meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE aviation returns to growth

12 October 2023

More news from the UAE’s transport sector: 

> Contractors start building Abu Dhabi light rail
> Sharjah airport award expected by the end of 2023
> Turkish firm wins $187.5m Dubai road upgrade
> Emirates and Shell Aviation sign sustainable fuel deal
> Abu Dhabi tenders Mid Island Parkway packages
> Abu Dhabi to open Midfield Terminal in November

 

Three years after their operations stopped during the Covid-19 pandemic, the UAE’s airports are again in expansionary mode.

Globally, aviation is returning to pre-pandemic levels. The International Air Transport Association (Iata) reported that traffic during August stood at 95.7 per cent of pre-Covid-19 levels based on revenue passenger kilometres.

Middle Eastern airlines performed particularly well. They posted a 27.3 per cent increase in August traffic compared to a year ago.

With Dubai International, Abu Dhabi International and Sharjah International airports serving as hubs for Emirates, Etihad and Air Arabia, the rebound in international travel has positively impacted passenger statistics. 

At Dubai International airport, the world’s busiest international hub, passenger traffic for the first half of the year surpassed 2019 levels. It handled 41.6 million passengers in the first six months of the year, slightly more than the figure recorded during the first half of 2019.

Dubai International’s top city destination was London with 1.7 million passengers, followed by Mumbai and Riyadh, with 1.2 million each. 

The strong performance during the first half of the year means Dubai Airports, which operates Dubai International, now expects 85 million passengers to be handled by the airport by the end of this year – just 1.6 per cent lower than its annual traffic in 2019.

Like Dubai International, Abu Dhabi International airport reported solid figures for the first half of this year. Passenger traffic grew to 10.2 million travellers, an increase of 67 per cent on the 6.1 million passengers handled during the same period last year.  

The cities with the highest passenger traffic included Mumbai with 461,081 customers, London with 374,017, Delhi with 331,722, Kochi with 316,460 and Doha with 261,117.

Sharjah International airport’s passenger numbers also increased during the first half of 2023. It received over 7 million passengers in the first half of the year, an increase of 24 per cent compared to the same period last year.

Airport projects

The rebound in air travel supports the business case for airport projects in the UAE after several years of relative inactivity.

According to regional projects tracker MEED Projects, there have been $340m of airport-related construction projects over the past five years, a significant drop from the more than $2bn registered for the previous five-year period.

In Dubai, plans are being considered for restarting the AED120bn ($33bn) expansion of Al-Maktoum International airport.

Located in the Jebel Ali area close to the Abu Dhabi border, the facility is Dubai’s second airport. It began operations in 2010 and has long been planned to ultimately replace Dubai International as the emirate’s primary airport. 

The expansion of Al-Maktoum International airport, also known as Dubai World Central (DWC), was officially launched in 2014. It involves building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

An initial phase, which was due to be completed in 2030, will take the airport’s capacity to 130 million passengers a year. Altogether, the development will cover an area of 56 square kilometres.

Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

Al-Maktoum airport is needed because Dubai International is unable to be expanded significantly. One of the key future challenges is runway capacity. It only has two runways, and with built-up urban areas on either side of the airport, there is no available land to build new runways on. 

Another driver for the project is regional competition. Dubai International is the region’s largest airport, and Emirates is the region’s largest airline. Plans in Saudi Arabia now challenge that position.

At the end of last year, the kingdom launched the masterplan for King Salman International airport in Riyadh, which aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. Earlier this year, it launched a new airline known as Riyadh Air.

Midfield terminal

Abu Dhabi International airport is at a different stage of development. In August, Abu Dhabi Airports announced that the Midfield Terminal building would begin operations in early November 2023.

Now known as Terminal A, the project will transform operations at the airport. It has 742,000 square metres of built-up area and can handle 45 million passengers a year, process 11,000 travellers an hour and operate 79 aircraft at any given time. 

The project has been under construction for over a decade and has faced multiple delays.

In 2021, Abu Dhabi Airports terminated its contract with the joint venture of Turkey’s TAV, Lebanon’s Consolidated Contractors Company (CCC) and the local Arabtec Construction for the construction.

The joint venture was awarded the AED10.55bn contract to build the Midfield Terminal building in June 2012, and sources in the market say the final contract value is closer to AED20bn.

Local contractor Trojan managed the remainder of the works for the project.

An expansion of Sharjah International airport, meanwhile, is planned to increase its capacity from eight to 20 million passengers a year. Sharjah Civil Aviation Authority is expected to award the estimated AED2.5bn main construction works package by the end of this year.

The investments planned for the UAE’s airports and rising traffic volumes mean the country will remain an important aviation hub in the future. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11210562/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aldar announces $18bn UAE contract awards in 2025

    4 February 2026

    Abu Dhabi-based real estate developer Aldar Properties has announced the award of construction contracts totalling over AED66bn ($18bn) in 2025.

    These awards span a diverse portfolio of residential, commercial, infrastructure and logistics projects across the UAE. 

    The newly awarded contracts cover large-scale residential communities, strategic infrastructure, and Grade A commercial and logistics assets across key growth locations nationwide.

    Collectively, the projects will deliver thousands of new homes, modern commercial and logistics facilities, and critical infrastructure that respond to evolving market demand and advance sustainable urban development.

    In Abu Dhabi, contracts were awarded across a range of projects for Aldar and the local government. On Saadiyat Island, local contractor Fibrex Construction was appointed for Mamsha Gardens and Nobu Residences, while Dubai-based Dutco Construction Company was awarded the main contract for The Arthouse.

    On Fahid Island, Indian firm Shapoorji Pallonji was awarded the main contract for Fahid Beach Residences.

    Beijing-headquartered China State Construction Engineering Corporation and Abu Dhabi’s Western Bainoona Group, Nael & Bin Harmal Hydroexpert, Yas Projects, Said Bin Darwish and Noor Al-Sahara General Contracting were also awarded contracts across a number of national housing and infrastructure projects during 2025.

    In Dubai, Aldar continued to deliver across major residential and logistics developments. Sharjah-based Ginco General Contracting was contracted to develop villas and townhouses at Athlon.

    Turkish firm Nurol was awarded the main works package for Verdes by Haven.

    Kuwait’s Mohammed Abdulmohsin Al-Kharafi & Sons was awarded the villas package for The Wilds, and local firm Al-Nasr Contracting Company was awarded the infrastructure works.

    In the industrial and logistics segment, Dubai-based Group Amana was awarded the development of Aldar Logistics Centres at National Industries Park.

    In Ras Al-Khaimah, Shapoorji Pallonji was awarded contracts for the Al-Marjan Beachfront development.

    Aldar said in a statement: “In line with the UAE’s National In-Country Value (ICV) programme, almost 45% of the total value of projects awarded in 2025 is expected to be recirculated into the local economy, supporting economic diversification, industrial development and job creation across the UAE.

    “Aldar continues to embed ICV principles across its procurement processes by prioritising UAE-based contractors and suppliers and supporting the growth of domestic capabilities across the construction value chain,” the statement added.

    READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15568462/main.jpg
    Yasir Iqbal
  • Kuwait signs 25-year offtake for Al-Zour North IWPP

    4 February 2026

    Kuwait has signed a 25-year energy conversion and water purchase agreement for the Al-Zour North independent water and power plant (IWPP) phases two and three.

    The deal was signed by Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation (GIC) with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the project.

    The signing marks a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 million imperial gallons a day of desalinated water to Kuwait’s supply network.

    Kuwait recently established a new public shareholding company to manage the next stages of the project.

    The Gulf Alliance for Power & Water Company will be responsible for the construction, implementation, management, operation and maintenance of Al-Zour North IWPP phases two and three.

    In August, Acwa, formerly Acwa Power, and GIC signed a contract to develop the project, which will be the country’s largest IWPP. The consortium will hold 40% of the project company through Al-Zour Kuwaiti Second & Third Holding Company.

    The Public-Private Partnership Authority will hold 10% on behalf of government entities, while 50% will be offered to Kuwaiti citizens through a public subscription process.

    The project is owned by the Kuwait Authority for Partnership Projects and the Ministry of Electricity, Water & Renewable Energy.

    The scheme will be developed under a build-operate-transfer model. The newly signed offtake agreement secures revenue for a 25-year period.

    China’s Sepco3 is the engineering, procurement and construction contractor for the project.

    READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565047/main1611.jpg
    Mark Dowdall
  • Qatar’s Ashghal outlines Q1 2026 project plans

    4 February 2026

    Qatar’s Public Works Authority (Ashghal) has outlined plans to undertake 67 projects as part of its development strategy for 2026. 

    The majority of the upcoming projects cover sectors such as buildings, highways, roads, water and drainage.

    The projects to be undertaken in the first quarter of this year include:

    1. Access road to the Qatari Emiri Air Defence command building
    2. Call-off agreement for road and infrastructure works
    3. Carrying out all recommended work to ensure the necessary approvals from the Civil Defence Authority are obtained
    4. Remaining works of C/2020/60 RIW for junctions & RA in various areas of Greater Doha: phase 9
    5. Remaining works of C/2020/124 R & I in Mebaireek (Zone 81): packages 1&2
    6. Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    7. Modifications and additions to existing schools: packages 2-8
    8. Construction of Mekeines – Umm Bab Link Road
    9. Construction of Msheireb offices
    10. Construction of parking lots for areas 2 and 3 and modification of road infrastructure, the bus station and Gate 6
    11. Remaining works of C/2018/114 Umm Al-Dome improvement
    12. Remaining works of C/2019/90 access roads for Umm Ghuwailina 
    13. Remaining works of C2017/86, roads surrounding Al-Bayt Stadium 
    14. Remaining works of C2018/7 & C2017/118, Al-Kheesa foul sewer: packages 1&2
    15. Consultancy services for MM building damages investigation and repairs recommendations
    16. Consultancy services for modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    17. Consultancy services for survey works, GIS, CAD and BIM on a call-off basis
    18. Consultancy supervision services for construction of Mekeines – Umm Bab Link Road
    19. Demolition and construction of two schools (Simaisma Junior School, Simaisma High School): package 3
    20. Demolition of decommissioned facilities: phase 6
    21. Design and build for water treatment plant (including treated sewage effluent plant for UDST)
    22. Design and construction of pedestrian crossings: phase 4
    23. Design of external administrative buildings for the protection and nature reserves sector, and the Turtle Protection Centre
    24. Design and build of a truck stop outside the wall of the medical quarry in Al-Ruwais
    25. Design, supply and install the new sparkling lights for the Arch 5/6
    26. Execution of Central Doha and Corniche Package: two remaining works
    27. Foul sewer GAP tunnel 1.6 kilometres long, diameter 600-800 mm at Doha North
    28. Framework contract for the road link works in several locations across Qatar 
    29. Industrial area STW asset improvement works: phase 2 AM24-0032
    30. Modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    31. New consultancy supervision services
    32. On-call contract for geotechnical, environmental & structural tests and evaluation services
    33. Operational insurance – property all risk and third-party liability
    34. Package 1: design and build of strategic SGW drainage Western Tunnels – Southern area – C878/S1
    35. Paving and house connection for existing plot at Nuaija Zone 44
    36. Pilot deep wells construction
    37. PPP pre-contract framework – future work orders
    38. Pre-contract PCS for centralised sewage solids treatment and management facility
    39. Pre-contract PCS for Strategic Qatar Integrated Drainage Master Plan Update 2026 C767/3
    40. PSA for Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    41. PSA roads and infrastructure in Wadi Al-Banat (Zone-70)
    42. PSA roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    43. R&I in southwest of Al-Wukair (DW086 – DW092)
    44. Refurbishment, reinstatement and repair works for strategic location in Qatar: phase 9 (QN) AM22-1011
    45. Roads and infrastructure in Al-Kheesa
    46. Roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    47. Roads and infrastructure in Rawdat Abal Heeran: package 4
    48. Roads and infrastructure in Sailiya Al-Attiyah: package 1
    49. Roads and infrastructure in Sailiya Al-Attiyah: package 2
    50. Roads and infrastructure north of Smeisma: package 4
    51. Secondment contract for professional staff for the Highway Projects Department
    52. Secondment contract for professional staff for Roads Project department: phase 2
    53. STW rehabilitation and maintenance: Qatar West phase 2 AM25-0020
    54. Supervision for community college projects
    55. Supervision for design and construction of pedestrian crossings: phase 4
    56. Supervision for roads and infrastructure for Qatar Armed Forces
    57. Supervision for roads and infrastructure for Qatar Armed Forces – A
    58. Supervision for the design and build of a new communications room and technical store for Al-Shahaniya radio station
    59. Supervision for foul sewer GAP tunnel – 1.6km long, diameter 600-800 mm – at Doha North
    60. Supervision of deep injection wells enabling works – pilot at Al-Thumama
    61. Supervision of the Ministry of Education and Higher Education warehouses project
    62. Supply of equipment and spares for DNOM AM21-192
    63. Supply of pumps for DNO&M workshop section AM25-0075
    64. Surrounding roads around North Camp
    65. Surrounding roads around Doha Air Base
    66. TSE rehabilitation and maintenance: Qatar West phase 2 – AM25-0031
    67. TSE renewal programme and assets improvements: Qatar South phase 2 – AM22-132
    Qatar market overview

    Qatar’s next construction cycle is starting to take shape. In recent months, the country has made progress on several high-profile, large-scale infrastructure schemes that are set to inject fresh momentum into Qatar’s construction pipeline and, crucially, translate into years of contract flow for local contractors, suppliers and service firms.

    The largest of these schemes includes the proposed high-speed rail line connecting Riyadh and Doha, the revived Friendship Bridge to Bahrain and a planned road corridor linking Qatar with the UAE.

    For the construction industry, these moves signal that the state is ready to shift from post-World Cup consolidation to a new, longer-term buildout anchored in regional connectivity.

    That longer-term view is especially important after a flat 2025, when contract awards slipped to just over $2bn — the weakest annual total in the past five years — and many in the industry felt a widening gap between plans and procurement.

    The mood has now shifted. With about $64bn-worth of projects in the pipeline, Qatar is not short of project opportunities.

    The next phase has the potential to sustain contractors and the wider supply chain in the near term, while bringing a more predictable rhythm back to the market as these programmes are broken into packages and move to tender.

    MEED’s February 2026 report on Qatar includes:

    > COMMENT: Qatar’s strategy falls into place
    > GVT & ECONOMY: Qatar enters 2026 with heady expectations
    > BANKING: Qatar banks search for growth
    > OIL & GAS: QatarEnergy achieves strategic oil and gas goals in 2025
    > POWER & WATER: Dukhan solar award drives Qatar's utility sector
    > CONSTRUCTION: Infrastructure investments underpin Qatar construction

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565036/main.jpeg
    Yasir Iqbal
  • Dar Global seeks firms for Dubai Trump tower and hotel

    4 February 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia-headquartered real estate developer Dar Global has asked contractors to express interest in a contract to build the Trump International Hotel and Tower project in Dubai.

    Dar Global is developing the project in collaboration with the US-based Trump Organisation.

    The 80-floor tower will be built next to the Shangri-La Hotel on Sheikh Zayed Road.

    The tower will be among the tallest in Dubai, with an estimated height of approximately 350 metres.

    In December last year, Dar Global appointed Dubai-based Edrafor Emirates to undertake the foundation works on the project.

    Dar Global is also developing the estimated $1bn Trump Plaza Jeddah project in Saudi Arabia. 

    In November last year, Abu Dhabi-based contractor Arabian Construction Company won the estimated SR2bn ($532m) main contract to build the Trump Tower Jeddah.

    The project comprises a mixed-use development of apartments, townhouses, offices, retail, food and beverage offerings, and a 4,000-square-metre club.

    Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.

    According to an official statement, the project is the region’s first Trump International Hotel & Tower and represents the fifth collaboration between Dar Global and the Trump Organisation.

    Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe. It has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.

    It completed three developments – the Urban Oasis and Da Vinci towers in Dubai and the Sidra gated community in Bosnia – in 2023.

    The company collaborates with global brands including Missoni, W Hotels, Versace, Elie Saab, Automobili Pagani and Automobili Lamborghini.

    READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15564796/main.jpg
    Yasir Iqbal
  • Elon Musk-backed firm signs Dubai Loop construction deal

    4 February 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) has signed an agreement with Elon Musk-backed firm The Boring Company to begin construction of the Dubai Loop transportation system.

    The agreement was signed on the sidelines of the World Governments Summit in Dubai on 3 February.

    The first phase of the project comprises a 6.4-kilometre (km) route with four stations, linking the Dubai International Financial Centre (DIFC) and Dubai Mall.

    The stations will be located at DIFC 2, ICD Brookfield Place, Dubai Mall Zabeel Parking and Burj Khalifa.

    The first phase is expected to cost about AED565m ($154m).

    This phase is anticipated to be delivered within one year following the completion of design work and other preparations.

    The tunnelling works are expected to begin in the second half of this year.

    Next phase

    The second phase of the project will connect the Dubai World Trade Centre and DIFC with Business Bay.

    The tunnels will extend up to 22km and include 19 stations.

    The total cost of the project across both phases is expected to be around AED2bn ($545m), with completion scheduled within three years.

    In a statement published by the Emirates News Agency (Wam), the RTA said the pilot route is expected to serve around 13,000 passengers a day. The full route is projected to have a total capacity of about 30,000 passengers a day.

    The RTA and The Boring Company signed a memorandum of understanding on the sidelines of the World Governments Summit in Dubai in February last year to explore the development of the Dubai Loop transportation system.

    The Dubai Loop is expected to be similar to The Boring Company’s Las Vegas Convention Centre (LVCC) Loop project. The LVCC Loop is a 2.7km underground tunnel system that connects different convention centre halls, reducing walking time across the site to about two minutes.

    The LVCC Loop has been in operation since 2021. It uses Tesla Model 3 cars to carry passengers between five stations. The Boring Company began construction in November 2019 at an estimated cost of $49m.

    READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15564682/main.jpg
    Yasir Iqbal