Brakes Applied On the Construction Of Dubai World Central Airport

Work on Dubai’s mega-airport, Dubai World Central, has been halted due to a sharp rollback of the UAE’s economy.

Emirates flight over Dubai
Overall deceleration of economy urges freezing of DWC construction. Photo: Emirates

Bloomberg reports that construction work has temporarily ceased at Al Maktoum International Airport (DWC). The decision to halt construction was forced on Dubai Airports by a general malaise in the economy of the region.

Dubai’s government intends the new airport at Jebel Ali to be the largest in the world. Annual passenger footfall is expected to be in the region of 250 million. But the cost of the entire DWC development has been estimated to be in excess of $32 billion.

DWC Phase 1

In 2007, Al Maktoum’s runway was completed. It took Al Naboodah Contracting just 600 days to complete. A year later, construction of the airport’s cargo terminal reached the half-way mark. But a previous dwindling of the Gulf economy then halted further expansion of the site. Work was postponed until 2027.

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The latest economic downturn looks set to push back completion still further.

Since the site opened for business in 2010 only 11 passenger airlines visit the airport. Furthermore, despite a worthy increase in capacity since its opening, the number of customers passing through the terminal stands at less than a million.

Emirates airline in flight
The latest economic turn-down looks set to push completion back still further. Photo: Emirates

Crucially, Emirates, which targeted the airport as its new super-hub, has ambitions held at bay by the latest faltering of the build. It aimed to take full advantage of the airport’s rating as the biggest on the planet. At its inception, Dubai’s executive promised that Al Maktoum could effortlessly handle twice the total number of passengers as any of the world’s busiest airports, including Heathrow.

If built, the super-hub would allow Emirates to build on its reputation as the world’s go-to long-haul airline. Meanwhile, the Dubai carrier languishes at the already overcrowded Dubai International airport.

Economy slow down

Despite its reputation as a desert boomtown, Dubai is left wanting and has been since 2017. In 2018 the city’s economy grew at its slowest since 2010.

According to The Economist, the city’s reliance on revenue from trade, tourism and property rather than oil has meant that it is at the mercy of regional conflicts and political unrest. Furthermore, some analysts suspect the property market to be over-saturated.

Emirates airline in flight
The fate of the entire project is to be determined by the Gulf economy. Photo: Emirates

That leaves the fate of the Al Maktoum Big Build in serious doubt. And to make matters worse for Dubai Airports Emirates is also not in the best shape, thwarted both by high oil prices and an overall lull in tourism. The Financial Times reported in May of this year that Emirates’ profit fell by two thirds in the 2018-2019 financial year. In addition, the carrier’s fuel bill rose 25% to Dh30.8bn, accounting for 32% of operating costs.

Writes the FT, boss of Emirates Group said, “2018-19 has been tough, and our performance was not as strong as we would have liked.

Higher oil prices and the strengthened US dollar eroded our earnings, even as competition intensified in our key markets . . . and we also saw travel demand weaken, particularly in our region.”

Revised timescale

In a statement to Bloomberg, Dubai Airports revealed that it was in the process of a revised timescale for the build. However, a spokesman for Dubai Airports admitted that “exact timelines and details of next steps are not as yet finalized.”

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Emre

Once Dubai was the only option with proper facilities in the Gulf region where Doha and Abu Dhabi were lacking with their third world-ish style airports. But now Qatar is also playing big with Hamad International Airport. Moreover many new airports which directly rival the Gulf are either operational now such as Istanbul Airport or planned to be built like the proposed new Central Polish Airport plan. Moreover both London and Frankfurt are seeking for an expansion. Also Abu Dhabi’s glorious expansion plans were slowed down by Etihad’s poor performance in the recent years. So I think the UAE will… Read more »

Smokerr

London and European Airports have nothing to do with ME. Istanbul does at least to some degree of siphoning off traffic in that region. Once again its being proved that a State run operation is not quick in response and it will be interesting to see how Emirate fares down the road. TC made some foolish moves and commitments with the RR Trent 900 and its supposed improvement over the GP 7000. He can’t make up his mind on his fleet and he picks up orders, drops them, picks them up again.