Aviation could add extra $80bn to UAE economy by 2037

posted on 8th October 2019 by Eddie
Aviation could add extra $80bn to UAE economy by 2037

The aviation sector has been predicted to add an impressive 620,000 jobs to the UAE economy by 2037, according to IATA.

“The prioritisation of aviation industry as a key strategic asset could generate an extra $80 billion GDP for the UAE economy by 2037.” said the International Air Transport Association (IATA).

Air transport’s contribution to the UAE economy has been already significant. The industry at present supports nearly 800,000 jobs and contributes $47.4 billion to the economy, accounting for 13.3 per cent of the UAE’s GDP.

“If the government continues on this current path the UAE’s aviation market will grow 170 percent by 2037, support 1.4 million jobs and contribute $128 billion in GDP to the nation’s economy.” IATA said.

The airline body suggested that the UAE should increase its airspace capacity to ease congestion and meet future demand.

“Airspace capacity in the region has not kept pace with the growth in demand, which is leading to significant delays particularly in the GCC. Governments in the region must replace political fragmentation with collaborative cross-border decision-making to ensure that the global competitiveness of the region’s hubs is not affected,” the report stated.

IATA also suggested that the UEA should align infrastructure investments with expected growth and continue to leverage new technology to enhance efficiency.

“Future infrastructure investments must provide enough capacity to meet market demand and ensure airline technical and service level needs are aligned and remain affordable,” the report stated.

“Over the past 25 years, the UAE has experienced an economic transformation; aviation has been at the heart of this evolution.” said Muhammad Ali Albakri, IATA’s regional vice president for the Middle East.

“Today the UAE is ranked number one globally for air trade facilitation, tops the Middle East region for visa openness, is an aviation powerhouse and its airlines carry the country’s flag to all corners of the globe”.