Abu Dhabi looks to new aviation era as $3bn terminal to open


Deena Kamel
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Abu Dhabi International Airport's long-awaited Midfield terminal building is scheduled to begin operations in early November, bolstering the emirate's position as a global centre for trade and business.

Now known as Terminal A, the new building will accommodate up to 45 million passengers per year, process 11,000 travellers per hour and operate 79 aircraft at any given time, state-owned operator Abu Dhabi Airports said on Thursday.

"As Abu Dhabi’s new gateway to the world, Terminal A is an embodiment of Abu Dhabi Airports’ commitment to support the emirate’s sustainable economic development," said Sheikh Mohammed bin Hamad, chairman of Abu Dhabi Airports.

"The opening of the facility, which is on par with the largest and grandest on our planet, turns over a new page in Abu Dhabi’s 55-year aviation history. A beacon of modernity and sophistication, it will be a pivotal driver for our emirate’s growth by spurring tourism and trade.”

Covering 742,000 square metres of built-up area, Terminal A is one of the largest airport terminals in the world and will significantly increase Abu Dhabi International Airport’s passenger and cargo capacity.

Airlines prepare for move to Terminal A

"Etihad Airways is excited and prepared to move into its new home at Terminal A ... we’re looking forward to the enhanced customer journey it will provide," Mohammed Al Bulooki, chief operating officer at Etihad Airways, told The National.

"Etihad is actively collaborating with Abu Dhabi Airports to ensure a seamless transition and will provide clear information to its guests about their departure and arrival terminals."

Etihad’s flight schedules for Terminal A are in the final stages of preparation and the airline will communicate directly with passengers regarding any changes that may affect them during this transition, he added.

Wizz Air Abu Dhabi, a joint venture between Hungary's Wizz Air and Abu Dhabi state holding company ADQ, also welcomed the move.

“We look forward to moving to Midfield terminal from the beginning of November," Johan Eidhagen, managing director of Wizz Air Abu Dhabi, told The National.

"Abu Dhabi reaffirms its leading position as a global aviation hub, providing passengers with speed and comfort for a seamless and digitised journey. Together, we are committed to enhancing the future of the industry to secure a thriving and sustainable aviation ecosystem.”

Air Arabia Abu Dhabi, the low-cost joint venture with Etihad Airways, said the terminal opening in November will further improve the travel experience from the emirate.

"With its state-of-art infrastructure, the facility will further contribute to Abu Dhabi’s success of aviation industry and its ecosystem while providing Air Arabia with the opportunity to broaden its services, offering passengers an elevated travel experience from the capital, Abu Dhabi,” Adel Al Ali, group chief executive of Air Arabia, said.

The new terminal opening is a "significant development for the aviation landscape in Abu Dhabi and the broader Gulf region", said Linus Bauer, founder and managing director of Bauer Aviation Advisory.

"This expansion aligns with the continuing efforts to enhance airport infrastructure and accommodate the growing demand for air travel.

"The addition of the new terminal is likely to strengthen Abu Dhabi’s position as one of the regional aviation megahubs, alongside Dubai’s airport capacity expansions and Riyadh’s new planned terminal," he added.

The timing of the new terminal’s opening as air travel demand soars following the pandemic underscores "the region’s commitment to meeting passenger needs and capitalising on the strong rebound in travel", Mr Bauer said.

The move is expected to contribute to increased capacity in the region, facilitating smoother travel experiences for Etihad Airways' passengers and supporting the local economies, he added.

The new terminal, on which construction began in 2012, was originally scheduled for completion in 2017.

"The aviation world in the region has changed significantly since the original planned opening," said John Strickland, director of aviation consultancy JLS Consulting.

"Abu Dhabi's Etihad Airways has become a more focused operation, low-cost carriers have become important players in Abu Dhabi and there has been growth around the region."

The terminal opening comes amid "growing demand and healthy market dynamics", he added.

Abu Dhabi is seeking to diversify non-oil sectors – as part of wider plans to reduce the economy's reliance on oil – with a focus on developing strategic industries including travel, tourism, cargo and logistics.

"This remarkable expansion of one of the busiest airports in the Middle East not only enhances connectivity but reaffirms our status as a hub for tourism, trade and commerce," said Saood Al Hosani, undersecretary of the emirate's Department of Culture and Tourism.

"For decades, Abu Dhabi has served as a gateway to the world, and the new terminal will unlock new avenues for cultural exchange, renewed exploration and unforgettable experiences – further contributing to the emirate welcoming more than 24 million visitors in 2023."

The new midfield terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase, Etihad chief executive Antonoaldo Neves told The National in May.

The Abu Dhabi-based airline aims to triple its number of passengers to 30 million and double its fleet to 150 planes by 2030, aided by the new airport terminal, he said at the time.

The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports
The new terminal at Abu Dhabi International Airport will enable home airline Etihad Airways' next growth phase. Photo: Abu Dhabi Airports

The new terminal's opening comes amid a massive boom in air travel as the global aviation industry recovers from the devastating effects of the Covid-19 pandemic.

Demand for travel has continued unabated despite higher air fares and inflationary pressure. A continuing mismatch between travel demand and available airline seats has sent fares soaring.

Global passenger traffic reached 94 per cent of pre-Covid levels in June, according to latest figures from the International Air Transport Association (Iata).

Passenger traffic through Abu Dhabi International Airport jumped 67 per cent year-on-year in the first six months of the year as it expanded its route network and added more airline customers.

A total of 10.2 million passengers used the airport in the January to June period, up from 6.2 million in the same time last year.

Abu Dhabi plans to increase the tourism sector's contribution to its gross domestic product to 12 per cent by 2030, up from 5 per cent this year, as the emirate continues to promote itself as a travel and culture destination, Mr Al Hosani said in June.

The UAE capital is “on track” to meet its target of attracting 24 million visitors this year, up from 18 million last year, DCT Abu Dhabi said.

Martin Sabbagh profile

Job: CEO JCDecaux Middle East

In the role: Since January 2015

Lives: In the UAE

Background: M&A, investment banking

Studied: Corporate finance

COMPANY%20PROFILE
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When is VAR used?

Goals

Penalty decisions

Direct red-card incidents

Mistaken identity

The%20specs
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The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

While you're here
Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

SPEC SHEET

Display: 6.8" edge quad-HD  dynamic Amoled 2X, Infinity-O, 3088 x 1440, 500ppi, HDR10 , 120Hz

Processor: 4nm Snapdragon 8 Gen 1/Exynos 2200, 8-core

Memory: 8/12GB RAM

Storage: 128/256/512GB/1TB

Platform: Android 12

Main camera: quad 12MP ultra-wide f/2.2, 108MP wide f/1.8, 10MP telephoto f/4.9, 10MP telephoto 2.4; Space Zoom up to 100x, auto HDR, expert RAW

Video: 8K@24fps, 4K@60fps, full-HD@60fps, HD@30fps, super slo-mo@960fps

Front camera: 40MP f/2.2

Battery: 5000mAh, fast wireless charging 2.0 Wireless PowerShare

Connectivity: 5G, Wi-Fi, Bluetooth 5.2, NFC

I/O: USB-C

SIM: single nano, or nano and SIM, nano and nano, eSIM/nano and nano

Colours: burgundy, green, phantom black, phantom white, graphite, sky blue, red

Price: Dh4,699 for 128GB, Dh5,099 for 256GB, Dh5,499 for 512GB; 1TB unavailable in the UAE

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Country-size land deals

US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:

Louisiana Purchase

If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.

Florida Purchase Treaty

The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty. 

Alaska purchase

America's spending spree continued in 1867 when it acquired 1,518,800 km2 of  Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".

The Philippines

At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million. 

US Virgin Islands

It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.

Gwadar

The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees. 

Company%C2%A0profile
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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Updated: August 31, 2023, 5:00 PM`