The Middle East’s aviation sector will need to invest $151 billion in capacity expansion to meet the surging global air passenger demand, which is expected to increase more than twofold by 2040, according to Airport Council International (ACI). Gulf Construction examines the projects under way in the region to meet the anticipated demand.
01 July 2023
After a three-year hiatus caused by the Covid-19 pandemic, there is a renewed focus on airport expansion and development in the Arabian Gulf region. The GCC is home to some of the busiest airports in the world, and its strategic location at the crossroads between the East and West makes it an ideal hub for international travel.
A number of factors are driving the renewed interest in airport expansion, including rising tourism, particularly in Saudi Arabia, and the need to accommodate increasing passenger traffic. Saudi Arabia is reportedly planning to build 20 new airports, while the other Gulf countries are also investing in airport expansion projects.
Saudi Arabia – which is pushing ahead with its tourism ambitions and is now acknowledged as the world’s largest tourism investor – has committed $550 billion to develop new destinations by 2030, according to media reports. The World Tourism Barometer has indicated that the kingdom welcomed 16.6 million tourists in 2022 compared to 3.5 million in 2021, highlighting the government’s early success in its drive to become a major tourism hub in the region. Over the next 10 years, Saudi Arabia is reported to be committing $100 billion to the aviation sector, which will include the construction of one of the world’s largest airports.
According to the Airport Council International (ACI), airports in the Middle East will need to invest $151 billion in capacity expansion as the global air passenger demand is expected to increase more than twofold by 2040.
The ACI forecasts close to 19.7 billion passengers are expected to traverse the world’s airports by 2040 and the Middle East airports will handle 1.1 billion passengers by that year – a significant increase from 2019’s 405 million.
According to the CAPA – Centre for Aviation, as many as 155 airport projects worth $209.4 billion are in various stages of development in the Middle East.
Bahrain
Bahrain, which recently opened a world-class international airport terminal, has already initiated plans for a greenfield airport to cater to the anticipated increase in traffic over the next decade. The Hague-headquartered Netherlands Airport Consultants (Naco) has newly been appointed by Bahrain’s Ministry of Transportation & Telecommunications to conduct an initial study for the proposed estimated $10-billion airport project which is expected to be located on reclaimed land off Muharraq island, which hosts the current Bahrain International Airport (BIA).
Work is currently in progress on the Express Cargo Village on a 25,000-sq-m area within the BIA. This sophisticated logistics hub will provide a one-stop shop for express cargo operators, each of which will have its own premises within the facility. The contract includes the construction of four warehouses and associated infrastructure, central utilities and networks and full fit-out and testing and commissioning of the two warehouses, the first of which will be occupied by FedEx, on completion later this year.
Kuwait
Kuwait International Airport’s expansion project continues to make progress with work under way on its third package – involving the construction of a new control tower and runway as well as the revamp and modernisation of the eastern runway and infrastructure services – and the new state-of-the-art T2 terminal.
The Kuwait Airport’s Passenger Terminal 2 expansion, costing $4.36 billion, will boost the airport’s annual passenger handling capacity to 13 million passengers per year with the flexibility to increase to 25 million passengers and 50 million passengers in the future. The project aims to be the world’s first LEED Gold-accredited passenger terminal building.
Tenders have just been issued to six prequalified companies to manage and operate Kuwait International Airport, including the T2 terminal and associated facilities. These companies include GMR Airports of India, Germany’s Fraport AG Frankfurt Airport Services Worldwide and Munich Airport International, Incheon International Airport Corporation of South Korea, TAV Havalimanlari Holding Anonim Sirketi of Turkiye and Daa International of Ireland. The deadline for the submission of bids is October 10, 2023.
Another project on the anvil is the Kuwait City Cargo Project, which is expected to improve the air freight system in terms of increasing cross-border trade from the airport and port. The first phase of the project is expected to cover an area of 3 million sq m and feature 67 cargo stations, among the largest of its kind in the region.
Oman
Expansion work is under way at Muscat International Airport, where a second runway and taxiways are being built for completion by the year-end.
Other airport projects in progress in the sultanate are at Musandam and Ras Al Hadd. Musandam Airport, costing $250 million, is expected to get completed by late 2026. The work includes the construction of two runways and a passenger terminal with a capacity of 250,000 passengers per year.
According to the Muscat Daily, Civil Aviation Authority (CAA) has issued a tender to appoint a specialist consultant to conduct a feasibility study for the land near Ras Al Hadd Airport and make recommendations for its best use and investment potential.
Qatar
Construction work is currently under way on Phase 2B of the expansion of Hamad International Airport in Doha. Work on the expansion plan was launched in 2020 and is being carried out in two phases. Phase A, which involved the construction of a central concourse that interlinks concourses D and E, was completed in November 2022. Work on Phase B, which covers expansion of the passenger terminal and extension of concourses D and E, commenced in January this year, according to media reports. It will increase the airport’s capacity to over 70 million passengers.
A new cargo terminal, comprising a three-level facility with a footprint of 85,000 sq m, is expected to be completed this year.
Saudi Arabia
In line with the kingdom’s Vision 2030 launched in 2016 and following the revival of the tourism sector after the Covid-19 pandemic, Saudi Arabia is now focusing on its aviation strategy to help position the nation as a global hub connecting Asia, Europe and Africa. Expanding existing airports and building new ones will facilitate its tourism ambitions as the country aims to make the sector a key revenue earner.
Among its latest moves, the kingdom has appointed Egis, an international consulting and construction engineering group, to provide consulting services for 26 airports in the country.
Saudi Arabia has also initiated plans to build one of the world’s largest airports by appointing leading architectural firm Foster+Partners to design the masterplan for King Salman International Airport, which is expected to cover a 57-sq-km area in Riyadh. The airport will feature six parallel runways, the existing terminals named after King Khalid, as well as 12 sq km of airport support facilities, residential and recreational facilities, retail outlets, and other logistics real estate. Once operational, the airport aims to accommodate up to 120 million travellers by 2030 and 185 million passengers – and process 3.5 million tonnes of cargo – by 2050. The new airport is being designed as an aerotropolis centred around a seamless customer journey, world-class efficient operations, and innovation, with sustainability at its core.
As part of these plans, Saudi Arabia is set to appoint a contractor for the revamp and reconstruction of Terminals 1 and 2 and the connection terminals at King Khalid International Airport. The scope of works covers an area of 500,000 sq m.
Another major plan on the cards is to expand and transform Jeddah’s King Abdulaziz International Airport (KAIA) into an airport city. According to CAPA, Jeddah Airports Company (Jedco) intends to undertake a SR115 billion expansion project which would increase the airport’s capacity from 40 million to 114 million passengers per annum. This involves the design and expansion of Terminal One and the construction of a new passenger terminal, for completion in 2031.
Meanwhile, to serve one of its giga-projects, a former military airport at Neom Bay has been designated as a commercial airport and is handling passengers to and from Saudi Arabia’s $500-billion futuristic city Neom.
Another new airport, Red Sea International Airport (RSI), is due to open this year to handle up to a million passengers to Red Sea Global’s ambitious regenerative tourism and construction projects – The Red Sea Project and Amaala.
Among other developments, the Royal Commission for AlUla (RCU) has chosen Egis to undertake several projects related to the development of a private aircraft terminal – a Fixed Based Operator (FBO) – at AlUla’s International Airport.
This new project is a continuation of the collaborative efforts between RCU and Egis that began last year with the establishment of a new airport hangar for private aircraft, which opened last November. Built in line with clean energy standards, the 3,000-sq-m hangar is equipped with ground flight and engineering crews and can also provide long-term parking services.
Egis’ current scope of work is divided into two components: expansion of the existing hangar, to provide the necessary storage, maintenance and operations space, and the development of a new purpose-built FBO terminal building.
Some of the regional airports being redeveloped are located in Abha, Al Ahsa, Al Qassim, Arar, Hail and Jizan.
UAE
Dubai World Central (DWC) – also known as Al Maktoum International Airport – which launched passenger operations in October 2013 – is expected to soon embark on its expansion plans, which have been put on the backburner since the outbreak of the Covid-19 pandemic.
Currently DWC has a capacity for 26.5 million passengers per annum. Upon completion, it aims to become the world’s largest airport with an ultimate capacity of more than 160 million passengers and 12 million tonnes of cargo per annum operating on five runways. The airport forms the heart of a greater project, a 140-sq-km multiphase Dubai World Central airport city development of six clustered zones that includes the Dubai Logistics City (DLC), Commercial City, Residential City, Aviation City and the Golf City.
In Abu Dhabi, work is nearing completion on the state-of-the-art Midfield Terminal, which is expected to be inaugurated this year. The 700,000-sq-m facility is expected to have an annual handling capacity of over 45 million passengers.
Other airports in the UAE, including Fujairah and Sharjah, have launched expansion plans too. The Sharjah International Airport expansion, costing an estimated $517 million, is targeted for completion by the end of next year. The work involves the construction of a new passenger terminal and supporting infrastructure to raise its capacity to accommodate 20 million passengers by 2023. A new runway is under construction at Fujairah International Airport.