Dubai's Busy Airport Sees Passenger Traffic Drop 40% in 2021

FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
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Dubai's Busy Airport Sees Passenger Traffic Drop 40% in 2021

FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)
FILE - In this March 7, 2021 file photo, a woman enters the face and iris-recognition gate to board a plane, during a media tour at Dubai Airport, in the United Arab Emirates. (AP Photo/Kamran Jebreili, File)

Dubai International Airport, the world's busiest airport for international travel, handled some 40% less passenger traffic in the first half of 2021, compared to the same period last year, its chief executive said Wednesday.

The decline came as more contagious coronavirus variants cut off the hub's biggest source markets and continued to clobber the global aviation industry.

However, CEO Paul Griffiths remains optimistic for the crucial east-west transit point as authorities gradually re-open Dubai's key routes to the Indian subcontinent and Britain, reported The Associated Press.

The 10.6 million passengers that passed through the airport over the past six months “is still very positive," Griffiths told The Associated Press. “I think coupled with the restrictions easing that we’re now seeing, (it) will bode very well for a satisfactory end to the year.”

The airport, which saw 86.4 million people squeeze through before the pandemic hit in 2019, has held the title of the world’s busiest since it beat out London's Heathrow seven years ago. It even kept the crown as the virus turned the world’s biggest airports into massive voids. But the once-teeming terminals still have a long way to go before seeing pre-pandemic passenger levels.

The hopes stoked by the United Arab Emirates' speedy vaccination campaign took a hit as the delta variant emerged, prompting familiar border closures and capacity cuts, and hurting the mammoth airport, hub of long-haul carrier Emirates. Dubai World Central, the Gulf city’s second airport that went out of use for commercial flights during the pandemic, appears to be a parking lot for Emirates’ iconic fleet of double-decker Airbus A380s.

Although the UAE recently lifted an entry ban on India, Pakistan, Nepal and Sri Lanka, which are home to most of the vast foreign workforce in the federation, stringent vaccination requirements still bar many from boarding flights to the country.

“All of those South Asian markets are incredibly important to Dubai, they’re a very important transit opportunity, of course, as people go to all parts of northern Europe," said Griffiths. “It’s very important we get those traffic flows back.”
There are reasons to expect a rebound, Griffiths added. One of the airport's two main terminals, mothballed amid the pandemic, returned to use last month to prepare for an influx of holiday-makers escaping wintry weather and attending the World Expo in October.

And after months of frustration and confusion, the UK last week removed the UAE from its “red list” that ordered all travelers to quarantine for 10 days in costly, government-approved hotels. The upgrade to “amber” elicited a strong sigh of relief throughout the federation of seven sheikhdoms, home to some 120,000 British expats. London was ranked as the top destination city for Dubai’s airport in 2020, with 1.15 million customers.

Griffiths declined to put a number on the financial hit, but said the “loss of traffic (to the UK) has had a very, very significant impact on the economy of both countries.”
So thrilled was Emirates about the flight resumption that the airline plopped a woman on the pinnacle of the tallest tower on the planet, Burj Khalifa, and filmed her raising placards that implored Brits to fly Emirates.

The stakes are indeed high for Dubai, where the economy thrives not on oil, like in other Gulf Arab sheikhdoms, but on travel and tourism. Emirates remains the linchpin of the wider empire known as “Dubai Inc.,” an interlocking series of businesses owned by the city-state.

There are signs of looming uncertainty, with the airport yet to hire back any of the 5,000 employees it furloughed during the devastation of the pandemic last year. But when asked whether Dubai Airport would hold onto its title — one of many prized superlatives in the extravagant emirate home to the world's tallest building and biggest mall — Griffiths didn’t miss a beat.

“I have no doubt in my mind,” he said. “We’re gearing up to expect a huge surge in volume."



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.