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.
Exclusive from Meed
-
Read the October 2026 MEED Business Review30 September 2026
-
Aramco receives interest for major gas processing plant30 September 2026
-
Libya refinery expected to be worth more than $600m30 September 2026
-
Joint venture wins $230m Ras El-Hekma buildings30 September 2026
-
Neom tenders Oxagon freight rail design30 September 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Read the October 2026 MEED Business Review30 September 2026
Download / Subscribe / 14-day trial access For all the talk of cancellations and cutbacks, Neom is still building – and its biggest completed project to date offers a clue to where the $500bn gigaproject is heading. Our October Agenda feature examines how Oxagon is moving to the centre of Neom’s strategy, as investment shifts towards projects with the potential to generate tangible commercial returns, from green hydrogen and ports to AI data centres and logistics infrastructure.
Read the full analysis in the October issue of MEED Business Review.As Neom reshapes its priorities, Saudi Arabia’s wider project market continues to show resilience. Contract awards have reached $68bn in 2026, despite regional conflict and economic uncertainty, with activity spanning energy, infrastructure, power and the future economy.
But with $91.5bn of projects completed this year, new awards will be crucial to maintaining momentum into 2027.
This edition also includes MEED’s 2026 power developer ranking, revealing the companies driving the region’s rapidly expanding power market.
The issue also explores key trends shaping the region, from AI’s growing demands on grid capacity and the implications of ICE Futures Abu Dhabi’s wind-down for Gulf commodity markets, to how the Hormuz crisis is redirecting oil companies’ focus to North Africa. Our Leadership feature asks whether the future city really needs to hang above the ground.
We hope our valued subscribers enjoy the October 2026 issue of MEED Business Review.

Must-read sections in the October 2026 issue of MEED Business Review include:
> AGENDA: Oxagon takes centre stage at NeomINDUSTRY REPORT:
MEED’s 2026 power developer ranking
> Regional power market diversifies
> Battery storage broadens IPP market> POWER: AI is creating a grid capacity problem
> LEGAL: What IFAD’s wind-down means for Gulf commodity markets
> OIL: Oil companies focus on North Africa amid Hormuz crisis
> LEADERSHIP: The future city does not need to hang above the ground
> SAUDI ARABIA MARKET FOCUS:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflict
> DATABANK: Saudi data indicates project spending shift> MEED COMMENTS:
> Dubai Inc steps in as developers turn cautious
> Saudi Arabia redirects towards AI
> Kuwait plans biggest oil and gas contract award in 10 years
> Saudi Arabia battery storage awards provide fresh lift> GULF PROJECTS INDEX: Saudi Arabia and UAE lead Gulf index gains
> AUGUST 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The boomers’ last act
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20134595/main.gif -
Aramco receives interest for major gas processing plant30 September 2026

Saudi Aramco has received expressions of interest from contractors to participate in the main tendering exercise for a project to expand the Alhada gas processing plant, located about 85 kilometres northwest of Jubail in Saudi Arabia’s Eastern Province.
The Alhada gas processing plant expansion is critical to Aramco’s goal of increasing gas production capacity by 80% by 2030 from a 2021 baseline.
Aramco issued a solicitation of interest document for the main tendering exercise in early September, with contractors submitting responses by 17 September, sources told MEED.
The engineering, procurement and construction (EPC) scope of work has been divided into three main packages, sources said.
The first EPC package relates to the main gas treatment facilities, primarily three processing trains, along with:
- Three acid gas removal units
- Triethylene glycol (TEG) dehydration unit
- Two high-pressure and two low-pressure flares
- Two flare gas recovery units
- Two T&l flares
- Two burn pits
- A digital twin
The acid gas removal units will treat sour gas by removing hydrogen sulphide and carbon dioxide to produce sales gas, as well as acid-gas feed for the downstream acid gas enrichment unit and sulphur recovery unit.
The acid gas removal units will also process gas from the flare gas recovery units through a dedicated amine contactor to meet specifications for use as fuel gas. The TEG dehydration unit will then remove water from the treated gas to meet sales-gas specifications.
The project’s second EPC package covers the sulphur recovery units. The third package involves inlet channels for monoethylene glycol, as well as common utilities and supporting structures.
ALSO READ: Contractors express interest in sixth Jafurah expansion phase
https://image.digitalinsightresearch.in/uploads/NewsArticle/20127671/main4900.jpg -
Libya refinery expected to be worth more than $600m30 September 2026

The main contract for Libya’s planned South Refinery project is expected to be worth more than $600m, according to industry sources.
The project, located in Ubari in southern Libya, has gained momentum over the past year. The main contract is expected to be procured under an engineering, procurement and construction (EPC) model.
In March, US-based engineering company KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the project.
Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the project’s EPC phases.
The EPC work is expected to take 50 months, and the facility will be designed to process 30,000 barrels a day (b/d) of crude oil.
The refinery is expected to produce:
- Propane and butane for domestic and industrial uses
- Gasoline
- Kerosene
- Diesel
- Fuel oil
In March, KBR said that the project was aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.
Libya currently operates five main refineries with a combined nameplate capacity of 380,000 b/d, but actual throughput is closer to 180,000 b/d due to poor maintenance and damage from military clashes.
In addition to the South Refinery project, Libya also plans to upgrade the Zawiya refinery and carry out projects at the Serir, Brega, Tobruk and Ras Lanuf refineries.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20124329/main.jpg -
Joint venture wins $230m Ras El-Hekma buildings30 September 2026
A joint venture of UK-based Innovo Build and Egypt’s Redcon Construction has won a contract worth about E£12bn ($230m) to carry out infrastructure and construction works for the DP03 East package of the Wadi Yemm development at Ras El-Hekma on Egypt’s North Coast.
Wadi Yemm is being developed by the UAE’s Modon Development as the first phase of its Ras El-Hekma masterplan, which will comprise 17 planned districts.
DP03 East has a built-up area of 323,000 square metres and is scheduled for completion within 21 months.
The scope of work includes more than 660 residential units – comprising standalone villas and townhouses – as well as public service areas, lakes, a commercial mall, landscaping and roadworks.
The delivery of units at Wadi Yemm is expected to begin in the third quarter of 2029.
Ras El-Hekma is located on a spur of land on Egypt’s northern Mediterranean coast, about 240 kilometres west of Alexandria.
Abu Dhabi-based holding company ADQ appointed Modon Holding as master developer for the Ras El-Hekma project in 2024. Modon will oversee the overall development, which covers more than 170 million square metres (sq m).
Modon will develop the first phase, covering 50 million sq m. The remaining 120 million sq m will be developed in partnership with private developers, under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20123189/main.jpg -
Hassan Allam wins $1bn Cairo mixed-use project deal30 September 2026
Grova Developments, the real estate development arm of Egypt’s Hassan Allam Holding, has awarded Hassan Allam Construction a $1bn contract to deliver the Grova Westfields project in West Cairo.
Hassan Allam Construction’s scope of work includes a 150-key five-star hotel, branded residences, luxury villas and apartments, as well as infrastructure and landscaping works.
The project spans about 1.2 million square metres and is being developed in partnership with the Egyptian Kuwaiti Company for Real Estate Development.
Broadway Malyan has been appointed to lead the master planning and architectural design.
In October last year, Hassan Allam Construction announced that it had won a $550m contract to build another mixed-use development spanning more than 128 hectares in New Cairo.
That development comprises villas, townhouses, commercial and office space, mixed-use buildings, infrastructure and other associated facilities.
Hassan Allam Properties is co-developing the project with Grova Developments.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20123048/main.jpeg