Gulf countries are using the twin factors of geography and oil-related profits to embark on mammoth programmes of airport development and expansion. In excess of $38 billion is being injected into projects to either build entirely new hubs, or expand upon existing sites within the six countries belonging to the Gulf Cooperation Council (GCC). Several days ago, Saudi Arabia declared that it alone was set to invest approximately $5.4 billion into the airport sector. Already, 27 airports are located within the nation – three of which are international.

Plans have now commenced to upgrade the outmoded King Abdul Aziz airport – located in Jeddah. This airport serves huge numbers of passengers each year – many of them pilgrims attracted to the region’s Muslim sites. According to Abid Riaz – an aviation analyst working at the investment bank EFG-Hermes – "The region is trying to catch up with the worldwide development of air travel... Record-high oil prices help this expansion."

Within this, Mr Riaz added, the fact that some countries in the Gulf region are building enticing corporate environments is encouraging more people to them, and driving the demand for additional airline services.

In addition to Saudi Arabia, Oman has also recently made a significant pledge in respect of the airport sector: its $3 billion plan sees three entirely new airports built, and two existing sites boosted. Of the present airports set for expansion, Seeb International Airport, located in Muscat, it forecast to have a capacity to handle 12 million passengers by 2010 - compared to the 4.7 million that passed through last year.

Standing proud above both Saudi Arabia and Oman, however – Dubai is the city set to invest the largest into its own airport regeneration scheme. Within a huge $15 billion project, the prime Dubai International Airport will see the construction of a third terminal, and two additional concourses. With 28.7 million passengers having used it in 2006, Dubai International is already the busiest airport in the region.

After the expansion is complete, Dubai’s passenger handling capacity will skyrocket to 70 million a year. However, this element only constitutes around a third of the $15 billion investment. The balance – around $10 billion dollars – will fund the construction of a brand new airport which, with six runways, will be the largest in the world. To be called the Jebel Ali airport, it will be able to support the arrival/departure of 150 million passengers on an annual basis.

Speaking at the recent Paris Air Show – the civil/defence showcase event held biannually – Sheikh Ahmed bin Saaed al-Maktoum – the head of civil aviation in Dubai – stated: "Considering that (ongoing) investments in tourism ... in Dubai exceed 365 billion dollars, the number of visitors to Dubai will rise dramatically over the next few years”.

He added: "Our multi-billion (dollars) investments in the aviation sector are in line with this projected growth".

Among other cities forming the United Arab Emirates, Abu Dhabi – the richest member – will inject $7 billion into its own airport redevelopment programme, riding on the growth of its national airline Etihad. Elsewhere, Qatar is boosting its airport industry to the tune of $5.5 billion – creating a new airport able to handle 60 million passengers by 2020. The initial phase of Doha International Airport is expected to have been completed by the end of next year.

According to Mr Riaz, when assessed overall, a “healthy competition between GCC countries” can be seen. He added that while Dubai’s airport growth would be hard to emulate, "the pie (of regional air travel) keeps growing.”

"There is a spillover of the economic progress taking place in Asian countries”, he explained, with businessman from that part of the world viewing the Arab states as increasingly attractive propositions. Additionally, a number of budget airlines have emerged in recent times, such as Air Arabia, which is based at Sharjah Airport. This creation of a new breed of airlines is, in itself, fuelling the need for more airports to cope with the increased demand.

Sharjah is yet another airport set to be developed upon. As highlighted by Mr Riaz: "The Sharjah airport expansion plans are based on Air Arabia's expansion plans”.

Source – Airport International’s Middle East Correspondent

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