Emirates' pivotal role highlighted as key driver of Dubai's economic growth

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Emirates' pivotal role highlighted as key driver of Dubai's economic growth

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Michael Doersam Chief Financial & Group Services Officer | Emirates Airline

By Sky Industry News

Oct 24, 2024

The Emirates Group, under the leadership of His Highness Sheikh Ahmed bin Saeed Al Maktoum, has established itself as a leading force in global aviation. Emirates stands as the largest all-international airline worldwide, while dnata ranks among the major providers of air transport-related services. The group's operations span six continents.

The rise of Emirates is attributed to a strategic plan crafted by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai. In 1985, with US$10 million seed capital, Sheikh Mohammed instructed the founding team to be self-reliant without expecting subsidies.

Emirates' management has adhered to these principles over the years. The airline's global reputation has significantly contributed to Dubai's economic growth through increased international visitation and demand for services. Over 39 years, Emirates has generated substantial dividends for its owners and an economic impact on Dubai.

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According to Oxford Economics, aviation accounted for 27% of Dubai’s GDP in 2023, contributing AED 137 billion in gross value added (GVA). Of this amount, the Emirates Group contributed AED 75 billion or 15% of Dubai's GDP. This includes direct business operations impact and indirect contributions from suppliers and partners.

Aviation plays a crucial role in Dubai’s aim to become a top global destination for tourism and commerce. In 2023, Emirates carried more than half of all international visitors arriving by air in Dubai, contributing an additional AED 23 billion through aviation-supported tourism.

In total, Emirates’ economic contribution was AED 98 billion or 19% of Dubai’s GDP in 2023. Projections suggest that by 2030 this figure will reach AED 144 billion or 24% of Dubai’s GDP.

The new Al Maktoum International Airport is expected to further support Emirates' growth when completed. This facility will expand capacity for continued development and meet travel demands across the network.

Dubai's success in aviation is attributed to effective policies and investments led by visionary leaders who prioritize long-term goals over short-term gains. This strategy resulted in significant GVA contributions last year.

The achievements in Dubai's aviation sector hold relevance beyond the city itself by driving innovation through unique business models demanding advanced aircraft technologies and expertise expansion across regions.

Emirates remains committed to contributing economically and socially both locally in Dubai and globally through its operations.