shift, with all operations expected to transition from Dubai Airport to Al Maktoum in the coming years. DXB, currently serving 256 destinations across 102 countries, remains a vital link in global connectivity.
Top performers and market insights
During the first quarter, India, Saudi Arabia, and Britain emerged as the top three countries in terms of passenger numbers, according to Dubai Airports. These insights reflect the airport's role as a key gateway facilitating international travel and commerce.
IMF projections and economic outlook
Meanwhile, the International Monetary Fund (IMF) reported robust economic growth for the United Arab Emirates (UAE), with a projected real GDP expansion of around 4 percent this year, surpassing earlier forecasts that were made by the entity.
Diversification and investment drive
Recognising the imperative of economic diversification, the UAE has accelerated efforts to reduce reliance on hydrocarbons and attract foreign investment. Non-oil GDP now accounts for over 70 percent of the country's total GDP, signalling a shift towards a more diversified and resilient economy.
Potential for growth
The IMF emphasised the potential for accelerated growth through intensified public and private investment, coupled with structural reforms in sectors such as renewable energy and technology. These measures could further stimulate economic expansion beyond current expectations, solidifying the UAE's position as a dynamic and vibrant global hub.