A recent economic impact study by Emirates Group and Dubai Airports highlights the vital role of aviation in Dubai’s economy, projecting significant job growth and economic contributions in the coming years.
The study, conducted by Oxford Economics, quantifies the direct and indirect economic activities generated by the aviation sector. In 2023, the aviation sector supported approximately Dhs 137 billion (USD 37.3 billion) in gross value added (GVA), representing 27% of Dubai’s GDP. This figure is expected to rise, with projections indicating that by 2030, aviation will contribute Dhs 196 billion, or 32% of Dubai’s GDP.
Job creation and growth
Currently, the aviation sector accounts for 631,000 jobs in Dubai, which is about one in five jobs in the emirate. Looking ahead, an additional 185,000 aviation-linked jobs are expected to be created by 2030, bringing the total to 816,000 jobs supported by the sector.
A previous report from 2014 found that aviation contributed 27% of Dubai’s GDP and supported 417,000 jobs. While the GDP contribution has remained stable, the overall gross value added has increased, reflecting growth in other sectors and a more diversified economy.
Future investments in aviation
Dubai is investing heavily in its aviation infrastructure to ensure continued growth. Ongoing projects include expansions at Dubai International Airport and the construction of a new facility at Dubai World Central – Al Maktoum International Airport. This new airport, projected to cost Dhs 128 billion, will be five times the size of Dubai International and is set to be completed in phases over the next decade, ultimately accommodating 260 million passengers annually.
While not included in the main impact results, the expansion is expected to contribute Dhs 6.1 billion to Dubai’s GDP in 2030 and support 132,000 jobs.
Supporting economic agendas
These developments align with Dubai’s Economic Agenda (D33), which aims to enhance trade and tourism. The plan includes adding 400 destinations to Dubai’s trade network and establishing the emirate as one of the world’s top five logistics hubs.
Impact on tourism
Aviation also plays a crucial role in driving international tourism to Dubai. In 2023, visitors spent an average of Dhs 4,300 during their stays, contributing an estimated Dhs 66 billion in total tourism spending. This spending generated Dhs 43 billion in GVA, supporting 329,000 jobs.
With projections showing significant growth in tourism, aviation-facilitated tourism spending is expected to reach Dhs 63 billion by 2030, equating to 10% of Dubai’s GDP and supporting one in eight jobs in the emirate.
tanvir@dubainewsweek.com