Passenger traffic last year exceeded Dubai Airports’ forecast at the start of the year of 56.5 million by more than 1 million passengers. Randi Sokoloff / The National
Passenger traffic last year exceeded Dubai Airports’ forecast at the start of the year of 56.5 million by more than 1 million passengers. Randi Sokoloff / The National

Dubai airport tops Hong Kong as third busiest in the world



Dubai International has become the third busiest airport in the world in terms of international passenger numbers, according to the airport's figures.

The annual traffic report, issued yesterday by Dubai Airports, showed passenger traffic surged 13.2 per cent to 57.6 million last year, up from 50.9 million passengers recorded during 2011.

Passenger traffic last year also exceeded Dubai Airports' forecast at the start of the year of 56.5 million by more than 1 million passengers.

The figures mean Dubai has knocked Hong Kong off the third place spot in the world's airport rankings.

"Following its busiest month and year on record, Dubai International has taken over as the world's third ranked airport for international passengers, vaulting ahead of Hong Kong International Airport in the global rankings," said an airport spokesman.

Hong Kong International Airport reported 56.5 million passengers and 352,000 aircraft movements, representing annual growth of 4.7 per cent and 5.3 per cent respectively.

Dubai's year-end numbers were bolstered by a record 5.3 million passengers last month, 13.4 per cent higher than the 4.6 million passengers recorded in December 2011 and the second month in Dubai International's 52-year history that passenger traffic exceeded 5 million passengers.

Aircraft movements for last year reached 344,245, up 5.5 per cent from the 326,318 recorded in 2011.

"Moving into the top three is a fantastic achievement for Dubai International and we now have London's Heathrow and the number one spot firmly within our sights," said Paul Griffiths, the chief executive of Dubai Airports. "The opening of Concourse A, the world's first purpose-built A380 facility, has given us the room to maintain our strong growth into the new year, with a forecast of 65.4 million passengers in 2013."

Regionally, South America is the fastest expanding market for flights to and from Dubai in terms of percentage growth last year, up 99.4 per cent due to the introduction of Emirates Airline flights to Buenos Aires and Rio de Janeiro.

Russia followed, up 36.9 per cent, followed by Australasia, up 21.9 per cent. New Emirates flights to Washington, Dallas Fort Worth and Seattle during the year pushed North American passenger traffic up 18.6 per cent, making it the fifth fastest growing region.

India remained Dubai International's single biggest country destination in terms of passenger numbers. The passenger traffic between Dubai and India continued to show robust growth during the past year, with total passenger traffic rising 7.4 per cent to 7.3 million passengers in last year.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Name: Lynn Davison

Profession: History teacher at Al Yasmina Academy, Abu Dhabi

Children: She has one son, Casey, 28

Hometown: Pontefract, West Yorkshire in the UK

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Favourite Author: CJ Sansom

Favourite holiday destination: Bali

Favourite food: A Sunday roast

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae