UAE has a flourishing tourism industry. As a result of the same there are other sectors which are flourishing. One of them is the aviation industry. The air transport to and fro from UAE has a major impact on the economy of the country. The impact on a country’s economy is usually measured by the role an industry has to play in the GDP, the jobs it creates and the supply chain.
The aviation industry of the UAE is expected to continue the boom it has created in the last decade according to economists. The Dubai airport is expected to have a fleet of 79 million this year and become the busiest airport in the world leaving London’s Heathrow. The time zone advantage and Dubai’s good access to rest of the world has made it more accessible creating direct positive impact on the aviation, tourism and hospitality sectors.
The Footprint of Aviation Industry on UAE’s GDP
The aviation industry has always been a contributor to the GDP of UAE creating jobs and bringing in talent. From 6.2% in 2011 to approx. 15% in the year 2015, the contribution of the aviation sector has increased by almost 4% every year.
Talking about jobs, currently there are about 250,000 direct jobs in the aviation sector and 225,000 indirect jobs according to Laila Al Muhairi who is the Executive Director for Strategy and International Affairs at the General Civil Aviation Authority, UAE.
The direct job in the industry comprises of some of the jobs like:
- Airport operators
- Airlines that includes flight and cabin crews, executives, ground services, check-in, training, maintenance staff
- Air navigation service providers
- Civil aerospace
- Other on-airport
The indirect jobs include the jobs created by those in suppliers to the airline industry. Fuel suppliers, construction companies building airports, retail outlets in the airport etc. are all contributors to the indirect jobs.
Aviation Expansion: Further Lifting the UAE Economic Growth
The government estimates about 32% contribution of the airline industry towards the GDP of the UAE by the year 2020. This also implies that the number of jobs in airline industry in the UAE is going to go up to 7, 50,000 jobs.
Jeff Johnson, VP of Boeing International and president of Boeing Middle East expects the aviation sector of UAE to stand next to USA or China.
Catalytic Effect of this Expansion on Tourism
The aviation sector is one sector that is the heart and soul of a number of global businesses and tourism. The expansion of the airline industry has a direct impact on the tourism sector, further adding to the GDP of the economy. Tourism, for both leisure and business purpose makes a huge contribution to the economy. The travel and tourism industry is directly catalysed by the expansion in the aviation department.
Challenges in the Aviation Industry
The expansion also faces some challenges that the aviation sector of the UAE faces. This includes airspace management, safety, finance, human skills and infrastructure.
The expansion has visions a growth of 5% every year and at that rate by the year 2030 the country’s GCAA abbreviated for General Civil Aviation Authority is expected to handle a movement of 5100 planes per day that marks about a double of what the GCAA handled in 2014.
How to Achieve the Targeted Expansion?
UAE is seeking out to other Middle Eastern countries support to achieve the desired air movement by the year 2020.
The Last Words
Post the oil era, the overall well-being of the UAE depends highly on the aviation sector. The strategies and alliances have created a room for the UAE to be a strong player in this highly volatile market.
Akansha Arora is a professional writer and blogger who loves to pen down her views on a number of topics that interest a reader. She writes keeping in mind the current scenarios and wishes to keep her readers well informed. You can follow her on google.com/+AkanshaArora2112