Etihad Airways to help drive economic growth in UAE

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A study has found that Etihad Airways is set to help drive the economic growth in the UAE by playing a vital role in driving export-orientated business, especially those linking UAE with the fast-growing markets of the Indian sub-continent and the Far East.

Etihad Airways Chief Executive, James Hogan, said “This study is important because, for the first time, it starts to quantify the very significant and growing contribution our airline is making to the economic growth of Abu Dhabi.”

The study by Oxford Economics Group was commissioned to quantify the overall economic contribution of Etihad to the Emirate of Abu Dhabi today and in the future.

Research examined economic contribution at four levels: direct (within Etihad), indirect (suppliers to Etihad), induced (spending of direct and indirect employees) and catalytic (impacts on other industries).

Overall, the carrier contributed AED10,824 million (6.6%) of Abu Dhabi’s non-oil GDP (2.7% of total GDP) in 2007, and helped generate a total of 48,813 (or 5%) of non-oil jobs throughout the Emirate. Of this total, the carrier made a direct economic contribution of AED2,827 million (1.7%) of Abu Dhabi’s non-oil GDP in 2007, employing 4,107 people within the Emirate.

The report acknowledges the positive role that Etihad is playing in improving air links between Abu Dhabi and the rest of the global economy, concluding that the airline’s expanding network is now a key factor for many businesses in encouraging them to invest in the Emirate. Oxford Economics estimates that a 10% rise in the number of connections offered by Etihad will boost long-term GDP by 1.1%.

In 2007, Etihad expanded its flying schedule by 29% and, in doing so, increased significantly access for Abu Dhabi businesses to the global marketplace. Based on the airline’s current growth projections, Etihad’s total economic contribution to Abu Dhabi’s GDP will increase by 67% to AED18.1 billion by 2011, helping to support 84,254 jobs in the Emirate. By 2016 this GDP figure is set to increase to AED 28 billion, supporting 140,565 jobs.

The next three years will see major investment in airport infrastructure in Abu Dhabi. The opening of a new, third passenger terminal later this year – dedicated exclusively to Etihad - and a new, second runway in 2009, will help increase the capacity of the airport from seven million to 20 million passengers a year by 2011.

� Centre for Asia Pacific Aviation. Date posted: 28-Feb-08