Dubai’s Al Maktoum airport expansion delayed until 2030

A major expansion of Dubai’s second airport Al Maktoum International will open in 2030. (Photo credit: Dubai Media Office's Twitter account)
Updated 19 October 2018

Dubai’s Al Maktoum airport expansion delayed until 2030

DUBAI: A major expansion of Dubai’s second airport Al Maktoum International will open in 2030, the emirate’s government said, five years later than officials had previously indicated.
The airport will be able to handle 130 million passengers a year when the first phase of a planned expansion opens in 2030, and ultimately more than 260 million passengers a year, the statement, released by the Dubai government’s media office on Thursday, said.
Dubai officials had previously said the first phase would open by 2025. The Dubai government media office could not immediately be reached outside working hours on Friday for comment on the reason for the delay.
Dubai expects to spend around $36 billion on the airport expansion and the Dubai World Central aviation complex where it is located.
Reuters reported on Oct. 3 that the expansion had been delayed and that the second stage of financing for the project had been delayed indefinitely.
It is not the first delay to the airport’s expansion. A smaller capacity increase is a year behind schedule, although it is expected to be finished this year. At that point the airport’s capacity is expected to be 26 million passengers per year.
The government also said that Dubai Aviation Engineering Projects (DAEP) had launched a tender to build the substructure for the airport, in what would be the largest single value contract issued for the airport to date.
Al Maktoum International, which opened to passengers in 2013, currently handles only a fraction of Dubai’s passenger traffic. It will be larger than main airport Dubai International, currently one of the world’s busiest, when the first phase of the expansion opens and eventually become the new base of Emirates airline.
Dubai Airports said in 2016 it was expanding Dubai International to handle 118 million passengers a year by 2023, 18 million more than initially planned, in case the development of Al Maktoum International was delayed.

Higher impairment charges hit UAE banks Emirates NBD and ADCB

Updated 29 min 22 sec ago

Higher impairment charges hit UAE banks Emirates NBD and ADCB

DUBAI: Dubai's biggest lender Emirates NBD reported a 15 percent drop in fourth-quarter earnings on Monday, below analysts' forecasts, on a jump in impairment charges, sending its shares down around 1 percent.

The bank booked impairment charges of 2.06 billion dirhams ($560.88 million) in the quarter, up more than three times from a year earlier due to higher bad debt charges as it consolidated results of newly acquired Turkish lender DenizBank.

Even without DenizBank, impairment charges were up 78 percent on lower writebacks and recoveries. The bank did not give details of these charges.

Banks in the United Arab Emirates (UAE) are bracing for more writedowns from the real sector amid a downturn, especially in the Dubai property market.

Fitch Ratings recently warned a weakening property market in the UAE was likely to put more pressure on the asset quality of the banking sector.

Emirates NBD reported a net profit of 2.02 billion dirhams in the fourth-quarter, down from 2.39 billion dirhams in the same period a year earlier. EFG Securities had projected a net profit of 2.45 billion dirhams.

Full year profit, however, surged 44 percent, underpinned by double-digit growth in net interest income, stronger loan growth and gains from the listing of the bank's unit Network International.

Separately, Abu Dhabi Commercial Bank, the UAE's third-biggest bank, also reported a 16 percent drop in fourth-quarter profit on Monday, hurt by an increase in impairment charges.

Emirates NBD said it expected the Expo 2020 world fair to support multiple sectors in Dubai, but a softening real estate market remained a risk for 2020.