DUBAI AEROSPACE ENTERPRISE: Dubai spreads its wings
Dubai has long recognised the importance of aviation. When Shaikh Rashid bin Saeed al-Maktoum became ruler in 1958, one of his first moves was to develop Dubai International Airport. Following his father's example, the present ruler, Shaikh Mohammad bin Rashid al-Maktoum, made it one of his first priorities to introduce an aviation initiative aimed at promoting further economic development.
The launch of Dubai Aerospace Enterprise (DAE) in February saw leading business groups from within the emirate join forces to establish a $15,000 million venture designed to turn Dubai into an aviation hub serving all aspects of the industry, including manufacturing, servicing and maintenance, airport development, financing and education. The six founding partners - Dubai International Capital, Emaar Properties, Istithmar, Dubai International Financial Centre (DIFC), Amlak Finance and Dubai Airport Free Zone Authority (DAFZA) - each bring a different area of expertise, ranging from financing and leasing to real estate development.
DAE's plans are built on solid foundations. Dubai now has close to two decades of experience as a global aviation hub, and has developed relationships with key players in the industry that DAE can partner.
Location is also critical. The ever-increasing distance capacity of modern passenger aircraft means Dubai is now within single flight range of most of the world's major cities. Even more important, the emirate is on the doorstep of South Asia, which, along with China, is expected to be the focus of growth for the global aviation industry in coming decades. Unlike Europe and North America, where development occurred in stages, growth in these regions will be fast. The budget airline concept is now tried and tested, and the opportunities are immense. 'Dubai is close to where the heavy growth will be: not that there won't be growth in other regions, but with so much of the world's economy being driven from India, China and South Asia, there is a new industry forming,' says DAE chief executive officer Bob Johnson.
Airports are the immediate priority, as without them, the aviation industry would literally fail to take off. DAE estimates that more than $120,000 million will be spent on developing airports in Africa, the Middle East, the Indian sub-continent and the rest of Asia by 2014. DAE plans to be involved from the beginning, by offering an airport development model based on the experience and partnerships Dubai has gained with its domestic airports, Dubai International Airport and, more recently, Dubai World Central. 'A tremendous number of airports need to be built, and we will create a model that stands out for new and existing airports around the world,' says Johnson.
'Airports have become bottlenecks,' he says. 'We have done a lot to make it safe and secure to fly, but that has meant things get clogged up, so we need to look at how we can improve efficiency.'
The creation of Dubai World Central as an 'airport city' shows that 21st century airports are far more than just a collection of runways and terminal buildings. The 140-square-kilometre city will include a 25-square-kilometre logistics city, a residential city, a commercial area, tourism attractions and leisure facilities. Such developments have a direct impact on the financial viability of the actual airports. By incorporating other income-generating components, governments can offset construction costs by selling land close to the airport for real estate development. 'We need to recognise that an airport is a city,' says Johnson. 'A lot of continuous activity happens there, and we need to make it a great place to work and a great place for all the people that transit through it.'
With two airports already under construction, the focus for DAE in Dubai is developing other segments within the aviation industry to stimulate economic development and create employment opportunitie
Dubai has long recognised the importance of aviation. When Shaikh Rashid bin Saeed al-Maktoum became ruler in 1958, one of his first moves was to develop Dubai International Airport. Following his father's example, the present ruler, Shaikh Mohammad bin Rashid al-Maktoum, made it one of his first priorities to introduce an aviation initiative aimed at promoting further economic development.
The launch of Dubai Aerospace Enterprise (DAE) in February saw leading business groups from within the emirate join forces to establish a $15,000 million venture designed to turn Dubai into an aviation hub serving all aspects of the industry, including manufacturing, servicing and maintenance, airport development, financing and education. The six founding partners - Dubai International Capital, Emaar Properties, Istithmar, Dubai International Financial Centre (DIFC), Amlak Finance and Dubai Airport Free Zone Authority (DAFZA) - each bring a different area of expertise, ranging from financing and leasing to real estate development. DAE's plans are built on solid foundations. Dubai now has close to two decades of experience as a global aviation hub, and has developed relationships with key players in the industry that DAE can partner. Location is also critical. The ever-increasing distance capacity of modern passenger aircraft means Dubai is now within single flight range of most of the world's major cities. Even more important, the emirate is on the doorstep of South Asia, which, along with China, is expected to be the focus of growth for the global aviation industry in coming decades. Unlike Europe and North America, where development occurred in stages, growth in these regions will be fast. The budget airline concept is now tried and tested, and the opportunities are immense. 'Dubai is close to where the heavy growth will be: not that there won't be growth in other regions, but with so much of the world's economy being driven from India, China and South Asia, there is a new industry forming,' says DAE chief executive officer Bob Johnson. Airports are the immediate priority, as without them, the aviation industry would literally fail to take off. DAE estimates that more than $120,000 million will be spent on developing airports in Africa, the Middle East, the Indian sub-continent and the rest of Asia by 2014. DAE plans to be involved from the beginning, by offering an airport development model based on the experience and partnerships Dubai has gained with its domestic airports, Dubai International Airport and, more recently, Dubai World Central. 'A tremendous number of airports need to be built, and we will create a model that stands out for new and existing airports around the world,' says Johnson. 'Airports have become bottlenecks,' he says. 'We have done a lot to make it safe and secure to fly, but that has meant things get clogged up, so we need to look at how we can improve efficiency.' The creation of Dubai World Central as an 'airport city' shows that 21st century airports are far more than just a collection of runways and terminal buildings. The 140-square-kilometre city will include a 25-square-kilometre logistics city, a residential city, a commercial area, tourism attractions and leisure facilities. Such developments have a direct impact on the financial viability of the actual airports. By incorporating other income-generating components, governments can offset construction costs by selling land close to the airport for real estate development. 'We need to recognise that an airport is a city,' says Johnson. 'A lot of continuous activity happens there, and we need to make it a great place to work and a great place for all the people that transit through it.' With two airports already under construction, the focus for DAE in Dubai is developing other segments within the aviation industry to stimulate economic development and create employment opportunitieThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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