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Friday, October 25, 2024

Dubai’s aviation sector to add 185,000 jobs by 2030

Dubai’s aviation sector’s growth is not only significant locally but also positions it as a model for global aviation development.

Dubai is on course to solidify its status as a global aviation powerhouse, with a projected creation of 185,000 new jobs by 2030, according to a new economic impact study by Emirates Group and Dubai Airports, conducted by Oxford Economics. The study highlights aviation’s integral role in Dubai’s economy, forecasting it to account for one in four jobs in the emirate by the decade’s end.

Rapid Job Growth Amidst Post-Pandemic Recovery

As the aviation industry rebounded from the COVID-19 crisis in late 2021, Dubai’s recruitment in aviation soared. By 2023, the sector had already supported over 630,000 jobs, including roles for pilots, cabin crew, and ground staff. With plans to expand capacity at both Dubai International and Al Maktoum International airports, employment within the sector will reach a total of 816,000 by 2030, equating to one-fourth of all jobs in Dubai.

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Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates Group and Dubai Airports, highlighted the sector’s ambitious expansion plans, noting, “Our growth plans will generate even more skilled jobs and drive innovation as we develop future solutions to enhance travel experiences.”

Economic Impact and Future Projections

The aviation sector’s economic footprint is expected to grow considerably. In 2023, the industry contributed AED 137 billion (USD 37.3 billion) to Dubai’s GDP, accounting for 27% of the total. By 2030, this is projected to rise to AED 196 billion, or 32% of Dubai’s GDP. Emirates Group alone is expected to contribute AED 144 billion, representing 24% of Dubai’s GDP, with aviation-facilitated tourism adding another AED 63 billion. This economic powerhouse will drive significant fiscal benefits as well, with expected tax revenue from the sector increasing to AED 4.3 billion by 2030, up from AED 3.2 billion in 2023.

Expansion of Dubai World Central (DWC)

Key to these growth projections is the expansion of Dubai World Central – Al Maktoum International Airport, which is set to receive a AED 128 billion investment, allowing it to eventually handle 260 million passengers annually. While the DWC expansion’s main economic impact was not part of the recent study, it is estimated that the new passenger terminal alone will add AED 6.1 billion to Dubai’s GDP in 2030, supporting an additional 132,000 jobs. These upgrades, combined with planned expansions at Dubai International Airport, are expected to unlock new economic opportunities in air transport, positioning Dubai as one of the top five global logistics centers.

Catalytic Impact of Tourism

Tourism, heavily facilitated by Dubai’s air connectivity, remains another strong driver of the emirate’s economy. Dubai’s airports handled more than 88 million passengers in 2023, welcoming 17 million international visitors. The tourism segment alone contributed AED 43 billion to Dubai’s GDP in 2023 and supported 329,000 jobs. With the industry expected to expand further, by 2030, tourism is forecast to contribute AED 63 billion and employ over 429,000 people.

Dubai’s aviation sector’s growth is not only significant locally but also positions it as a model for global aviation development. Tim Clark, President of Emirates, remarked, “I wish more cities would emulate Dubai in giving aviation the recognition and support it deserves.”

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To maintain its competitive edge, Dubai is committed to integrating advanced technologies in aviation. Sheikh Ahmed stressed the importance of collaboration with tech partners to streamline operations and enhance passenger experiences. With increased demand for air travel, investment in technological advancements at Dubai’s airports will be vital to secure the emirate’s role as a hub for innovation.