Dubai Airport Could Break Passenger Record This Year, Says CEO

Dubai Airports' official forecast for this year stands at 88.8 million passengers. (AFP)
Dubai Airports' official forecast for this year stands at 88.8 million passengers. (AFP)
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Dubai Airport Could Break Passenger Record This Year, Says CEO

Dubai Airports' official forecast for this year stands at 88.8 million passengers. (AFP)
Dubai Airports' official forecast for this year stands at 88.8 million passengers. (AFP)

Dubai's air hub has "every chance" of breaking its record for passenger traffic this year after surpassing pre-pandemic levels in 2023, Dubai Airports' CEO told AFP on Monday.

Dubai International, the world's busiest airport for international passengers for nearly a decade, hit 87 million visits in 2023, beating the 2019 figure of 86.4 million despite the Gaza war, new figures showed.

Chief executive Paul Griffiths cited early recovery in Dubai -- the United Arab Emirates' business and financial center -- from the pandemic and a quick rebound in airport staffing levels as key factors.

"We were ready sooner. We were back to 100 percent capacity much sooner, and as a result, our traffic has rebounded far more quickly," he said, adding that Dubai's record of 89.1 million passengers, set in 2018, could be surpassed this year.

"I think there's every chance of going above it. It could be a new record," Griffiths said. "I've had a peek at the January numbers and let's say it gives me some cause for optimism."

Dubai Airports' official forecast for this year stands at 88.8 million passengers, just shy of the record, despite Israel's war against Hamas which began in October.

"We've demonstrated the absolute resilience of the network that we operate," said Griffiths, adding that Dubai's airport serves 104 countries via 102 airlines.

"If there is a bit of a dip in demand from one destination or point of origin, then that tends to be compensated by the rest of the network filling the space," he added.

Cargo traffic was up 20.4 percent in the last quarter, perhaps because of attacks on shipping through the Red Sea by Yemen's Houthis, Griffiths said.

He would not discuss security arrangements for the airport, beyond saying they were "well developed".

Griffiths said the growth in traffic to and from fast-developing Saudi Arabia had been "phenomenal", with Riyadh now Dubai's second busiest route behind London.

"If you look at the growth of travel and tourism across the world, we are only scratching the surface in this region," he said.



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.