Middle East Airport Projects Garner Investor Interest

Several new airport projects in the Middle East are drawing attention to a region where many companies are eager to invest in aviation, according to ACI World Director General Luis Felipe de Oliveira.

Speaking to Routes at the sidelines of the Dubai Airshow earlier this month, he discussed the significant airport investments being made in the region.

“In Saudi Arabia, we see the expansion at Riyadh Airport and there is also Neom Bay, a completely new airport with a different approach,” de Oliveira said. “The near future will demonstrate the importance of this project and how it will change the airport environment.”

Neom, the “smart city” Saudi Arabia is building in the northwest of the country, is currently served by three carriers, with Saudia serving Dammam, Jeddah, Riyadh and London Heathrow, Flyadeal operating to Dammam; and Flydubai serving Dubai. De Oliveira said the airport is poised to become an international hub, supporting the growth of surrounding urban and tourism developments.

Aside from Saudi Arabia, de Oliveira noted the opening of the new terminal in Abu Dhabi and ongoing airport construction in Doha, Qatar, even after the conclusion of the 2022 Football World Cup.

He emphasized the continued growth in the region, highlighting Dubai’s evolution from being solely a connection hub to also serving as a destination point, with over 50% of passengers now coming for the destination rather than just connecting flights.

De Oliveria added that many airports in the Middle East, backed by financial resources, are willing to invest, mirroring a similar trend among airlines. The governments have a greater appreciation for aviation’s positive impact on social and economic development, he said.

“Beside Europe, there are many countries where aviation is not so appreciated,” de Oliveria explained. “Some governments take the decision to not see aviation as a positive sign for social and economic development.”

Speaking about ongoing conflicts in the Middle East, such as the war between Israel and Hamas, de Oliveira acknowledged that they would affect traffic, including to neighboring countries such as Jordan and Egypt. However, he highlighted that the Dubai Airshow recorded high visitor numbers, indicating resilience in the face of conflicts in the region.

A study published by ACI World on Nov. 21 indicated that 54% of respondents traveling for leisure and personal reasons globally reported that economic and geopolitical events have influenced their travel plans in the past year. However, the ASQ 2023 Global Traveller Survey also found that 56% of respondents are planning to travel within the next three months, compared to 51% the same time last year.

“The findings show that while travellers report a high perceived impact of the economic situation on their travel habits, they have never been more eager to travel,” de Oliveira said. “While the global economy continues to face uncertainty, the air travel industry is moving in the right direction with passengers firmly at the heart of airports’ strategies.”