Aviation Sector Contributes Almost 30% To Dubai’s GDP, Latest Report Reveals

The Gulf Cooperation Council’s (GCC) GDP often hinges on the historic oil and gas sectors. Dubai Airports and Emirates Group published promising projections on Dubai’s booming aviation sector. The study compiled by global research firm Oxford Economics, includes a detailed assessment of direct economic activity generated by the aviation sector, indirect activity generated through the sector’s supply chain, and induced activity supported through wage-funded consumption by the local aviation workforce.

Emirates Group and @DubaiAirports have released an economic impact study reaffirming aviation’s role as a major engine propelling Dubai’s economy, including adding USD $37.3 billion to Dubai’s economy in 2023, equivalent to 27% of GDP.

Read more at https://t.co/mwVNjaYQJt pic.twitter.com/JU7d3HfMQQ

— Emirates (@emirates) October 24, 2024

Tourism coupled with aviation to supercharge Dubai’s economy 

The study also assesses the catalytic impact of tourism spending facilitated by the aviation sector in Dubai. The Emirate’s aviation sector singlehandedly contributed AED137 billion to Dubai’s economy in 2023.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline & Group, and Chairman of Dubai Airports, commented on the key projects that drive this staggering injection in Dubai’s gross value added (GVA). “Our ambitious plans for Dubai World Central – Al Maktoum International Airport, and our ongoing investments to expand capacity at Dubai International, will unlock further economic opportunities by supporting the projected demand for air transport.” 

Previous aviation released by Oxford Economics in 2014 outlined Dubai’s aviation sector contributed to 27% of Dubai’s GDP and supported 417,000 jobs. The 2023 report reveals growth in the sector remains stable, while the GVA has increased in real terms and diversification in aviation is likely to impact the wider economy. 

Aviation-fueled innovation has supercharged prosperity in adjacent sectors. Dubai remains one of the most frequented destinations in the world, with visitors staying an average of 4 nights in the emirate in 2023, spending an estimated AED4300 on hotels, restaurants, attractions, and shopping. This trend has funneled nearly AED66 billion in tourism-led monetary injections in 2023 in Dubai. 

The next six years look promising, as conservative forecasts suggest that aviation-facilitated tourism spending will contribute AED43 billion in GVA, or 8.5% of Dubai’s GDP, supporting 329,000 jobs. This growth is directly anchored on the consequent growth of Dubai’s tourism sector, which will bring in AED63 billion in GVA, capturing one in eight jobs in Dubai.