Dubai plans to relocate its busy international airport to $35bn new facility within 10 years

Dubai International Airport, the world's busiest for international travel, is set to relocate its operations to the city-state's second, expansive airfield in its southern desert region "within the next 10 years" in a project valued at nearly $35 billion, according to a recent announcement by its ruler.

Sheikh Mohammed bin Rashid Al Maktoum's announcement on Sunday signifies the latest development in the recovery of its long-haul carrier Emirates following the grounding of international travel due to the coronavirus pandemic. Plans have been in place for years to shift the operations of the airport, known as DXB, to Al Maktoum International Airport at Dubai World Central. However, these plans had been delayed due to the fallout from the sheikhdom's 2009 economic crisis.

"We are constructing a new project for future generations, ensuring continuous and stable development for our children and their children in turn," Sheikh Mohammed stated in an online statement. "Dubai will be the world's airport, its port, its urban hub, and its new global centre."

The announcement included computer-rendered images of a curving, white terminal reminiscent of the traditional Bedouin tents of the Arabian Peninsula. The airport will feature five parallel runways and 400 aircraft gates, according to the announcement. The airport currently has just two runways, similar to Dubai International Airport.

The financial health of the carrier Emirates has served as a gauge for the global aviation industry and the broader economic health of this city-state. Dubai and the airline rebounded swiftly from the pandemic by advancing with tourism, even as some countries emerged more slowly from their pandemic-induced slowdown.

The number of passengers flying through DXB surged last year, exceeding its total for 2019 with 86.9 million passengers. Its annual traffic in 2019 was 86.3 million passengers. The airport had 89.1 million passengers in 2018 — its busiest year ever before the pandemic, while 66 million passengers passed through in 2022.

Earlier in February, Dubai announced its best-ever tourism figures, stating it hosted 17.15 million international overnight visitors in 2023. Average hotel occupancy was around 77%. Its volatile real estate market remains on a hot streak, nearing all-time high valuations.

However, as passenger numbers soared, it once again put pressure on the capacity of DXB, which is constrained on all sides by residential neighbourhoods and two major highways.

Al Maktoum International Airport, located some 45 kilometres (28 miles) away from DXB, opened in 2010 with one terminal. It served as a parking lot for Emirates' double-decker Airbus A380s and other aircraft during the pandemic and has gradually come back to life with cargo and private flights since then. It also hosts the biennial Dubai Air Show and has a vast, empty desert in which to expand.

The announcement by Sheikh Mohammed highlighted Dubai's plans to expand further south. Already, its nearby Expo 2020 site has been offering homes for buyers.

"As we build an entire city around the airport in Dubai South, demand for housing for a million people will follow," Dubai's ruler said. "It will host the world's leading companies in the logistics and air transport sectors."

However, financial pressures have halted the move in the past. Dubai's 2009 financial crisis, triggered by the Great Recession, necessitated a $20 billion bailout from Abu Dhabi.

Meanwhile, the city-state is still attempting to recover after the heaviest rainfall ever recorded in the UAE, which disrupted flights and commerce for several days.

By RSS/AP