Aviation to drive 37% of Dubai economy by 2020

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Updated 18 November 2014

Aviation to drive 37% of Dubai economy by 2020

Aviation will account for more than a third of Dubai’s economy by 2020, according to a study carried out by a global research firm.
Aviation contributed 27 percent — or $26.7 billion — to Dubai’s gross domestic product in 2013, Oxford Economics said in a report for Emirates Airline and Dubai Airports.
“Between now and 2020 the contribution of the aviation sector to Dubai’s economy is expected to grow at a faster rate than the economy as a whole,” the research firm said.
An increase in passenger numbers and expansion of Dubai’s existing airport capacity will help to drive this growth, the report said.
The report said the sector would grow to contribute $53.1 billion — equivalent to 37.5 percent of GDP — by 2020.
Emirates airline, Dubai Airports and the aviation sector as a whole contributed $26.7 billion to the Dubai economy in 2013, which was almost 27 percent of Dubai’s GDP and supported a total of 416,500 jobs accounting for 21 percent of the emirates’ total employment. The figures were based on the latest report “Quantifying the Economic Impact of Aviation in Dubai” conducted by Oxford Economics, as a follow-up to a 2011 study done by the same firm.
“We will continue to take a consensus-based approach to infrastructure investment, embrace open competition, and focus on opening up and connecting markets through efficient operations,” Sheikh Ahmed bin Saeed Al-Maktoum, chairman and CEO of Emirates Airline and Group, chairman of Dubai Airports and president of the Dubai Civil Aviation Authority, was quoted as saying in a press release.
“At the end, we want Dubai to be the top choice for international travelers and traders — as a destination, and as a transport hub,” said Sheikh Ahmed.
“Dubai’s success stems from a clear vision, careful planning, and collaborative execution. It is no accident that we are a global aviation hub today,” he said.
“It has taken us years to build up the critical competencies and infrastructure that we have today, and we now have a solid base on which to further develop,” added Sheikh Ahmed.
According to the release, the objective of the Oxford Economics report was to quantify the economic impact of the aviation sector and its subsequent Dubai-based supply chain.
In addition, the report explains the benefits that aviation brought to Dubai’s economy in 2013 in terms of gross value added (GVA)  and employment, and provides forecasts for the sector and its knock-on effects in 2020 and 2030.
The report re-affirms aviation’s growing significance as a major engine of economic development, and its far-reaching contributions to other industries as a catalyst for a spectrum of economic activity.

Core impact of aviation:
It is estimated that the aviation sector, including the Emirates Group, Dubai Airports, and other aviation businesses such as airlines flying into Dubai, regulatory authorities and Dubai Duty Free, had a core impact of $16.5 billion GVA in 2013. This includes direct, indirect and induced contributions and is equal to 16.5 percent of Dubai’s GDP, supporting over 259,000 Dubai based jobs.
Moreover, for every $100 of activity in the aviation sector, a further $72 is added in other sectors of the local economy from supply chain connections and expenditures. For every 100 jobs created in aviation, an additional 116 jobs are created elsewhere in Dubai. 

Tourism benefits:
Aviation has proved to be an indispensable catalyst for the growth of Dubai’s tourism industry. Tourism and travel activities in 2013 had an economic impact of $10.2 billion GVA supporting a further 157,100 jobs. In 2013, Dubai welcomed nearly 10 million non-UAE visitors who spent $13 billion, accounting for around 1 percent of foreign visitor spend globally that year. The success of Dubai as a destination has been a public and private effort to invest in world-class aviation and tourism infrastructure to support the influx of visitors. The results have paid dividends and Dubai currently captures a 0.4 percent share of the world’s business and tourism traffic, double the share it had in 2000.

One of Dubai’s greatest assets is its enhanced connectivity. In 2013, Oxford estimated that passengers could connect from Dubai to 25 cities (or 81 percent of world cities) with populations of over 10 million people.
Overall, Dubai had direct passenger flight connections to 149 cities with populations of over 1 million people, creating potential export markets of over 916 million people, or 13 percent of the world’s population.
Cargo tonnage between 1990-2013 handled in Dubai has grown on average of 13.5 percent per year, compared to global average trade volumes of 5.6 percent per year. 
The passenger and cargo connectivity provided from Dubai has positively impacted foreign direct Investment (FDI) and trade. It also has provided greater access to foreign markets, encouraging exports, and increasing competition in the local economy, benefiting consumers.
Economic benefits in 2020 and 2030
Between 2014 and 2020, the contribution of the aviation sector to Dubai’s economy is expected to grow at a faster rate than the economy as a whole, on the back of strong growth in international passenger traffic and cargo.
The sector’s airline and airport capacity continues to expand to accommodate for growing demand. 
Using industry growth forecasts and modeling projections based on current expansion plans for Dubai International (DXB) and Al Maktoum International at Dubai World Central (DWC), it is estimated that the overall economic impact of both aviation and tourism related activities will rise to a robust $53.1 billion in 2020. This will be equivalent to 37.5 percent of Dubai’s GDP, supporting over 754,500 Dubai-based jobs.
By 2020, it is estimated that Emirates will fly 70 million passengers, and the airline and its partners are already progressing plans for the right infrastructure to be in place to support and capitalize on passenger growth. The same year, Dubai expects to welcome over 20 million visitors for Expo 2020. Projects to support the six month mega-event in Dubai are already underway.
This includes a sizable increase in airport capacity which encompasses expansion of airspace, airfield, stands and terminal areas to allow Dubai International to accommodate 60 percent more aircraft stands by 2015, and service 90 million passengers by 2018.
By 2020, Dubai International is estimated to receive 126.5 million passengers, almost 30 percent higher than its original 2010 assessments.
Looking further ahead, the total economic impact of aviation by 2030 is projected to grow to $88.1 billion and will support 1,194,700 jobs.

EU seeks battery autonomy, but first it needs graphite

Updated 11 min 51 sec ago

EU seeks battery autonomy, but first it needs graphite

  • The key component in electric vehicles is currently mostly produced in Asia

VÉNISSIEUX: As Europe looks to declare its tech independence by becoming a leader in next-generation batteries, it will have to start by making its own graphite. The problem is, nearly all of it now comes from Asia, mainly China.

So France’s Carbone Savoie and Germany’s SGL Carbon, the only European firms deemed capable of taking up the challenge, have been corralled into an ambitious battery alliance launched by Brussels.

“Thank you for bringing us on board this ‘Airbus for batteries,’ though to be honest, we weren’t even on the passenger list,” Carbone Savoie’s chairman Bruno Gastinne told France’s deputy finance minister Agnes Pannier-Runacher on Thursday.

They were attending the ribbon-cutting for a new, more efficient carbon baking oven, a “brick cathedral” some five meters underground at its site in Venissieux, just south of Lyon in southeast France.

The €11 million ($11.9 million) investment will allow the company to double its carbon production, the first step for making the synthetic graphite prized for batteries.

The carbon is then shipped to its factory at Notre-Dame de Briancon in the Alps, where hydroelectric dams provide the intense electrical currents needed to turn it into graphite.

Carbone Savoie says it has developed a new production technology that uses just half the energy required currently, and cuts waste levels in half. “It will be less expensive and more efficient than Chinese graphite, while consuming less energy. The hard part is that we have to move quickly,” said Regis Paulus, the firm’s head of research and development. “To catch up with the Chinese, we have to invest massively,” he said.

EU authorities in November unlocked a whopping €3.2 billion for the European Battery Alliance, hoping to attract an additional €5 billion in private money to build the factories needed to meet homegrown demand.

Automakers are racing to shift to electric fleets, under growing pressure to cut carbon emissions and the reliance on fossil fuels. Batteries make up about 40 percent of the value of an electric car, but are currently made by companies in South Korea, China and Japan.

A single electric model from Tesla, for example, requires around 70 kilogrammes (150 pounds) of graphite, Carbone Savoie’s CEO Sebastian Gauthier said. While the material can be mined, battery producers usually prefer the more expensive synthetic versions that offer improved technical performance. It is the only key component of lithium-ion batteries that can be produced in a factory — nickel, lithium, manganese and cobalt must be mined.

But without government help, few of Europe’s industrial giants were willing to embark on the costly crusade to build their own batteries.

The push has been a boon for Carbone Savoie. Even so, the company still does not produce anywhere near enough graphite required to fulfil Europe’s electric car dreams, or its own goal of becoming “the European leader in battery graphite” by 2025.

That would require a good chunk of the funds promised by Brussels, which have been pledged by Germany, France, Italy, Poland, Belgium, Sweden and Finland.