As-salamu alaykum - Dubai Airports IPO could do well, CEO says
As-salamu alaykum - If Dubai ever sold a stake in its airport, the CEO says it would likely be successful and draw interest from international institutional investors.
Paul Griffiths, chief executive of Dubai Airports, noted that airports are attractive investments with price-to-earnings ratios often in the twenties. He added, “If we were ever the subject of an IPO, I'm sure it would be successful,” while reminding that the government shareholder would make any final decision.
Griffiths pointed to examples like major global hubs that have seen foreign institutional investment, explaining that airports are often seen as blue-chip utilities with steady turnover and reliable profitability.
Dubai Airports, together with home carriers Emirates and flydubai, is central to the emirate’s aviation-led economy. A 2024 study by Oxford Economics, commissioned by Emirates and Dubai Airports, forecasts the aviation sector will account for about 32% of Dubai’s economy and one in four jobs by 2030.
The report projects the sector will contribute Dh196 billion (about $53.4 billion) to Dubai’s GDP and support 816,000 jobs in 2030, up from an estimated Dh137 billion and 631,000 jobs in 2023. Construction of the passenger terminal at Al Maktoum International (DWC) is expected to add Dh6.1 billion to the economy in 2030 and create 132,000 jobs.
Griffiths said the new airport could handle up to 260 million passengers a year by 2050. Dubai Airports - a state-owned entity - stresses that aviation services should remain affordable at the new Al Maktoum terminal when it opens around 2032.
He described current aeronautical charges in Dubai as “incredibly reasonable,” estimating fees are far lower than places like London Heathrow. “Our aim is always to make aviation affordable in Dubai because we want the 104 airlines we've got to actually come here and get great service at a reasonable price,” he said. “We've got to be the engine of growth and you can't be that if you've overpriced your aviation infrastructure.”
Authorities face the huge task of moving operations from DXB to DWC in one go rather than in phases. Dubai Airports is preparing a detailed operations plan for the 2032 transfer. “We will have to be very, very slick and allow nothing to go wrong,” Griffiths said, noting they may need to clear roads and move equipment as quickly as possible.
DXB is reaching capacity - by 2031 it will handle at least 114 million passengers and current infrastructure will be maxed out. Griffiths said DXB is forecast to handle about 95.3 million passengers this year and is on track to reach 100 million within about 18 months.
Listen to the full interview on The Inside Brief podcast for more details.
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
Fi amanillah.
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