Kippreport gets insights from Mike Belk, CEO and president of Daimler Middle East and LevantMarch 26, 2015 12:02
Emerging markets’ airports becoming the world’s new trade hubs
‘Investment opportunities are endless’ claims Arabian Reach
April 8, 2014 2:32 by kippreport
With expansive developments, emerging markets airports are now setting a benchmark for the rest of the world and fast becoming the world’s new trade hubs. Dubai and other emerging markets’ airports are leapfrogging traditional expansion models, offering a complete package from hotels to fully equipped business centres. This is according to Arabian Reach, organisers of the upcoming Emerging Airports Conference and Exhibition.
“The investment opportunities in these markets are endless with most of these airports opening their doors for PPP, BOT and privatisation modes in development and operational stages,” says Arabian Reach. “The storming growth of GDP in some African, Asian, American and Middle East markets has a strong relation with the boom in the aviation sector in these countries.”
Airports across the Middle East region have mega projects in the pipeline, such as the Midfield Terminal (Abu Dhabi), and plans in Africa and Asia. Dubai World Central will be the largest airport in the world with upcoming expansions including a planned city, shipping facility and business hub.
According to Arabian Reach, Middle East carriers are expected to post their highest ever profit this year ($2.1 billion). The aviation industry in countries such as the UAE contribute approximately 14 per cent of the GDP, prompting these emerging markets to push boundaries seize opportunities for further growth.
Further to their profit-generating role in the economy, these airports also play a vital part in serving billions of passengers. Their steadily growing figures reflect not only a growing capacity to cope with the numbers, but also increasing popularity due to advancing infrastructure.
Dubai International Airport recently surpassed Heathrow as the busiest in the world and is set to officially rank number one in the world by 2015, and its passenger traffic reached 5.6 million in February, compared with Heathrow’s 4.9 million.